>Those Treasuries do in fact have a market price and although they'd return all their principal eventually, it isn't today and is actually a long time from toda

>Those Treasuries do in fact have a market price and although they'd return all their principal eventually, it isn't today and is actually a long time from today. Yes, and if people don't run the bank, then they can hold on to those Treasuries until they mature? I agree if they have to sell today, that's bad, but again, that's also true of any bank selling through any type of illiquid assets. We just got used to interest rates going down for 40 years and this not being a problem (banks got run for different reasons back then).