“We need to keep raising rates until something breaks and inflation eases”
<Something breaks>
“Wait wait no, not that thing.”
It’s very important that inflation is brought into check by poor people losing their jobs. Not rich people losing their deposits.
NEW Banking Crisis In One Chart, Inflation=Fed Rate Hikes=Treasury/MBS Duration Increases=Bond Loss
So, the Biden Administration made a horrible error by guaranteeing deposits at Silicon Valley Bank for deposits over $250,000. Essentially, Biden bailed out big tech that kept their deposits at SVB.
In New York City, a $100,000 salary feels like $36,000, per Bloomberg.
— unusual_whales (@unusual_whales) March 16, 2023
New York Times: “Low Rates Were Meant to Last. Without Them, Finance Is In for a Rough Ride.”
h/t EwokTusk
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