The Inverted Yield Curve

Banks finance, they borrow short term and land long term. They have what's called a duration risk. And therefore, if your bonus and if your pay is tied to profitability, what you will do is you will over land,. Because the profit will always go up if you're lending, even if the quality of the lending is going down. The economy of the last 10 years has been largely very low interest rates; credit driven banks are fine, well capitalized. Now we're going into another era of fragile banking systems all around the world. That I think is a huge change. It's something we have to mark and we're going to mark it today. Let's go to