3 ms·
It's easy to forget that, in the US last spring (1) there was widespread fear of a sharp recession, and (2) Signature and Silicon Valley Bank failed within 48 h
by crmd 3y ago
It's easy to forget that, in the US last spring (1) there was widespread fear of a sharp recession, and (2) Signature and Silicon Valley Bank failed within 48 hours of each other. Many smart people who lived through the 2008 crisis were saying, "Here we go again." Yet here we are. Whatever strategy Janet Yellen and Jerome Powell did execute seems to be working.
- 303uru 3y agoIt's nearly miraculous really. Every market maker was calling for a hard recession. SVB looked like the beginnings of a bank run. Instead we are at damn near full employment, gas is cheap, the supply chain is normalizing and stock keep ticking up.
- qp11 3y agoI think back then assumption everyone made was low interest rates were the prime cause of inflation. Increasing rates to control inflation caused the bank failures. What they have realized and said since, is the high prices were not just interest rate related, but due to supply chain shocks that happened due to covid+ukraine russia+china drama etc. Once supply chains settled down as they do after the initial chaos when war starts prices started dropping. I am not an economist so take everything above with a pinch of salt.