Comments by "worn down" (@worndown8280) on "The BIGGEST BANKING CRISIS EVER Has Just Begun…" video.

This is ultimately because of rising rates, not liquidity. The treasuries that all these banks have bought over the last 5 or 6 years only give .25% of a return. So if they have to sell them to raise liquidity they are next to worthless. So banks lose out on their total return, which due to inflation would already be a net loss, but have to sell it at an actual loss to get cash. This gives a bank a double hit on their balance sheets. Every bank has these treasuries. So on paper they look perfectly ok. But if there is ever a need to draw cash from said bank, they will all pretty much go bankrupt. This is just another poisonous side effect of leaving interest rates to low for to long.
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