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The Fed gave plenty of warning that they would raise rates. Preventing 10% unemployment was absolutely worth the covid helicopter money. SVB is obviously incomp
by HDThoreaun 4y ago
The Fed gave plenty of warning that they would raise rates. Preventing 10% unemployment was absolutely worth the covid helicopter money. SVB is obviously incompetent just from seeing how they've handled the last couple days and should've realized that their long term bonds would get blown up in the post pandemic monetary environment.
- game_the0ry 4y ago> The Fed gave plenty of warning that they would raise rates. The market bet against the fed, assuming fed was all talk no action. Wrong move. Most of the market is still anticipating a fed pivot / fed put and / or tax-payer bailout. Time will tell.
- hnfong 4y ago> The Fed gave plenty of warning that they would raise rates. In 2022. Up till the end of 2021, they kept saying inflation is "transitory". According to reports SVB bought a bunch of 10 year MBS in 2021. SVB is obviously incompetent in believing in that Fed BS about transitory inflation -- wait but should they have believed in the rate hikes as well then?
- noelsusman 4y agoIf your solvency as a bank relies on you accurately predicting inflation and/or fed rate decisions then something has already gone terribly wrong.