
sr20230504_Money
Divine Intelligence, etc
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The Fed and Pandemic QE
As the treasury yield is going up, those folks can switch from bank deposit to treasury's and get a big pickup and rate. So basically the government and the central bank are sucking the money out of the banks potentially into into treasuries when that happens. But the other thing is, you know, what looked to me is, and you saw this in Silicon Valley bank and you're seeing it in first republic, this is a bank that can be plucked. Right. The short sellers have made a fortune plucking it. And it doesn't take much in a environment like this.
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