>The government requires banks buy their debt and hold it as reserves because it's considered the safest investment. They don't require it, it is the safest in

>The government requires banks buy their debt and hold it as reserves because it's considered the safest investment. They don't require it, it is the safest investment. What do you consider a safer investment? >Oops, they're not so safe after all if you need your money back before maturity, Golly, it's almost like banks are supposed to know how this stuff works. It's funny that you relate "safe" to "never changes price". The bonds were safe and are safe, which is why the "bailout" is an okay deal (ethics aside); the government will pay your money back. >SVB is certainly not blameless here Who on this planet would consider them blameless? They are 95% of the blame of their own situation.