To The Moon

It was a year ago this month that the Fed launched its rate hike to combat inflation.At first, policymakers only take 25 basis points to tackle price surges. Subsequent months saw much larger hikes, enough to raise the Fed’s benchmark borrowing rate by 4.5 percentage points to its highest level since 2007.At this 1 year anniversary, we can review these questions:what's the end of the rate hike cycle?when will Fed stop rate hikes and turn to rate cuts?what's the target rate for March?1. What’s the end of this rate hike cycle? - 5.5% is a consensusThe benchmark rate currently

Shares of $SVB Financial Group(SIVB)$ plunged 60% on Thursday, the biggest one-day drop on record.Another crypto bank Silvergate Capital gave another hit - shut down its banking operations, causing the S&P 500 Banks Index to fall about 6% on Thursday.What happened on SVB?Technology Boom - Total Deposits SkyrocketSVB is Silicon Valley Bank, and like the name, it provides banking services to many startups in Silicon Valley. It also means many startups have their bank accounts in SVB, which is the capital that SVB relies on. The second half of 2020 has seen a global funding boom for technology companies, and the rapid growth in startups loans and venture capital funding has led to a huge amount of cash and