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SVB also did not have "worthless assets", but the extreme rate hikes by the Fed significantly reduced its value. Wait until tightness of credit conditions will
by fuoqi 4y ago
SVB also did not have "worthless assets", but the extreme rate hikes by the Fed significantly reduced its value. Wait until tightness of credit conditions will cause chain of defaults and we will see how well banks will fare. We already see the first signs of it in the auto loans market.
- Retric 4y agoSVB was offering both extremely high interest rates and suffered a bank run. Thus they both really messed up and happened to get punished, but it really doesn’t reflect the wider banking system.