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Interest rates pause?


Manishican

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9 minutes ago, Manishican said:

Fed may stop raising interest rates because of svb collapse.  What will happen to inflation ? 

pause cheste sankanakipodam kayam

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1 hour ago, ismartganesh said:

better to have a deep recession than severe inflation. konni banks poyina emi kadu. 

Lol..dollar minge poina taruvata deep recession endi depression vastadi, andaru naki potaru. Already banks $600 billion under water, liquidity is what runs the market, market lo money leka pote it will be an uncontrollable domino. Already happened in 2008 and don’t want it again

it takes months to feel the effects of interest hikes, fed reactionary ga penchukuntunu pote chala SVB Lu choodali and anni sarlu Fed bailout cheyadu ..basically companies who pay salaries and bank with these banks will go kaput 

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I went through BofA 10k this weekend and financials. 110B in unrealized losses on their long term holdings
 

if BoA is in such situation imagine 7000 other small banks in US, if they let another fail there will be a bank run and huge chaos on the streets, no big or small bank will be able to survive a bank run.

any bank has 20-30 operating cash and rest are parked in bonds and loans, and breaking bonds will cost them money as they will have to realize losses, small banks are more susceptible because there user-base is limited and not as diverse as big banks

the situation will be go in a cycle, people lose jobs and there will be more fore closures and that too after inflated loans that banks offered in the last 3 years

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7 hours ago, Manishican said:

Fed may stop raising interest rates because of svb collapse.  What will happen to inflation ? 

Dont worry, its a small brake between Fasak

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12 minutes ago, Manishican said:

Job market cool avvuthe real estate market kuda cool avvudhi

Not directly proportional— may 100% job market cool ithe 50% real estate cool—large scale institutional investor companies ki farak padadu job market cool ithe they buy and rent

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