from Balaji | by Balaji

What we’re likely to see in the coming weeks is that this wasn’t a single bank’s issue. It was a central bank issue. Don’t take my word for it. Just four days ago the FDIC chair said “most” banks are suffering unrealized losses thanks to the Fed’s rapid change in interest rates.… t.co/oniZXxUKTs t.co/j5YDtR2DUv

Link to the FDIC chair’s talk. Note that he calls out rapid interest rate changes in particular as a primary driver of risk. The Fed caused the chaos. t.co/s0ZnYyGYT1

Here’s part where he says “most” banks have unrealized losses. The total: $620B in unrealized losses from buying what are supposed to be the safest assets around, namely treasuries. To simplify: the government sold bonds, said they were safe, then massively devalued them. t.co/PR95wWLwPG