“Now we know: the world cannot sustain high interest rates”

The current banking crisis in the United States is a direct consequence of increasingly high interest rates, which can also lead to lower interest rates, writes Andreas Cervenka of Aftonbladet in an analysis. Among other things, rising interest rates have caused the value of bonds to decline. And since Silicon Valley Bank, which collapsed and closed its doors last Friday, invested its customers’ money in bonds, rising interest rates have led to significant losses.

Cervenka also says that with the US banking crisis, we have now received an answer on whether the world can withstand last year’s rapid rise in interest rates: “A resounding no.”

Ekot economics commentator Kristian Åström explains how pension company Alecta’s multibillion-dollar losses at the two failed banks in the United States are affecting Swedish savers. He points out, among other things, that Alecta manages more than 1,000 billion SEK, much more than the 12 billion invested in Silicon Valley Bank and Signature Bank. So, “this means absolutely nothing for Swedish professional retirees,” he believes.

Alexander Norén, SVT economic commentator, believes that the technological crash has now reached the banks and that fingers must be crossed that the crisis does not become too serious if individuals and countries cannot cope with the rapid rise interest rates.

Binnie Hale

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