How the Fed and the Discount Window Learned a Lot From the Great Recession

In 2022, the Fed started raising interest rates fast and aggressively. And when interest rates go up, bond prices go down. Last year was the worst year ever for the US bond market, including US government bonds. You know who holds a lot of US government bonds? Banks. So they were feeling the stress, and they borrowed from the discount window which is good. That's what's supposed to happen. Then in March, things got much more. Fast and aggressively more. Three banks collapsed, Silvergate, Signature Bank, and the Biggie Silicon Valley Bank. It was a bad time for your name to start with S. We have not had one of these runs for a very long