affecting the plumbing of the economy.
this was the quote of an economist I heard today.
Basically, SBV bought a lot of normally safe investments 2 years ago...treasury bonds. But the interest rates were at 0%. Now, those interest rates sit at about 5% thanks to the unbridled Dem spending bills and the resultant fed rate hikes to tamp down inflation.
Now, the bonds are worth less than they money that was put in...which would have been fine if the bonds had reached maturity....but with investors pulling the money back out......no money to pay them back fully.
This was a time bomb caused indirectly from Biden's outrageous spending. How many other banks are in the same boat?
Now, any conservative two years ago should have seen this coming with Dems taking control, and their spending proclivities. But this was a bank of primarily Lefties.