Thread

Fed hikes rates as inflation worries push up bond yields

184 points · 250 comments · wslh

lenerdenator · 1789587535 · focus · HN ↗
Should have been this high years ago.
The country - particularly this industry, information technology - got addicted to cheap cash. Worse, people didn't want to pay any of it back in tax, so bond yields are going to go up on the debt that was issued to cover deficit spending.
Should be interesting to see how this impacts the AI hyper-scalers. They were already burning through cash like a furnace and were running out of people to borrow from, thus the IPO hopes.
1. ojbyrne · 1789588580 · focus · HN ↗
  "years ago" seems like the wrong criticism. Today's rate is lower than the rates from December 2022-October 2025. That seems like years ago.
  1. lenerdenator · 1789592773 · focus · HN ↗
    Let's say pre-COVID.
    MarkusQ · 1789663591 · focus · HN ↗
    That (the ZIRP period) was the anomaly; this is (historically) normal.
    lenerdenator · 1789763387 · focus · HN ↗
    That's my point. ZIRP never should have happened.
    Now we have a bunch of people who think that ZIRP was the norm. The industry's full of people who would not, and could not, have made their fortunes if they had to have gone to a bank to get another loan at 5% to make companies like Uber work. At some point, the answer would have been no, and they'd be just like every other failed business person instead of a member of the Cult of the Founder.

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