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submitted 5 days ago by [email protected] to c/[email protected]

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[-] [email protected] 15 points 5 days ago

Total unrealized losses of $413.2 billion decreased $67.5 billion (14 percent) from the prior quarter. Longer-term interest rates such as the 30-year mortgage rate and the 10-year Treasury rate decreased in the first quarter, increasing the value of securities reported by banks and lowering unrealized losses. However, increases in longer-term interest rates since the end of the first quarter would likely reverse most of these improvements in unrealized losses if measured today.

This part doesn't make sense to me. Why would lower long term interest rates increase the values of securities? Is it because people would pay a higher premium for securities locked in with a (example) 5% face value interest if the broader economy had (example) 3% interest?

I mean ok, that kind of does make sense to me. But then this really makes me wonder why the hell the feds aren't cutting interest rates, even at the expense of the banks and the government. Who is even benefiting from the high interest rates?

[-] [email protected] 18 points 5 days ago

People with lots of money benefit from high interest rates, and they're an important weapon in class warfare. Higher interest rates push more people into accepting worse labour conditons.

[-] [email protected] 13 points 5 days ago

Who is even benefiting from the high interest rates?

People with lots of liquid capital. They can lend money to the rest of us without money using those high interest rates to figure out how much they can make off of us poor folks.

[-] [email protected] 7 points 5 days ago

People riding out the SAVE student loan forbearance benefit from higher rates on cash and cash equivalents

this post was submitted on 31 May 2025
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