Alternative Visions - Silicon Valley Bank Collapses—Canary in the Financial Coal Mine?
Alternative Visions - A podcast by Progressive Radio Network - Mondays
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Dr.Rasmus discusses the collapse of the Silicon Valley Bank in California in last 24 hrs and what it means for the Tech sector and potential financial instability. Stocks & bond mkts plummet in response. Fear of uncertain contagion effects over the weekend. 250 companies with potential asset losses + SVBs largest investor: US Home Loan Bank (yes, believe it or not). What SVB and financial instability means for the Fed’s rate hike policy, as rates get pushed to 6% now. Why Fed won’t continue to hike rates to 6% if financial instability happens. And if so, why Fed rate hikes won’t be sufficient to reduce even Demand inflation. Today’s jobs report shows another 311,000 jobs, making rate hikes more likely. Rasmus shows, however, most jobs are part time service while layoffs in tech, transport, warehouse already rising. Why contradictions in economic policy are intensifying and hard landing recession more likely.
