How The Bank Crisis May Affect The Economy And America’s Older Workers

So far there is no reliable narrative about what the banking crisis in the United States will mean for the world economy. Even after the implosion of Silicon Valley Bank (SVB
VB
) and Signature Bank, we likely have not heard the last of troubles in regional banking. The latest institution to face a life-or-death moment, First National Bank, is not yet out of the woods, and more surprises may be lurking in the banking system.

As an academic economist with a bull’s-eye focus on the old age security of all Americans, this is the way I see it. The chances for a recession went way up since the federal government takeover of Silicon Valley Bank and Signature Bank on Sunday morning. Recession risk is up because credit has tightened. Businesses and households will find it harder to get loans, reducing growth in the broader economy.