Ioana Neamțu, Umang Khetan, Jian Li and Ishita Sen What do the 2023 Silicon Valley Bank collapse and the 2022 UK pension fund crisis have in common? Interest rate risk. Several sectors in the economy run significant asset-liability mismatch that makes them vulnerable to rapid interest rate changes: pension funds and insurers have short-term cash … Continue reading Sharing interest rate risk: who is trading and what affects the costs?
Banks
The Nation’s banks have called on the Albanese Government to relax the laws around selling human organs in order to allow people to afford the latest interest rate rise. ”The Government needs to do all it can to allow us... Read More ›
Opposition leader (for now) Peter Dutton has demanded that Indigenous Australians apologise to the Nation’s mortgage holders over the rise in interest rates seen over the last year. ”Before we started talking about the Voice interest rates were low and... Read More ›
By Ralph Nader Once again, government socialism – ultimately backed by taxpayers – is saving reckless midsized banks and their depositors. Silicon Valley Bank (S.V.B) and Signature Bank in New York greedily mismanaged their risk levels and had to be closed down. The Federal Deposit Insurance Corporation (FDIC), in return, to avoid a bank panic […]
The post Ralph Nader: Reckless Capitalist Banks Rescued by Government Socialism—Again! appeared first on scheerpost.com.
The Federal Reserve is not working for the people but for wealthy individuals and corporations that can afford to have a say in the rules.
The post Private Opulence and Public Squalor in the US appeared first on scheerpost.com.
By Ellen Brown / Original to ScheerPost On CNN March 14, Roger Altman, a former deputy Treasury secretary in the Clinton administration, said that American banks were on the verge of being nationalized: What the authorities did over the weekend was absolutely profound. They guaranteed the deposits, all of them, at Silicon Valley Bank. What […]
The post Ellen Brown: Banking Crisis 3.0: Time to Change the Rules of the Game appeared first on scheerpost.com.
By Dean Baker / Beat the Press (CEPR) An item in Ezra Klein’s NYT column yesterday really grabbed by attention. Ezra cited a Wall Street Journal column that claimed that the Federal Reserve Board’s stress tests would not have detected Silicon Valley Bank’s (SVB) problems, because its stress tests did not consider interest rate risk. This struck me as […]
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The lockdowns and the stimulus required to keep the economy alive helped drive inflation. Then the Fed jacked up interest rates. And all hell broke loose. On Friday March 10th, 2023, Silicon Valley Bank (SVB) died of Covid. Alright, it’s a little more complicated than that, but Covid lockdowns followed by massive government stimulus were a critical – and massively under-acknowledged – factor in propelling the bank’s demise. At the heart of the crisis is the gigantic pile of low-interest […]
The post How Covid lockdowns primed the current financial crisis appeared first on The Grayzone.
By Ellen Brown / Original to ScheerPost On Friday, March 10, Silicon Valley Bank (SVB) collapsed and was taken over by federal regulators. SVB was the 16th largest bank in the country and its bankruptcy was the second largest in U.S. history, following Washington Mutual in 2008. Despite its size, SVB was not a “systemically […]
The post Ellen Brown: The Looming Quadrillion Dollar Derivatives Tsunami appeared first on scheerpost.com.
Support my work via Patreon The collapses of Silvergate and Silicon Valley Bank are like icebergs calving off from the Antarctic glacier. The financial analogy to the global warming causing this collapse is the rising temperature of interest rates, which spiked last Thursday and Friday to close at 4.60 percent for the U.S. Treasury’s two-year Continue Reading
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