The Brains Trust - 2023, page-697

This is incredible really.

GFC said to banks do whatever you want we will fix it.

Now that has created the problem they are all exposed to massive long bond losses. Only if forced to sell. Can hold to maturity with no loss.

There seems to be a race to get rid of a few from commercial banks. Wonder if they are forced to as deposits leave for better return ?



Hedge funds keep betting big against bonds who is smart enough to reach an outcome here ?

The FED prints money buys bonds from banks with the printed money- the banks should lend the new reserves out but they just bought bonds too so in my view they interest rates have been artificial for some time.

Interesting times. Could have got excited about Japan destroying itself with QE for years but it hasn't yet.

Interesting times anyway.