Why Silicon Valley Bank's crisis is rattling America's biggest banks
The struggles of SVB Financial are spooking investors across the banking world, highlighting the new risks posed by rising interest rates.
Gotta start small if you're going to go for big change.
- Thread starter Jubee
- Start date
When a billionaire buys a 100 million dollar boat he does not pay for it. He keeps is money, takes a loan out of a bank backed by his assets. Then rent the boat when he does not use it to pay the loan and operating fees.
Peanuts.
But what if interest rates are up. His own assets gets down, loan increased and renting gets less to no revenue.
Apply similar logic to millions of people living on debt...
A 2008 scenario collapse or worst is coming in front of us.
Peanuts.
But what if interest rates are up. His own assets gets down, loan increased and renting gets less to no revenue.
Apply similar logic to millions of people living on debt...
A 2008 scenario collapse or worst is coming in front of us.
