Hmmm…..
That same entrepreneur went into print again today. His final words (after discussing 3 banks that have failed in the US in just 3 days) were these:-
… they had substantial assets tied up in Treasuries – fixed rate securities. ………….. That’s not necessarily a problem. You can just hold them to maturity, and you just didn’t make as much money on them as you would have liked. But if you’re forced to sell them, you have to sell them at a loss. And you lose big money. ……………… this is what happens when you raise rates aggressively (too aggressively).
Is he right? Makes sense to me….. But then I’m just an ordinary bloke with an opinion. What’s yours?
If he is right, perhaps I should send this chap’s email to the RBA before they break something major here too !! :(
They’ve raised rates by 140% so far, with perhaps more to come? I think there are already many broken people…. when is enough going to be enough for these clowns?
Benny
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