“””I’m no expert on these matters, but it seems to me that the easiest course of action from the Federal government would be to have the U.S. Treasury buy all of SVB’s bond holdings out on a dollar-for-dollar basis.”””
Are you saying that the FED should buy the SVB bond holdings at par???? Even though those bonds are now only worth 60% or less of their par value?????
Please explain.
Yes.
That's exactly what the FED was doing for more than a decade before that -- artificially keeping U.S. Treasury rates low by buying them at rates no investor would ever accept.