Loading ...biggest move I’ve seen pretty much ever. Money bullrushing into bonds is counterintuitive. Unless maybe there is some serious event risk out there. Why the rush to safety of bonds? Why was the USD weak?
Inquiring minds would like to know.
U are having a classic bank run, at almost the worst possible time, as tks to the huge rise in rates Banks are sitting on massive Bond/Note Losses…the last thing they want to do is to have to liquidate and of those portfolios and taker the losses on the chin…..that is what sent SVB over the cliff…..It had 175 Billion in deposits and a 2 Billion $ hit on a bond portfolio….. took it out .
The entire banking sector is sitting on monster losses, which if run to maturity, are just fine…but if people start asking for their money now, they have to liquidate at those monster losses and no-one has huge capital to absorb such hits….. This where the Fractional Reserve banking system, hits a brick wall.
Sunday night will have the scum out in full force…can they stop a genuine panic…..