The Fed and U.S. Treasury have made to decision to back-stop depositors at U.S. banks – a liability that could potentially hit $2 trillion. More interestingly, there must be...
The tide is turning towards mitigating the damage of the steep rise in interest rates, but will it turn fast enough and when it does, just how close to capsizing will we be?
I expect Goldilocks to be temporary, maybe very temporary because typically when the Fed halts a rate hike regime that is when troubles brewing beneath the surface..
Many articles and pundits will say that SVB collapsed due to lack of risk managment or insuffiecient regulation. But the root cause of SVB (and other bank failures) is much scarier than hoping the problem is unique to SVB.
No asset is "risk free." That is a marketing term coined by Wall Street bankers and bureaucrats to peddle debt backed by the "full faith and credit" of our now hopelessly insolvent Uncle Sam.
Decades of overleveraging is threatening the financial system. The absolute importance of diversification via a balanced portfolio during risky moments. PMs, the ideal panacea..
