now we’re getting into weird philosophical questions: if every bank had sold these treasuries (realizing the loss) and used the proceeds to buy similar treasuri

now we’re getting into weird philosophical questions: if every bank had sold these treasuries (realizing the loss) and used the proceeds to buy similar treasuries, their portfolio would be basically the same: same present value (obviously), and same to within a few percent future cashflows. at any layer above the balance sheet, these two worlds are difficult to distinguish. so what makes one “real” and the other not?