(MENAFN) Stephanie Pomboy, a renowned United States economist, has expressed concerns over a recent wave of bank and cryptocurrency failures which she believes could trigger another global financial crisis similar to the one in 2008. Pomboy, who accurately predicted the early 2000s housing bubble and the 2008 collapse, spoke to Fox News on Friday and warned that the current situation is "really serious". Her comments followed the shutdown of Silicon Valley Bank by federal regulators, making it the second-largest banking failure in United States history. This came after the closure of cryptocurrency lender Silvergate Bank earlier in the week and the bankruptcies of several crypto firms last fall.
While the Biden administration has sought to allay fears of a broader crisis, with Treasury Secretary Janet Yellen insisting that the United States banking system "remains resilient" and that regulators have the necessary tools to handle such situations, Pomboy remained skeptical. She criticized Yellen's focus on "diversity, equity and inclusion", which she described as "absolutely insane", instead emphasizing the fragile state of the United States financial system due to rapid increases in interest rates by the United States Federal Reserve and the nation's high levels of debt.
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