The Risks of Lending for 30 Years

Banks don't have 30-year deposits to play with, okay? They don't have those liabilities. When a bank holds checking account deposits and you get your checks for free, so you're supposed to be so happy about that, when in fact they pay you a zero deposit rate on that. So this is what happened. It was a flush of an influx rather of money because of the stimulus checks and everything. But that money was not stable. And then you couple that with poor risk management at the banks called their interest rate gap,. Okay, man, oh man, that just was an ugly scenario.