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>unrealized losses due to the Fed raising rates. so they expected rates to stay at near zero indefinitely? It's obvious the banks did a bad job on their analys
by nirav72 4y ago
>unrealized losses due to the Fed raising rates.
so they expected rates to stay at near zero indefinitely? It's obvious the banks did a bad job on their analysis. It seems like everyone but these banks knew the spigot of easy money was going to stop sooner or later. It just wasn't sustainable.
- gizmo 4y agoIt's psychologically difficult to do nothing when faced with inflation and near zero interest rates. The banks should have just sat on their hands and made peace with losing money for a year or two. It's certainly preferable to buying bonds that plummet in value the moment interest rates go up. But that's what they did, because when faced with inflation it feels like you have to do something, and this is something, so they did it.
- zeroonetwothree 4y agoPeople have been saying rates must go up for a long time but it took 10 years. That’s long enough for a bank to go out of business if they try to wait it out.