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> Is there something else going on? FED's recent higher rates for longer policy is death sentence for VC's and personal wealth of many people... So they are tr
by chewz 4y ago
> Is there something else going on?
FED's recent higher rates for longer policy is death sentence for VC's and personal wealth of many people... So they are trying to create moral panic in order to reverse FED policy..
They will not succeed.. Rates will stay higher but a discount window will be made available for banks like SVB....
- vba616 4y agoI mean, isn't it obviously true that, in hindsight, every tightening cycle for the last 40 years has ended in the Fed going a little too far, whoops? That's not to say there weren't underlying problems with the economy and financial sector, but the Fed manifestly never knows where to stop. Populist criticism of the Fed cannot identify the point that is "too far", but surely like a stopped clock they eventually have to be right. Isn't an inverted yield curve a warning signal that can't be dismissed as economically illiterate populism?