03-13-2023, 04:33 PM
2008 was predicated on Junk Bonds that **NEVER** should have been created in the first place, much less allowed to have been purchased by Federally Insured financial institutions. The idiot execs at those institutions should have been neutered and quartered for even thinking about purchasing that crap.
In contrast, SVB invested in US Treasuries, and got caught in an interest rate squeeze that the Fed, in large part, created to combat rising inflation. So now, all the Fed is doing, is loaning SVB and SigBank money based on the FACE VALUE of their US Treasuries, rather than the lower market value caused by the current interest rate squeeze.
Way, way, way different scenario.
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In contrast, SVB invested in US Treasuries, and got caught in an interest rate squeeze that the Fed, in large part, created to combat rising inflation. So now, all the Fed is doing, is loaning SVB and SigBank money based on the FACE VALUE of their US Treasuries, rather than the lower market value caused by the current interest rate squeeze.
Way, way, way different scenario.
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