Re:Savings and Loan Crisis 1980–1989
by hn_throwaway_99 on Monday May 01, 2023 @02:49PM
(#35777319)
> So we have banks failing due to shock at the recent rate rises but the recent rate rises haven't actually been that extreme or fast.
This is just patently wrong. I guess "extreme" is an opinion, but the speed at which they've raised rates is the higher than (debatedly, depending on the metric you use) any time in history, certainly any time in many decades.
And the thing that makes these rate raises more impactful is the fact that we were starting from near 0. Take a look at this 5-year treasury rate graph: https://www.macrotrends.net/2522/5-year-treasury-bond-rate-y.... If you held a 5 year bond at the low of 0.26% in Sept 2020, the decrease in value that bond would incur between then and now due to the rise in rates is worse than practically any other ~30 month period shown on that graph.
This is just patently wrong. I guess "extreme" is an opinion, but the speed at which they've raised rates is the higher than (debatedly, depending on the metric you use) any time in history, certainly any time in many decades.
And the thing that makes these rate raises more impactful is the fact that we were starting from near 0. Take a look at this 5-year treasury rate graph: https://www.macrotrends.net/2522/5-year-treasury-bond-rate-y.... If you held a 5 year bond at the low of 0.26% in Sept 2020, the decrease in value that bond would incur between then and now due to the rise in rates is worse than practically any other ~30 month period shown on that graph.