The Inflation Reduction Act...Aftermath...

[JoeB131]

Well, it caused inflation so they had to raise interest rates, which caused the bonds that the banks owned to become worthless, and now the banks are collapsing as a result. Once again our prediction was right and you dems were wrong.

Not really.

What caused SVB to collapse is that Trump signed a law exempting banks with less than 250 Billion in assets from Dodd-Frank. Add to that some risky loans, and some panicky investors, and you had a bank that required Federal intervention.

So, no, it's not 2008, as much as you want it to be.

 

[Godboy]

Not really.

What caused SVB to collapse is that Trump signed a law exempting banks with less than 250 Billion in assets from Dodd-Frank. Add to that some risky loans, and some panicky investors, and you had a bank that required Federal intervention.

So, no, it's not 2008, as much as you want it to be.

No, the Fed raised the interest rates to battle inflation, which caused the older bonds that had been negotiated by the banks during better times to become worthless. This caused a run on the banks.

 

[JustAGuy1]

Does your doctor know you are off your medications?

No wonder you live alone, you're an ill educated asshole.

 

[JoeB131]

No, the Fed raised the interest rates to battle inflation, which caused the older bonds that had been negotiated by the banks during better times to become worthless. This caused a run on the banks.

Not really... One failed back does not a bank run make.

 

[Godboy]

Not really... One failed back does not a bank run make.

Youre just saying random words now. Stop denying the obvious. Infalation caused the Feds to raise rates, the old bonds became worth 50% what they once were, then a run on the banks occurred. Its happening at multiple banks now.

 

[JoeB131]

Youre just saying random words now. Stop denying the obvious. Infalation caused the Feds to raise rates, the old bonds became worth 50% what they once were, then a run on the banks occurred. Its happening at multiple banks now.

Actually, no, it hasn't. It happened to Signature Bank, which deals in Crypto and not common sense, and it happened to Silicon Valley.

THe real problem here is these smaller banks were able to get into risky behavior because they got an exemption from Dodd-Frank with the 2018 reform.