Silicon Valley Bank Collapse "Second-Biggest" in U.S. History

Discussion in 'Business & Economics' started by Tiassa, Mar 10, 2023.

  1. Saint Valued Senior Member

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    Now rich people who can keep money in fixed term deposit can earn lots of interest.
    They become richer.
    Poor people have to pay more interest to their mortgage loans and become poorer.
     
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  3. Seattle Valued Senior Member

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    So what?
    Poor people who keep money in fixed term deposit can earn interest and rich people who have mortgage loans may pay more in interest. Anyone with a fixed mortgage will be the same.
     
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  5. billvon Valued Senior Member

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    Agreed. But if you are already living there (in, say, a crappy apartment with 3 other people) starting a plumbing business there may be your only way to make that happen.
    Sure. And those same people would probably be better off in another country. And you can push that as well if you like.

    For every complex problem there is a solution that is simple, obvious - and wrong.
     
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  7. Seattle Valued Senior Member

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    You can also grasp at straws and make any hypothetical situation impossible to solve.
     
  8. Saint Valued Senior Member

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    Poor people have no money to keep in fixed term deposit, small amount of money won't earn significant interest.
    Rich people will become richer.
     
  9. Seattle Valued Senior Member

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    The principle and proportion are still the same.

    Of course rich people will become richer. An average person will make money. Poor people are poor. What doesn't that has to do with anything though?
     
  10. Saint Valued Senior Member

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    Fed increased rate hurt small businesses and normal low income people, APEC+ reduce output caused oil price to go up, how can FED bring down inflation?
     
  11. Seattle Valued Senior Member

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    They don't have that many tools so it's likely to be further rate hikes. Before the OPEC reduction if was starting to look like a pause in rate hikes was likely. That's less so the case now.
     
  12. Saint Valued Senior Member

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    Is it possible rate hike until 7~8%? Borrowing will be difficult.
     
  13. candy Valued Senior Member

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    We do need to consider finding a better model.
     
  14. Seattle Valued Senior Member

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    Good luck

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  15. RainbowSingularity Valued Senior Member

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    the rate hike is to make borrowing more difficult
     
  16. sculptor Valued Senior Member

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    It has been estimated that the FED's rate hikes will cost over one million jobs.

    (Thoughts of riding with a driver that stomps the gas, then stomps the brakes---then the gas then the brakes---repeat)
     
  17. Tiassa Let us not launch the boat ... Valued Senior Member

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    It is estimated that executives who don't want to give up presupposed bonuses will sacrifice over a million jobs in order to offset the Fed's rate hikes.
     
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  18. billvon Valued Senior Member

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    People who have mortgages tend to get richer, since real estate is a great investment.

    It's mostly people paying rent who get poorer.
     
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  19. Saint Valued Senior Member

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    More and more countries will trade without using US Dollar.
    US dollar will lose its dominance soon.
     
  20. Seattle Valued Senior Member

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    That is what American has become actually. We don't live within our means, the system breaks, the government creates a "program" to hand out money in one way or the other to fix the most immediate problem while never fixing the problem.

    School loans are too high, then just forgive them, you've screwed up banking with conflicting regulations, bail out the banks, unions screwed up the auto industry then bailout the auto industry.

    We're past the point of being able to pay our debt. There isn't enough money in the world. All that is left is to continue deflating the currency until we get hyperinflation. It sounds crazy but that's the path that we are on and it's the only way that it can go.

    No one is "special". "You" don't deserve a "living wage". You get what you deserve. If you can't live on it, worker harder or smarter. Preferably smarter.

    If you aren't making enough money as a "life coach", sell life insurance. It sucks but you will be able to support yourself and soon you will figure out how to do something that society values that doesn't suck as much.

    That's the way of the world before all the systemic distortions. Or just go for central planning, equality, and stand in line for bread.
     

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