Is the Fed Backstop Good for Liquidity?

I think it's negative for liquidity just because these regional banks were typically further out on the risk curve in terms of providing lending to businesses. So there are and now these banks are going not going to lend as much. And their depositors are going to demand that they're going to be more restrictive. It's dead off of holding the safest shit ever. They mistimed it, right? They played the yield curve wrong. There was a run on their bank and that sucks.

Transcript

Play full episode

The AI-powered Podcast Player

Save insights by tapping your headphones, chat with episodes, discover the best highlights - and more!

Get the app