What Happens in Banking Won’t Stay There: Mohamed A. El-Erian

What should not be overlooked is the other, and slower, contagion channel in play — that involving enablers of economic growth — which is less in focus but also important in determining how quickly the world’s largest economy will overcome this abrupt air pocket.

Banking is based fundamentally on trust. Any erosion in trust can, and does, lead to outcomes that were deemed highly unlikely or even unthinkable just a few days earlier.

This has played out recently with the sudden collapse of Silicon Valley Bank, the forced sale of Credit Suisse to UBS and the instability at First Republic ...