10 ms·

I think the problem is that inflation is bad for everyone, whereas if rates rise it hurts only the weakest players in the financial system. It's a bit like a co

I think the problem is that inflation is bad for everyone, whereas if rates rise it hurts only the weakest players in the financial system. It's a bit like a controlled forrest burn. Still though, it's too early to say. If there was a more widespread contagion and a panic, then I guess it could be bad. To me though the real culprit is the super lower interest rates we had just a few years ago. Without that, we would not be seeing any of this.

nemo44x 4y ago
No doubt but my concern is that it spreads and suddenly healthy organisms begin collapsing because whoever they relied on is suddenly insolvent because of who they relied on, etc.
- ashwagary 4y ago
  Are they really "healthy organisms" if they have unknown insolvency risks in their chain?