Wow - there’s some really ominous data here. So a bank liquidity crisis is shaping up, probably so massive that the federal government will have to again step in and reimburse lost deposits by the trillions. Looking at the long game of chess moves here, do you see hyperinflation developing, followed by collapse into a Great Depression and serious deflation? Or is there a more optimistic outcome likely?
We must understand that there are no "lost" deposits. Thus far no bank investments have resulted in extraordinary losses due default. The risk is entirely one of valuation being lost due to interest rate risks. If banks could hold their portfolios to maturity there would be no crisis
Wow - there’s some really ominous data here. So a bank liquidity crisis is shaping up, probably so massive that the federal government will have to again step in and reimburse lost deposits by the trillions. Looking at the long game of chess moves here, do you see hyperinflation developing, followed by collapse into a Great Depression and serious deflation? Or is there a more optimistic outcome likely?
We must understand that there are no "lost" deposits. Thus far no bank investments have resulted in extraordinary losses due default. The risk is entirely one of valuation being lost due to interest rate risks. If banks could hold their portfolios to maturity there would be no crisis