4 ms·
> So Fed's rate rise provided a windfall for those holding government bonds, furthering inflation. Silicon Valley Bank was insolvent because the value of their
by quickthrowman 3y ago
> So Fed's rate rise provided a windfall for those holding government bonds, furthering inflation.
Silicon Valley Bank was insolvent because the value of their government bonds declined so much after the Fed started raising rates. They were taken over by the FDIC after this came to light and the bank no longer exists. I find it hard to characterize that as a windfall.