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DrScopeify
Wall Street Millennial
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Comments by "DrScopeify" (@drscopeify) on "Silicon Valley Bank’s Collapse Explained" video.
It's not just the USA this could happen in any country where interest rates went up fast and aggresively, most countries have raised interest rates on the same level as the USA and if any bank runs out of cash and is forced to liquidate paper with low returns they bought during COVID.... Not good. Why would anyone want to buy paper with 1.5% return or whatever rate when you can right now to your central bank and get paper with like 4% or 5% or even 6% or whatever return? Yeah, no one wants to buy that trash and the banks will need to sell Billions of that paper.... OUCH. As long as banks have enough cash or other assets they can sell quickly without taking on big losses then I guess they should be OK but who knows.
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