this post was submitted on 14 Sep 2023
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Fees of up to $0.20 per install threaten to upend large chunks of the industry.

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[–] [email protected] 7 points 1 year ago (1 children)

I've read that this started with easy loan money drying up after the First Republic collapse.

[–] [email protected] 2 points 1 year ago* (last edited 1 year ago)

Easy money ending too quickly caused the First Republic collapse. Not the other way around. The Fed did a half a decade of rate hikes in a year.

Feb '22 rates were 0.08% by Feb '23 they were 4.57%. A 5700% increase in 12 months. First Republic collapsed on May '23.

An aggressive but responsible rate increase of 0.25% per quarter would have taken only 4 years to implement but would likely have led to zero bank failures.