- Newsbite - Analysis
According to one statistic, inflation slowed to 6% this February, compared to 6.4% in January of this year.
Although inflation is still riding high, a complete 4% above the Fed's target rate, Tuesday's news reports are hailing this as a win for the Fed's economic policies and rate hikes.
Ironically, the same kind of action that is slowly slowing inflation is also causing the price of existing Federal bonds to crash, which Silicon Valley Bank was heavily invested in.
Economists and market analysts have argued that it was unwise for that Bank to invest so heavily in bonds, knowing that the fed has been regularly hiking up interest rates.
In an interesting Tweet, "Shark Tank" star Kevin O'Leary shared his take on why Silicon valley bank imploded.
"The combination of a negligent board of directors @SVB with idiot management is the potent cocktail that led to a disastrous outcome. Why should taxpayers bail them out?"
"The lesson is simple, never put more than 20% of your liquid assets in any one financial institution," he added.
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