I hadn't seen Trump blamed for SVB's collapse - which resulted from rising interest rates more than anything else. Long term loans that pay lower interest than short term borrowing costs creates a liquidity crisis. But sure and predictably enough....
Betting that interest rates wouldn't go up in the short term - when Trump was president - was likely a safe bet. Betting they STILL wouldn't go up when Democrats indulged an orgy of spending over two years, well, that was a stupid bet. And then what brought SVB down was believing the Fed was poised to stop raising rates and during this year start easing rates once again. That was weapons' grade stupid.
When you have a president that you know is lying whether his lips are moving or not.....
Ha Ha! I second these thoughts. Good essay.
Life is a tragedy to those who feel, a comedy to those who think.
I hadn't seen Trump blamed for SVB's collapse - which resulted from rising interest rates more than anything else. Long term loans that pay lower interest than short term borrowing costs creates a liquidity crisis. But sure and predictably enough....
https://www.foxbusiness.com/politics/liberals-blame-trump-silicon-valley-bank-collapse-citing-2018-bipartisan-bill
How Trump’s Deregulation Sowed The Seeds For Silicon …
https://www.forbes.com/sites/mayrarodriguez...
Trump-Era Deregulation Deemed a Key Culprit in Failure …
https://www.commondreams.org/news/trump-era...
SVB invested heavily in bonds when interest rates were approaching zero! Without being hedged!!
Betting that interest rates wouldn't go up in the short term - when Trump was president - was likely a safe bet. Betting they STILL wouldn't go up when Democrats indulged an orgy of spending over two years, well, that was a stupid bet. And then what brought SVB down was believing the Fed was poised to stop raising rates and during this year start easing rates once again. That was weapons' grade stupid.