Isn’t The Big One supposed to originate in California?

After a year of monetary tightening, the US economy was showing significant resilience and inflation was struggling to slow down. At some point, didn’t something have to give? Wasn’t a hidden imbalance bound to come to light? What if the sudden collapse of the Californian bank SVB last Friday was the catalyst? This event triggered a global stress surge, tightened financial conditions abruptly and sparked fears of contagion to the rest of the banking system. The Fed had to open a ...