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How many banks would make decade long bets that interest rates would stay near zero? In an era which involved printing trillions of dollars in just a couple of
by colechristensen 4y ago
How many banks would make decade long bets that interest rates would stay near zero? In an era which involved printing trillions of dollars in just a couple of years.
If SVB or any bank wasn't underwater on an enormous amount of investments, this wouldn't happen. They could sell or borrow enough to cover the withdrawls.
I'm afraid there's some evidence that there are other very large banks with unrealized losses which might be in similar situations soon.