Very good article, a must read
If store inflation is 8% a year, what should the average new bond interest rate be?
The banks chose to buy the low rate instruments.
Why would any sane person buy a 2.5% 30-year mortgage obligation?
Bond interest rates could (and probably should) be tied to prices of habitually sought goods.
I took the opportunity to add a bit of silver to my stack today.
It’s in shorter supply than usual...
Britannias and Maples are what I grabbed.
If rates fall, the dollar will fall, and price of stuff (often made in China) will rise.
SVB should have been investing in businesses, not in ~1.65% instruments.
Interest rates are far less than in-store inflation.
The Fed puts on an act of acting tough, but savers have been cheated ever since the Moslem educated guy became president.
If house prices are artificially high due to artificially low interest rates, there is a risk of large price drops, therefore mortgagor debt ethics matter greatly.
Would you if a mortgage loan officer lend to a student loan deferment abuser?
SVB was down 2% on the outset. They never hedged it.
Catfish bait.