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3. The Silicon Valley Bank experience highlights a number of issues that are relevant for analysts of financial markets. Explain the concept of moral hazard
3. The Silicon Valley Bank experience highlights a number of issues that are relevant for analysts of financial markets. Explain the concept of moral hazard and how it is relevant. Then indicate how better supervision could have reduced the chances of a bank failure. Finally explain contagion and why other banks found themselves in the same situation when Fed raised interest rates in 2023
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