The Impact of SVB's Collapse and Sale on Banking and Capitalism.

The collapse of Silicon Valley Bank has led to smaller banks becoming more cautious about lending, resulting in a modest dip in economic growth forecasts for this year. Goldman Sachs has cut its estimate of GDP growth by three-tenths of a percentage point to 1.2%. The Federal Reserve has stepped in to offer loans to other financial institutions that may be hit with similar bank runs. Stricter bank lending standards are expected to shave 2023 GDP growth by two-tenths of a percentage point. Many economists expect the Fed to pause its rate increases at a meeting next week or lift rates by a quarter point at most.