Astronomers have found an extra-low hum rumbling through the universe. The discovery, announced today, shows that extra-large ripples in space-time are constantly squashing and changing the shape of space. These gravitational waves are cousins to the echoes from black hole collisions first picked up by the Laser Interferometer Gravitational-Wave Observatory (LIGO) experiment in 2015. But whereas LIGO’s waves might vibrate a few hundred times a second, it might take years or decades for a single one of these gravitational waves to pass by at the speed of light. The finding has opened a wholly new window on the universe, one that promises to reveal previously hidden phenomena such as the cosmic whirling of black holes that have the mass of billions of suns, or possibly even more exotic (and still hypothetical) celestial specters.
- Date Posted:
- June 29, 2023
While we may have turned the corner on inflation, it continues to prove much “stickier” than most market watchers expected. As of this writing, inflation was around 5% annually, still way above the Fed’s 2% target. In our view, that means higher rates for longer, and an elevated cost of capital through the remainder of 2023 and well into 2024. The increase in borrowing costs since SVB failed corresponds to a 200-basis-point Fed hike for regional banks and a 50-basis-point increase for large banks. Weighing these estimates together using the shares of loans and leases accounted for by small and large banks, respectively, gives an economy-wide Fed tightening equivalent of a bit more than 100 basis points for the entire banking sector.