Just a bit of a tweak.
If a bank is holding treasuries (svb was), and those treasuries are illiquid because teh Fed raised rates to 5%,
It’s a fed created crisis. So either have the fed just buy them back at the original price (not a problem) and re-sell at 5%, and have the FED take the hit, OR, instead of taking the hit, take bank stock (as you’re suggesting) as compensation, nationalizing the bank, and don’t take the hit.
Source date (UTC): 2023-03-13 17:52:33 UTC
Original post: https://twitter.com/i/web/status/1635338071099973648
Replying to: https://twitter.com/i/web/status/1635335670607810561
Leave a Reply