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There is of course a difference between holding assets with a subjective (potentially bubble) valuation and holding a long dated treasury. With the treasury, t
by benjaminwootton 4y ago
There is of course a difference between holding assets with a subjective (potentially bubble) valuation and holding a long dated treasury.
With the treasury, there is a very liquid and transparent market and you will almost certainly get all of the money back on a specific date. You just have to wait long enough.
- highwaylights 4y agoYes, but it seems irresponsible that a bank would follow a plan like that knowing they don’t have control over when depositors ask for their money back.
- landemva 4y agoRight. The depositors want paid in dollars not (underwater) fractionalized long duration bonds. Bank regulators allow mark-to-maturity accounting, and we just saw government and federal reserve backstop all deposits to cover up their regulatory blindness.