Reply to I don’t know how banks work

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]SVB invested heavily in govt bonds and failed so its a major problem and the fed is again messing things up. They should have raised rates earlier and slower, and now they raised them to late and to fast and too far.

Fed is full of idiots.[/quote]

The issue with respect to SVB is that it did not use a proper, common investment strategy such as laddering. Laddering bond investments means that one invests in bonds with different maturity dates (and with different maturity lengths).

Laddering bond investments minimizes investment risk and should facilitate liquidity.

SVB GAMBLED with its clients' deposits. IF interest rates declined, then the GAMBLE would have paid off. But, our banking system is not--and should not be--based on gambling and guessing.[/quote]

rates are going to be cut, the fed has failed to understand the market, they are causing massive losses and failures and inflation is not changing. they don't have a way to change inflation, this isn't the 70s its more complicated as its a geo polical issue w/ supply chain being choked off by russia and china.[/quote]

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