Embed Notice

@alex Jim Bianco's narrative is lots of retail/deposit customers pulled money out of 0.5% rates to put into money markets at 3.4% or more and this led to liquidity problem. Bank assets were in Fannie/Freddie mortgage backed securities that were yielding avg 1.5% and so lost tons of face value due to Powell raising rates. Regulators don't "mark to market" but let banks "hold until maturity" and ignore the notional loss. SVB had to auction security available for sale. *crash*