- Sep 24, 2005
- 6,861
- 1,351
- 113
Long standing QE made everyone complacent and market was calling Powell's bluff...not smart. If he wants 2% inflation there is more to come on the downside unless we get Black Swan event which could happen...bank action indicates things becoming unglued a bit.
Yup. Banks are able to hold their allowances in shorter term treasuries, so with the rising interest rates , these silicon banks had to sell off at a loss. Also, with banks giving nothing in their cds , lots of people like me probably have made the effort to move chunks to us treasuries, where you can lock in at 4.5 to 5.25 for 2-3 years. This wasn't happening when there was only. .5-1 % spread to treasuries, no one gave a shit, feds going to have to consider all this new happenings. Probably part of the run on Silicon banks was designed to slow Fed down, that's my own guess, not sure if the fake Marxists will allow fed to make this happen, as they will continue to work the majority of the country with the message of the greedy producers vs those in need. There should have always been a balance for all, but impossible to achieve this, when the masses aren't their 1st, 2nd, or even 5th concerns, The Donner Party is leading us now, yes I do digress...:0003