
Ep 389. Interest Rate Hike, Credit Suisseâs Failure, and Other Banking + Economic Risks on the Horizon
Focused Compounding
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The Risks of Borrowing Short and Lending Long
I don't, I'm not even sure there's a huge problem with borrowing short and lending long unless that's the entire bet of what your bank has become. And for some of these, that is all that's happening. So they may have had nothing logical to do with the deposits that they were getting during a very bubble time. But we probably can't see that it wasn't available, but there simply weren't the assets that they needed to buy. In many cases, they might have liked to buy those things, but it just wasn't out there in a way that made sense.
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