For the past year, this column has repeatedly warned that Quantitative Tightening (QT) would result in failure and force the Federal Reserve into another round of emergency liquidity injections, just like the repo crisis of September 2019. And just nine months after the official start of QT, here we are. {chart} After draining a trillion dollars of cash out of commercial banks1, QT bagged its first victim. Silicon Valley Bank went bust, setting off a chain reaction of contagion and panic in the process2. To quell the panic, the Fed backstopped uninsured depositors of the elite institution and invented a new emergency ... (full story)