[InternationalVillager]

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

/end thread.

++ to Cali.