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I have no horse in this race but... The US has spent the last 15 years printing money to bailout mortgage holders. So no one who has had a mortgage or sold a h
by LatteLazy 4y ago
I have no horse in this race but...
The US has spent the last 15 years printing money to bailout mortgage holders. So no one who has had a mortgage or sold a house since 2008 can complain about a bailout, since they have received one...
- Kephael 4y agoFunny thing is, part of why SVB blew themselves up was they bought a bunch of long term mortgage backed securities paying low rates so now those securities have lost a ton of value if they were to liquidate them (which the FDIC will be doing shortly). But I don't think the Fed engaging in QE constitutes a bailout.
- LatteLazy 4y agoIt will be interesting to see who else is struggling as I doubt svb are the only bank that went long duration to try and eek out some yield. Here in the UK there was a pretty explicit choice to watch medium sized (still huge for a mere human like me) banks fail but to bail out large ones. I guess that's fine from a short term, pragmatic sense. Not sure what it does for long term competition but c'est la vie. I believe bailouts are usually kept secret as telling anyone (a) makes banks less likely to ask for one and (b) then causes a run pushing up the cost of the bailout. The conspiracy theorist in me wonders who has been given a below-inflation "loan"...