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Ep 264 Greg Foss And Guy Swann: Economic Deep Dive Round 2

Liberty Lockdown

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Adding to a Losing Trade

Mid-sized banks were being told to put their deposits in treasuries or debt instruments. The problem is, if you remember, two year and shorter bonds had no yield to them because Powell was keeping the short end of the curve. So they buy more of it and oh, Powell was wrong and then that bond price goes down more. Adding to a losing trade is always generally a bad risk management decision.

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