After the crash of Silicon Valley Bank, the reason for the crash was blamed on the raising interest rates of Treasury bonds. Because SVB was holding lots of bonds with a lower interest rate from previous years, those bonds were valued below par, and because of a bank run they had to sell them at those prices.
The fear was that more banks would get in trouble with more interest rate hikes.
And the Federal Reserve gave into that today. Which is a weak move by the FED.
Especially because Silicon Valley Bank just wasn't diversified enough in its assets. And they had to little reserves. That's the real reason why Silicon Valley Bank went down, and of course the bank run killed them completely.
Inflation is still the big issue the world economy is troubled with. And by this weak move, inflation gets free play... This is really disappointing for me. The markets will love it, but for the people in Main Street this is very bad news. The prices of groceries and other necessary items will keep on rising. But their wages won't a the same rate. So people will keep on getting poorer and poorer, especially the lower and middle class. The elite once again will get richer by this move, as the stock markets will love it, and their money is there!
I recommend people to keep on putting money in Hive Backed Dollars savings, at least they will beat inflation with the interest they are getting on HBD.
And of course Hive at these prices is of course also a great investing opportunity!
Sincerely,
Pele23
