Post by
prophetoffactz on Mar 12, 2023 7:39pm
US Fed
US Fed is in a similar position to SVB. The FED borrowed short-term and invested long-term and is $1 trillion underwater. As long as depositors don't start to question if their deposits are safe beyond insured amounts in other banks then everything should be ok. If this is a wake-up call for depositors and they want to move their money into treauries or into the too-big-to-fail money center banks then the run on banks could continue. The only way for the Fed to protect everyone would be massive money printing.
Comment by
campst on Mar 12, 2023 8:23pm
"The Federal Reserve also said it is creating a new Bank Term Funding Program aimed at safeguarding institutions impacted by the market instability of the SVB failure." Source is cnbc story li jed above