Isn’t what happened to SVB The natural consequences of raising rates? What did the fed expect would happen while raising interest rates? Is the goal to bail out all entities except for consumers?
Per the article below, “Diamond Sports Group, the largest owner of regional sports networks, filed for Chapter 11 bankruptcy protection on Tuesday. The move came after it missed a $140 million interest payment last month.”
Will this company also be bailed out?
This may be a rookie question, but I don’t understand what the FED is seeking. They say that in order to stop inflation, they need to raise interest rates and that will effect average consumers negatively in regards to unemployment. However, when they get what they asked for with a bunch of start up’s and a bank going under, they bail them all out. Are they simply picking who they want to see fail? If so, who needs to fail for them to reach their goal?
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