Following the failure of Silicon Valley Bank and Signature Bank, the unlimited insurance of deposits held at those institutions, in apparent violation of U.S. law, signals a policy orientation towards a bailout of the entire banking system. The gravest error, the most dangerous of moral hazards, would lie in refusing to treat these bank failures as the tip of the iceberg in a national, and in fact, trans-Atlantic financial implosion, requiring not piecemeal solutions, or indeed financial solutions of any kind, but demanding rather the recreation of the economy on a new basis.
