So, the Fed raised the intrest rate again by a 1/4 of a point.

At the very same time the Fed is trying to reduce inflation by raising the rate, Biden is continuing to continue to print money like a mad man and spending like crazy.
Now, this can go on only so long, if you think SVB was a lone Bank just being run wrong, and deserved to fail, well some of that may well be true, but the farther out on this limb Biden goes, the more Banks that will fail.
No joke, these three forces, The Fed, the Banks and .gov over spending keep conflicting. The Fed and The .gov overspending wont stop, so where does the pressure go? The Banks.

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Originally Posted by Averageman

At the very same time the Fed is trying to reduce inflation by raising the rate, Biden is continuing to continue to print money like a mad man and spending like crazy.
Now, this can go on only so long, if you think SVB was a lone Bank just being run wrong, and deserved to fail, well some of that may well be true, but the farther out on this limb Biden goes, the more Banks that will fail.
No joke, these three forces, The Fed, the Banks and .gov over spending keep conflicting. The Fed and The .gov overspending wont stop, so where does the pressure go? The Banks.

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And at the same time we are pushing more and more countries AWAY from our financial institutions / payment systems and wanting to use the the US Dollar in their trade with other countries.

Really brainy on our part... :(

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Originally Posted by yoni

Every day I see something that is so stupid, that it must be by design.

Destroy the economy, you destroy middle class paving the way for a marxist revolution

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This ^

Quote:

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Originally Posted by Averageman

At the very same time the Fed is trying to reduce inflation by raising the rate, Biden is continuing to continue to print money like a mad man and spending like crazy.
Now, this can go on only so long, if you think SVB was a lone Bank just being run wrong, and deserved to fail, well some of that may well be true, but the farther out on this limb Biden goes, the more Banks that will fail.
No joke, these three forces, The Fed, the Banks and .gov over spending keep conflicting. The Fed and The .gov overspending wont stop, so where does the pressure go? The Banks.

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I think most banks are gonna be just fine. It ain't like they were out buying 20 year treasuries at 1%. Losers will be the folks like SVB that ignored traditional risk management practices. They were in trouble for more than a year and had been warned by regulators. They and their big tech pals are still blaming "irresponsible depositors" for pulling their money out of the bank. "We weren't the problem, the customers are the problem." "Progressive" leaning bank management catering to big tech and lefty politics caused the problem.

I still predict that .gov will soon make it harder to move your own money. It's already hard to move big $$$ quickly and the powers that be would rather protect their friends than folks like you and me.

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Originally Posted by utahjeepr

I think most banks are gonna be just fine. It ain't like they were out buying 20 year treasuries at 1%. Losers will be the folks like SVB that ignored traditional risk management practices. They were in trouble for more than a year and had been warned by regulators. They and their big tech pals are still blaming "irresponsible depositors" for pulling their money out of the bank. "We weren't the problem, the customers are the problem." "Progressive" leaning bank management catering to big tech and lefty politics caused the problem.

I still predict that .gov will soon make it harder to move your own money. It's already hard to move big $$$ quickly and the powers that be would rather protect their friends than folks like you and me.

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Is it public record of who bought long 10,20,30 years US govt bonds? I thought that insurance companies paired the bond length to the time frame of the policy, so that to me would mean that some things like life insurance might have an issue.

But as you or someone else pointed out, this is only an issue if you have to liquidate the bond. A 30yr treasury that bottomed out between 2-3% a few years ago, it’s net present value 5 years in if rates go to 6%… 8%… that kind of delta from low to high is what we looked at in the early 80s- and they went to almost 16%..

When I took my finance class, it was closer to when people still used slide rulers than to today. (For the truly math challenged, I mean the 90s). I can use Excel to add, subtract, multiply AND divide…

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Originally Posted by FromMyColdDeadHand

Is it public record of who bought long 10,20,30 years US govt bonds? I thought that insurance companies paired the bond length to the time frame of the policy, so that to me would mean that some things like life insurance might have an issue.

But as you or someone else pointed out, this is only an issue if you have to liquidate the bond. A 30yr treasury that bottomed out between 2-3% a few years ago, it’s net present value 5 years in if rates go to 6%… 8%… that kind of delta from low to high is what we looked at in the early 80s- and they went to almost 16%..

When I took my finance class, it was closer to when people still used slide rulers than to today. (For the truly math challenged, I mean the 90s). I can use Excel to add, subtract, multiply AND divide…

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I'm not educated enough to understand who was buying those long terms at 2% or even less in 21. I certainly don't know why anyone would purchase a long bond at that rate. Makes no sense to me. I'd have held off or bought shorter term. Gotta be a reason, I just don't get it.

I mean sure 2% beats nothing but why lock in for 20-30 years at the lowest rates in history? Got me, but somebody bought em.