The commentariat until recently had shifted from hard to soft landing to no landing at all. Suddenly, those lags in monetary policy don’t look so long and variable after all. But it’s highly unlikely that we are about to face another banking crisis, GFC style. The tremors reverberating across the banking world from Silicon Valley to Zurich expose idiosyncratic weaknesses, but the risk is that markets focus on the headlines and miss the bigger issue building beneath the surface.
