RowPuzzleheaded3590

RowPuzzleheaded3590 t1_jdpilas wrote

Rate increases usually dramatically improve bank finances. They are going belly up right now because they were forced to take on low interest treasuries at suppressed rates for a decade then the fed clicked an undo button in record speed before they could rebalance and unwind.

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RowPuzzleheaded3590 t1_j6or7oi wrote

Yes. And there’s several models that suggest recession is either happening or imminent.

But the fed is still hiking to cause unemployment so they can rug pull the economy and the rich can buy everything up, then drop rates for the wealthy to refinance the debt cheaper. And so US gov doesn’t have high treasury interest rates

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