The Fed's Higher Interest Rates and the Deposit Flight of Silicon Valley Bank, Signature Bank and Silvergate Bank

The failure of Silicon Valley Bank, Signature Bank and Silvergate Bank should lead to even tighter credit conditions. Money is a leaving bank deposit accounts because they only yield 0.5%. People are buying money market funds as an alternative where you can get 4.7% very close to the Fed funds rate today. Is that leading to a major recession? Well keep in mind that before the banking crisis there was actually a doubt whether the economy would slow sufficiently.