We’re calling it a liquidity problem only because they don’t have to mark to market. In reality it’s a solvency problem, they lost a shit ton of money by buying

We’re calling it a liquidity problem only because they don’t have to mark to market. In reality it’s a solvency problem, they lost a shit ton of money by buying bonds at 0-2% that are worth 50-70% value because equivalent bonds pay 5-6%. In theory they could hold that shit to maturity but in practice they can’t because some folks want money now and all depositors will want higher interest on deposits eventually to match market rates.