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A comment on Yellen says government will help SVB depositors but rules out bailout. Parent comment

Re:Yellen says government will help SVB depositors but rules... by tsunamifury on Sunday March 12, 2023 @01:02PM (#35122721)
This is the second completely detached from reality statement you have made. The US government requires that banks spend 90% of their deposits on tbonds so that they can continue to fund the process of money creation.

The strategy is mandated by regulation post 2008. The mistake svb made was buying 10 year instead of 3 month. Hard to explain that one other than the fed said inflation would be transitory and it wasn’t.

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Re:Yellen says government will help SVB depositors but rules... by matheusmoreira on Sunday March 12, 2023 @01:39PM (#35123328)
> The mistake svb made was buying 10 year instead of 3 month. Hard to explain that one other than the fed said inflation would be transitory and it wasn’t.

So what you're saying is the bank made investments based on a whole lot of assumptions. These assumptions were quickly invalidated by US policy changes.

Got it.

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