I just read that “some say” the Fed will ease the pace of interest rate hikes because the effect that bond rates (which mysteriously link to the Fed Interest rates) added to the now legal (after the Tr$mp relaxing of Dodd-Frank) SVB cash-poor situation that, when a cash run on the bank by depositors happened, it caused the bank to fail.
Needless to say, as has happened before, the government stepped in and will guarantee the deposits using our tax dollars to socialize the risk of the bank’s risky private policies and investments. So far I’ve not heard a peep about “Socialism” from any of the usually reliable “conservative” sources — the same ones who are still spitting bullets over the College Loan Forgiveness plan that the Biden administration pushed for.
All that drama is expected in the USA.com world. The gem I focused on was that the failure of a large bank was due to the rise in interest rates applied by the Fed to “drive down Inflation” in the marketplace. Expressly at the expense of the Labor market. They were looking for a higher Labor unemployment rate to signal that their interest rates are high enough. Basically, if the workers are impacted enough to NOT want to spend their wages on products and businesses are reluctant to hire workers.
As we all remember, the start of the inflation blowup was the “end” of COVID combined with the beginning of the invasion of Ukraine which spiked international oil prices after the Russian Petro sanctions were placed. I recently read that AramCo, the Saudi oil company, declared staggering profits for last year as did our own American Petro Companies. It seems that, like Tr$mp and CBS, Oil Prices may have been bad for Americans but we’re very good for the Companies.
Anyone else recognize a pattern here? Hahaha, just kidding. Anyone want to elect people like Sen Warren and Rep Porter to DO something about it?