The Dollar Network Effect and the US Financial System

The Fed created this whole mess because they ran QE for two years and kept interest rates pinned for the last seven years. And so all these commercial banks were plowing money into government securities, MBS, you know, CMBS at record low interest rates. Most of these deposits are from small US tech startups, which is basically what I work with. A lot of these companies have a huge amount of cash at a single bank just to fund their operations. So no wonder when the Fed begins the fastest hiking cycle in history, taking the Fed funds rate up 500 basis points in the space of 19 months, you're going to have some banks blow up.