Silicon Valley Bank unmasks the hypocrisy of libertarian tech bros

Re:Silicon Valley Bank unmasks the hypocrisy of libertarian ... by gizmo on Wednesday March 15, 2023 @11:02AM (#35169382)

Banks generally do well in higher interest rate environments. It's in a ZIRP climate that banks struggle. By kicking the can down the road banks can use the profit they're making from the business they do today to pay off the dumb debt they acquired in the past couple of years.

In the US alone banks are underwater to the tune of 650bn (that we know of). It will take a while to pay off.

The banks might get an outright bailout -- it wouldn't be the first time -- but nobody wants that. Not Powell, not Yellen, not Biden, and certainly not you or me.

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Re:Silicon Valley Bank unmasks the hypocrisy of libertarian ... by runeks on Thursday March 16, 2023 @03:35PM (#35187167)

> Banks generally do well in higher interest rate environments.

It’s not about a high vs low interest rate environment. It’s about a falling versus rising interest environment. In a rising interest rate environment, a banks bond holdings is continually losing value.

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