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I really love that they used a pic of CEO Becker from a recent Michael (ex-con, Junk Bond King) Milken Institute event. >For their part, Sonnenfeld and Tian ar
by miguelazo 4y ago
I really love that they used a pic of CEO Becker from a recent Michael (ex-con, Junk Bond King) Milken Institute event.
>For their part, Sonnenfeld and Tian argue Jerome Powell, Biden’s pick to lead the Federal Reserve, and his colleagues deserve at least some of the blame.
“There should be no mistaking that Silicon Valley Bank’s collapse was a direct result of the Fed’s persistent and excessive interest rate hikes,” they wrote.
Why? Because the Fed’s war on inflation depressed both the value of the bonds Silicon Valley Bank was relying on for capital and the value of the tech startups the bank catered to.
Of course, Silicon Valley Bank had more than a year to prepare for both of those issues.
Exactly.
- uejfiweun 4y agoYeah, to "Sonnenfeld and Tian", it's like gimme a break. The fed is in no way responsible for the results of every single bank out there. This is on SVB and SVB alone. More broadly, I'm sad that this event is likely going to disrupt the war on inflation and interest rate hikes. It might be time to start preparing for more inflation, or as Dorsey predicts, even hyperinflation.