Comments by "eatmorenachos" (@eatmorenachos) on "Republicans Doing Their Best To DEFLECT Blame For Silicon Valley Bank Collapse" video.

Well, he is full of something.
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Let's go after that space varmint! He's stealing all the eggs!
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@triciabrown1462 Long-term government bonds are a sound investment---BUT they lose value when interest rates rise. The bank failed to acknowledge something that the entire planet knew, that the Fed was hiking interest rates. The bank also issued tons of loans in the tech sector, which is susceptible to interest rate increases as well. It failed to hedge for any interest rate increases, fell short of cash and sold government bonds at a loss of nearly $2 billion. It had to sell its bond holdings that just about the worst time to do so. The FDIC is like an insurance company, with banks paying premiums. Taxpayer dollars are not involved.
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@triciabrown1462 the payout you get from cashing in a bond (at maturity) is set in stone. The cash value for that bond changes within the bond market, where people actively trade zillions of dollars worth every day. The bank had to sell its bonds for far less than they were worth because it was desperate for cash. It's like having to sell your house during a slump in the real estate market. You'd get far less than if you waited for the market to improve.
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