Quote:
Originally Posted by Jason14h
https://www.netinterest.co/p/the-dem...on-valley-bank
Here’s a good summary of why it happened .
Some rumours that the tech tycoons (Thiel cough cough ) did a run on the banks to force the fed to consider stopping rate hikes
It’s really just a liquidity issue and timing of assets valuation/maturity issue
The bonds don’t loose money unless the bank is forced to sell - so it’s very different from the mortgage financial crises where the asset truely devalued
The issue is having to borrow money at 6% to cover withdrawals when your bonds are paying 1.5%.
And if you didn’t want the thread to be a joke , try having a proper thread title and a first post with some substance
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Yes, these guys are being predatory on an overleveraged bank, and then are playing the federal system to hopefully lower interest rates. It was a calculated play by 3 big hedge funds, as they all pulled funds on the same ####ing day. That's shady as ####, and I hope someone goes after them in an antitrust suit.
This #### has real ramifications on the entire economy. I'm more than a little pissed about it.