American Economics Thread
- Thread starter Bernard
- Start date
I just had the most random and spontaneous thought. Are all the American layoffs and the whole fiasco with SVB and those other banks caused by how badly the tech trade war went for them? Like a delayed effect of sorts?
My gut instinct tells me that's exactly what caused those things to happen. The tech trade war was lost and the effects only felt after some time because you can still financially maintain an illusion unlike in a real war.
My gut instinct tells me that's exactly what caused those things to happen. The tech trade war was lost and the effects only felt after some time because you can still financially maintain an illusion unlike in a real war.
No.
It's really just, mostly, from the Fed raising rates.
Apart from that, there's ofc what financial decisions SVB and those banks made (which you can blame on loose financial regulations).
Yeah, agree.
Then again, this is what I think I remember what happened last time.
The Fed started to raise rates, and those mortgages being paid by minimum wage workers, were not being paid anymore. That systemic risk, started to reverberate through the entire system.
Sure, the Fed raised rates. And those mortgage financial instruments, were overextended.
So how overextended are they this time, and where?
Not sure we can answer that.
Also, it was the pandemic, and how much money they pumped into the system, probably creating a few zombie companies along the way, who now need to pay those higher rates if they want more money.
I guess it is the same word, overextended, just applied differently this time, and should be another context, or perhaps industry.
