this post was submitted on 14 Sep 2023
676 points (98.4% liked)
Technology
59201 readers
3099 users here now
This is a most excellent place for technology news and articles.
Our Rules
- Follow the lemmy.world rules.
- Only tech related content.
- Be excellent to each another!
- Mod approved content bots can post up to 10 articles per day.
- Threads asking for personal tech support may be deleted.
- Politics threads may be removed.
- No memes allowed as posts, OK to post as comments.
- Only approved bots from the list below, to ask if your bot can be added please contact us.
- Check for duplicates before posting, duplicates may be removed
Approved Bots
founded 1 year ago
MODERATORS
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
I've read that this started with easy loan money drying up after the First Republic collapse.
Easy money ending too quickly caused the First Republic collapse. Not the other way around. The Fed did a half a decade of rate hikes in a year.
Feb '22 rates were 0.08% by Feb '23 they were 4.57%. A 5700% increase in 12 months. First Republic collapsed on May '23.
An aggressive but responsible rate increase of 0.25% per quarter would have taken only 4 years to implement but would likely have led to zero bank failures.