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0 pointshnfong3y ago0 comments

> The Fed gave plenty of warning that they would raise rates.

In 2022. Up till the end of 2021, they kept saying inflation is "transitory". According to reports SVB bought a bunch of 10 year MBS in 2021.

SVB is obviously incompetent in believing in that Fed BS about transitory inflation -- wait but should they have believed in the rate hikes as well then?

0 comments

noelsusman3y ago

If your solvency as a bank relies on you accurately predicting inflation and/or fed rate decisions then something has already gone terribly wrong.

j / k navigate · click thread line to collapse

0 pointshnfong3y ago0 comments

> The Fed gave plenty of warning that they would raise rates.

In 2022. Up till the end of 2021, they kept saying inflation is "transitory". According to reports SVB bought a bunch of 10 year MBS in 2021.

SVB is obviously incompetent in believing in that Fed BS about transitory inflation -- wait but should they have believed in the rate hikes as well then?

0 comments

noelsusman3y ago

If your solvency as a bank relies on you accurately predicting inflation and/or fed rate decisions then something has already gone terribly wrong.

j / k navigate · click thread line to collapse