Torsten Sløk on the unfolding banking crisis

I started my career at the IMF.  The first thing you learn is that banking crises normally happen in a bad economy because the banks start losing money on loans to consumers, corporates, and commercial real estate.  What is unusual today is that with the collapse of the 14th-largest and 16th-largest banks [First Republic Bank and Silicon Valley Bank], we have what I describe as a banking crisis in a good economy - and we are about to enter a bad economy.

~ Torsten Sløk, "A Recession Is Brewing. It Will Be Lengthy.," Barron's, May 29, 2023

(Actual interview took place on May 10.)