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He meant solvency issue. Someone else called this out downthread and he confirmed. Definitely felt like it should've been corrected more prominently, though.
by lkbm 4y ago
He meant solvency issue. Someone else called this out downthread and he confirmed. Definitely felt like it should've been corrected more prominently, though.
- zzleeper 4y agoAnd yet he is wrong! They were stuck with assets earning <2% for 10+ years, meanwhile depositors were demanding higher returns (else they would put their money in other banks, in 6m tbills, 10yr treasuries, etc.. all of which paid a lot more). And thus, "it's not a solvency issue as long as depositors are stupid and don't realize they can get more $$$ from other banks" ends up being quite misleading
- jamiequint 4y agoYes, I mis-spoke. If only there was some way to edit tweets or to pin your replies to the top of a thread :P
- lkbm 4y agoIf you reply directly to your initial tweet with your correction (perhaps QTing the person who asked), I think it will appear at the top, or at least get higher ranking. I often see replies "boosted" via the original author QTing them as a reply this way.
- benlivengood 4y agoSo they didn't require the deposits earning 2% to be in term CDs like sane banks and credit unions do?