#1175 Raoul Pal On Bitcoin And The 2023 Financial Crisis
The Pomp Podcast
00:00
Why Are the Banks Under So Much Stress?
Banks make business by something called the steep yield curve. They borrow at, let's say, 2% interest rates and they lend it out to the market at 5%. That's a longer term duration that they take the risk on. The issue is the yield curve got massively negative. So people are incentivized to move their deposits because the rate of interest is actually the highest we've seen for a long time.
Transcript
Play full episode
