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Yes it's the perfect storm for economic theories... increases in the money supply and actual product shortages both causing inflation at the same time. Meanwhi
by neffy 4y ago
Yes it's the perfect storm for economic theories... increases in the money supply and actual product shortages both causing inflation at the same time.
Meanwhile increasing interest rates are in a nasty intersection with banks and other lenders stuck with low interest 30 year loans on their books, which make them very vulnerable to any new lenders.
definitely popcorn time.
- riku_iki 4y ago> with low interest 30 year loans Are those loans supported by other low interest loans they took themself?
- mynameishere 4y agoSure, checking accounts and the like.
- riku_iki 4y agoI was thinking about banks taking loans from Fed. I may be wrong, not an expert in this topic.
- neffy 4y agoNot usually in the bank's case - we have to hope - and if they are hopefully the various buffers against duration mismatches are sufficient - but then again this was the reason why Northern Rock and a bunch of other lenders went under in the 2008 crash.