Why 3 US banks collapsed in 1 week: Economist Michael Hudson explains
Geopolitical Economy Report
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What Happened to Long-Term Government Bonds?
As the Federal Reserve raised interest rates, that meant the value of these long-term bonds, the market price steadily fell. Silicon Valley bank and other banks throughout the system have been carrying all of their long-term mortgage loans at the price they paid for them. And so they figured, well, we can ride this out and hold it to maturity in 25 years. One is nobody in the next 25 years actually withdraws their money from the bank. It's only when bank customers and depositors pull their money out that they decide: Wait a minute, now in order to raise the cash to pay the depositors for the money they're taking out, we have to sell these bonds that
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