Silicon Valley Bank Failed- Whose Next?
The party has started, just like many of us have warned. You can’t keep raising interest rates after a decade of near 0% and expect everyone will just be fine.
Silicon Valley Bank is the first one to collapse, I assume first of several before Fed steps in and back stops banks. More on that in a minute, here is the latest
Question to think about, if banks continue to fail, they will pull down hedge funds and family offices with them.
“A $200 billion bank should not fail because of liquidity,” says the former head of the Boston Fed. He says they should’ve been sold last weekend.
Here is the fun part:
Ok do the math on this, they backstop aka bail out banks, but who will bail out the small businesses and American people who also barely holding on from aggressive interest rates and inflation?
No one…
Beautiful isn’t it. They call this democracy.
By the way, how much you think they will raise rates by next, 50bps or more?
Food for thought…
That’s it for now!