Hundreds of thousands of people out of work are threats to curry favor. VC's and businesses who deposited $175B into SVB have likely taken 5 - 20% losses on that. There are offers for 80% of deposits immediately and bridge loans to pay payroll for the foreseeable future until a couple months down the line when whatever left of the deposits is distributed back.
Do you advocate for immediately cutting Federal Funds interest rate? Because if not, every quarter point increase will cause thousands of people out of work. Every interest rate increase slashes the value of current assets, leading to try to "cut fat" to recoup value, just like what happened here, and because it's a bank, the wealthy see the opportunity to earn back their $10b - $20b loss by threatening the Federal Government.
Do you advocate for immediately cutting Federal Funds interest rate? Because if not, every quarter point increase will cause thousands of people out of work. Every interest rate increase slashes the value of current assets, leading to try to "cut fat" to recoup value, just like what happened here, and because it's a bank, the wealthy see the opportunity to earn back their $10b - $20b loss by threatening the Federal Government.