US Govt Bails out SVB with Whose Money?
Look at this wild 1-week ride for the 2-year US Treasury yield, and it is a concerning one.
It is, of course, a reflection of what is going on elsewhere–in the economy, finance, and policy.
Having said that, this extreme volatility can, in itself, be a cause of financial stress. pic.twitter.com/jwX2XDPI4U— Mohamed A. El-Erian (@elerianm) March 13, 2023
Who is currently backstopping the US Treasury markets because it is very obvious there is a move to drive down yields, given ongoing developments.
Or are we seriously supposed to believe that the very institutions with massive unrealised UST losses are buying more?
— The Sirius Report (@thesiriusreport) March 13, 2023
The Biden fix for the Bank collapse, is to transfer the Depression size collapse into the US Treasury to save the Banks Owners, large Stakeholders, and depositors over 250K, creating Runaway inflation and devaluing the US Dollar hoping for a default. Weakening the US by design. pic.twitter.com/qC0yBx7Qad
— RonAnon (@TheRonAnon) March 13, 2023
If businesses lose money on deposit, then every business in the country will move all cash above $250K into Treasuries and we’ll have a system-wide bank run at Twitter speed.
They’ll tell their banker, “the only counterparty I want is the US Treasury.” https://t.co/BGcbTfReV4
— Naval (@naval) March 10, 2023
The situation at Silicon Valley Bank has left many on edge
SVB had $175B in deposits, a large % coming from SF small businesses, nonprofits & tech startups that are locked up due to the collapse.
There are big ramifications if the Fed & US Treasury don’t take fast action:?
— Senator Scott Wiener (@Scott_Wiener) March 11, 2023
? BREAKING NEWS ?
US Treasury official says this situation is not 2008 and firms are not being bailed out.
TRANSLATION: This is 100X worse than 2008, We just papered over the cracks & kept doing the same thing that led to that crisis & firms are ABSOLUTELY being bailed out ? pic.twitter.com/Uf8daf8yYq
— G-MAN (@GavinClimie) March 13, 2023