The Federal Reserve's Decision to Rake Interest Rates

The Federal Reserve decided and announced that it was going to begin raising interest rates from 0% to 4%. When interest rates go up, the price of bonds go down. Just about every bank in the country moved into a negative equity position because all the banks have made fairly long-term loans. Now that means that if you're a bank and you have depositors and your assets are reduced in market price by 40%, what are you going to do? That's not reduced. You have negative equity.