BlackSky2129 t1_jed2yrh wrote on March 31, 2023 at 3:14 AM

Reply to comment by DYTTIGAF in We did it everyone. by TendiesForTheBoys

The Feds, in mid 2021, said they had NO INTENTIONS of raising rates and inflation for transitory. Then over the next 12 months, they go 180 and raise rates from 0 to 450bps (unprecedented and much more than Volker’s 2x increase in rates).

So do you really blame them for not listening to what the Feds say

DYTTIGAF t1_jed4ckg wrote on March 31, 2023 at 3:26 AM

I sat looking at my computer screen in November 2021. Just as Powell said the Federal Reseve was going to be raising rates and pivot from their "transitory" viewpoint on inflation.

I have been locked in for the last 14 months. Each day watching this policy change in action. It's not brain surgery. It's simple stuff.

Please don't be an apologist for a bunch of twits in Silicon Valley who failed to make the most basic attempts at hedging a multibillion bond position.

Why? When they saw they needed money they approached Goldman Sachs as the savior to buy the long bond position (at market valuations) as well as to float a share issue (to make up for the lost principle value on their balance sheet).

A bunch of VC's got wind of the deal and jumped on Twitter...and the game was over.

This was 3rd grade mis-management by the bank who was more concerned about social governance nonsense than being good stewards of other people's money.

BlackSky2129 t1_jed6mbd wrote on March 31, 2023 at 3:46 AM

> November 2021

You literally proved my point. The Feds went from no raise in the foreseeable future in AUGUST ‘21 to yeah everything I said was false 2 MONTHS LATER.

DYTTIGAF t1_jed90wj wrote on March 31, 2023 at 4:09 AM

How old do you think these executives were 12 years old?

Seriously are you trying to argue these morons spent 14 months looking at screens wondering what to do about a billion dollar wealth destruction....and they didnt have the competency to do anything about it?

Spins13 t1_jef48hw wrote on March 31, 2023 at 3:38 PM

Yes the risk manager was a token girl who was doing woke conferences… instead of you know managing risk