Is the world economy out of the woods yet?

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  • Bidders circling in First Republic sale
    JP Morgan and PNC Financial Services Group were understood to be among those left in the running for the San Francisco-based lender.

    This is a bit worrying. After the last banking crisis, I thought the US would have put in place measures to bolster their banks, as we did.

    A run on the banks is a very serious problem because once people start to worry they will lose their money in a collapse, they will extract their money pronto.

    As is happening in this case, it seems the only solution is for a bigger bank to take them over. But what if people start to worry that the takeover makes the bigger bank vulnerable? An unstoppable wave of wariness about banks could have catastrophic consequences.

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