Ep 388. SVB Financial Collapse, Modern Bank Runs, and The Future of Regional Banks
Focused Compounding
00:00
Why You Shouldn't Buy Short-Term Securities
The average bank did this when rates were 1.7%. The median FOMMC member anticipated that it would need to raise rates to 2.8% by the end of 2023 and remain there through 2024. But even at that, from that perspective, they still would have been underwater on a lot of these securities. This is kind of a common way to have problems.
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