High interest rates could be bad for climate change - the aggressive rate hiking campaign has stuck a big blow to climate change companies and projects over the last few months.
In regard to SVB...From what I've learned, SVB made a number of poor choices in organizations they backed. Maybe more crippling is that only one board member had banking background while others were added for "fashionable" reasons and decisions were based more on political agenda and the day's "what's fashionable" talk than historical business practice. Maybe a good way to sum it up is 'go woke. go broke' I expect to see more dominoes fall or rethink their corporate strategy as time goes on. On interest rates, they can make or break an economy, business or personal wealth. Generally speaking, lower rates that allow money to flow helps an economy grow. Higher rates can shrink it. While many see today's rates as high, they are really at a historical average and probably about where they need to be. Five to six percent is probably a range to stabilize things.
Those low rates allowed many marginal operations to use up resources in a less than optimal way. Some ideas are simply not economically prudent and actually dilute the market. So creative destruction is now at work. Has both good and bad effects.
In regard to SVB...From what I've learned, SVB made a number of poor choices in organizations they backed. Maybe more crippling is that only one board member had banking background while others were added for "fashionable" reasons and decisions were based more on political agenda and the day's "what's fashionable" talk than historical business practice. Maybe a good way to sum it up is 'go woke. go broke' I expect to see more dominoes fall or rethink their corporate strategy as time goes on. On interest rates, they can make or break an economy, business or personal wealth. Generally speaking, lower rates that allow money to flow helps an economy grow. Higher rates can shrink it. While many see today's rates as high, they are really at a historical average and probably about where they need to be. Five to six percent is probably a range to stabilize things.
Those low rates allowed many marginal operations to use up resources in a less than optimal way. Some ideas are simply not economically prudent and actually dilute the market. So creative destruction is now at work. Has both good and bad effects.