BossBackground104

BossBackground104 t1_je0uxi4 wrote

Banks make money from fees. When rates rise, they make more money. For the past 14 years, the Fed lent banks money at zero %. Once that stops, high rates are a bank's best friend. When rates rise, the cost of goods and services fall. That's why raising rates lowers inflation. The bank failures of late, have been due to poor management, just like any other business. Whole it's nice to have stocks continue to rise, at some point your stock shares aren't worth what you paid for them, big boys will sell for profit and you will be a bagholder. So while it might be a good company and a good product, it's not worth the price. Then here comes a crash.

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