
Originally Posted by
Sanlmar
If they held the bonds to maturity that might have been one thing but they needed to sell as the tech startups gegqn needing cash more than ever as VC’s weren’t in the position or as willing to fund them. Even if they didn’t sell the bonds they needed to mark them to market (present value which because interest rates went up their value went down)
Druff’s observation about a “bank run” was just icing on the cake.
But yes, the dumbest finance guys are in banking and the Fed. It’s something you can count on.
Whether banking as we know it now exists in ten years is a very interesting proposition. The answer is no especially because of the coming CBDC