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Yeah as long as the banks hold actually valuable things- SVB had treasury bonds- no reason the federal government can’t treat those as cash. I mean it’s their o
by coffeebeqn 4y ago
Yeah as long as the banks hold actually valuable things- SVB had treasury bonds- no reason the federal government can’t treat those as cash. I mean it’s their own issued assets!
- 323 4y agoThe problem in this particular case is they already sold those treasury bonds, at a loss. But yeah, it would be ridiculous for a bank to go bankrupt because it bought it's own government bonds.