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Interest rates pause?


Manishican

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13 minutes ago, Netflixmovieguz said:

No one questioned the fed reducing the rates. Why bother now when the common man is frocking. Historical avg rates are above 2.5%. Preaching as if the rates are high as paul vocker. 
 

boA pays pennies on deposits. Why can’t they pay high to attract deposits?. Let that fall

Had fed increased steadily BoA or any other bank would have assessed it better, first fed printed ridiculous amounts of money, this money came back to the banks, SVB had 3X more deposits it had in 2019, they didn’t know how to handle so much money and hence they thought buying bonds would put them in a safe place.

Now fed, all of a sudden started raising rates and also cut money supply.

You can’t just say let them die because the consequences are much deeper than inflation, it will create a mayhem 

 

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1 minute ago, hyperbole said:

Had fed increased steadily BoA or any other bank would have assessed it better, first fed printed ridiculous amounts of money, this money came back to the banks, SVB had 3X more deposits it had in 2019, they didn’t know how to handle so much money and hence they thought buying bonds would put them in a safe place.

Now fed, all of a sudden started raising rates and also cut money supply.

 

Bro these are bigg corporations which went through several turnmoils. They have the talent experience and projections and future path. Not galli banks. Common sense to realize that policy tightening is going to happen sooner than later. Blaming fed is a easy target for the failures. 

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5 minutes ago, Netflixmovieguz said:

Bro these are bigg corporations which went through several turnmoils. They have the talent experience and projections and future path. Not galli banks. Common sense to realize that policy tightening is going to happen sooner than later. Blaming fed is an easy target for the failures. 

Agree but Problem with the fed was that all its actions were  reactionary than forward looking. Beginning of 2022, everyone thought 2-2.5 would be max Fed would be raising and fed kept on raising and by then it was already late since most of the bonds were bought during 2021 and beginning of 2022.

Even until last week they were clueless and even with today with the inflation report they don’t know what they will do on march 22nd.

 

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11 minutes ago, hyperbole said:

Agree but Problem with the fed was that all its actions were  reactionary than forward looking. Beginning of 2022, everyone thought 2-2.5 would be max Fed would be raising and fed kept on raising and by then it was already late since most of the bonds were bought during 2021 and beginning of 2022.

Even until last week they were clueless and even with today with the inflation report they don’t know what they will do on march 22nd.

 

Excessive printing. 23 months with >5% inflation. Now excessive tightening.

if we don’t bring inflation down, companies are at the risk of shrinking/falling with rising costs. One way or the other I think this will happen.

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6 hours ago, Pandubabu said:

Market asale good news kosam waiting,  ala gani chesthe DOW 1200 points 

But Cheyaru bro atleast bayataki cheparu good economy ki first condition inflation 2% being world largest economy I don’t think fed will go in that path maybe for short term  but let’s see .

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18 hours ago, desiboys said:

next credit suisse anta. dani tharuvatha bofa and major banks. 

credit suisse is on ventilators since 3-4 months already. next Lehman is credit suisse for sure

 

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