How the crisis in Silicon Valley can affect Brazilian restaurants

The news of the bankruptcy of an important bank in Silicon Valley, in the United States, took over the world news. The financial market is on alert, as the failure of a financial institution can have a ripple effect. In the analysis of the Bulletin FoodCo. this week, economist João Ricardo Tonin, evaluates the impacts that this banking crisis can bring to the Brazilian economy.

Tonin says that, although it is still early to say that the world will go through a financial crisis, the failure of a bank can generate a wave of uncertainties. “In these cases, people run to the banks, withdraw the money they have deposited,” she explains.

As a safety measure, banks reduce credit and, consequently, with less money supply, the cost of borrowing becomes more expensive. “This episode shows that the recovery of the economy is not linear and we have to be ready for ups and downs”, warns Tonin.

In the analysis of the FoodCo. Bulletin, the economist brings more data, studies and information so that food establishments away from home can go through these economic oscillations without losses and with their bills up to date.

The FoodCo. with the complete and audio analysis of the economist João Ricardo Tonin is an exclusive weekly content for the platform’s subscribers. FoodCo. is the largest community of bar and restaurant owners in Brazil. There are more than 13,000 entrepreneurs in the sector gathered in a network of knowledge and networking, with access to essential content for those who undertake food outside the home.