I mentioned it the other day in my article that the increase of the Fed Fund rate has been the most aggressive in all history. And they are crashing the economy. It’s too fast a too quickly and it creates problem for banks who do not have enough time to adjust their portfolio. So bank who took too much risk or are heavily invested in more sensitive sectors like venture capital and technology, have to deal with greater loss. Check out my previous article. The Fed is just too aggressive a is basically throwing a wrench in the Financial system wheels. Banks do not have the time to adjust and are force to sell their Bonds before maturity and incur a loss on them as well as the higher rates force them to sell at a much lower price.
SVB Panic, Bad Bank of Bad Fed?
SVB Panic, Bad Bank of Bad Fed?
SVB Panic, Bad Bank of Bad Fed?
I mentioned it the other day in my article that the increase of the Fed Fund rate has been the most aggressive in all history. And they are crashing the economy. It’s too fast a too quickly and it creates problem for banks who do not have enough time to adjust their portfolio. So bank who took too much risk or are heavily invested in more sensitive sectors like venture capital and technology, have to deal with greater loss. Check out my previous article. The Fed is just too aggressive a is basically throwing a wrench in the Financial system wheels. Banks do not have the time to adjust and are force to sell their Bonds before maturity and incur a loss on them as well as the higher rates force them to sell at a much lower price.