'Big Short' Investor: SVB Crisis Is Accelerating Economic Slowdown

In The Big Short, writer Michael Lewis profiled immoderate traders who foresaw and, successful immoderate cases, profited from nan 2008 financial crisis. One of them was Danny Moses, whom character Rafe Spall yet played successful nan Academy Award-winning 2016 movie based connected nan book. Moses is still speculating astir nan economy. In a CNBC interview broadcast Tuesday, he said that nan illness of Silicon Valley slope only worsens nan US economy's slowdown.

Moses said to anyone who believes nan US system is "going to slow down," SVB "accelerated that slowdown because banks person to really propulsion backmost successful their activities." Before SVB's meltdown, nan system was already successful questionable shape. Inflation has been connected nan emergence and nan Fed has sharply accrued liking rates successful nan past year. Moses believes that if nan slope illness wasn't nan straw that collapsed nan camel's back, it was close.

Consumers, Moses told CNBC, "can't presume that nan regulators person immoderate thought what they're really dealing pinch now considering that they were wholly caught disconnected defender ... by what conscionable happened astatine Silicon Valley Bank." And, arsenic acold arsenic Moses is concerned, nan truth nan US authorities quickly bailed retired SVB connected Monday "should make group nervous."

Moses was straight captious of SVB erstwhile speaking to nan New York Times for an article chronicling nan bank's caller woes. "This isn't greed, necessarily, astatine nan slope level," he told nan Times, "It's conscionable bad consequence management. It was complete and utter bad consequence guidance connected nan portion of SVB."

In his CNBC interview, Moses said that if nan Federal Reserve believes nan presently unsteady authorities of nan system "is conscionable going to spell away," they are "kidding themselves."