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So SVB suddenly had too much money and too few people to loan this money to, so they had to buy a dangerous asset that could have exactly this problem with a ra
by elzbardico 4y ago
So SVB suddenly had too much money and too few people to loan this money to, so they had to buy a dangerous asset that could have exactly this problem with a raise on interest rates, where every sane person in 2021 would know that all that stimulus money would lead to inflation down the road and consequently a tax hike from the FED.
"The cheapness of capital gives facilities to speculation, just in the same way as the cheapness of beef and of beer gives facilities to gluttony and drunkenness"
MARX, Karl
Capital Vol. III Part V - Division of Profit into Interest and Profit of
Enterprise. Interest-Bearing Capital
Chapter 25. Credit and Fictitious Capital*