Friday, March 17, 2023

SVB Is Now Marketing That It Is the Single Safest Place to Keep or Transfer Your Deposits

Is this some of the moral hazard that I've heard so much about?

A sweet catch from Charlie Bilello:

THREAD

Related: our the comment a few posts down page:

If depositors are being made whole on uninsured funds, and depositories can borrow against underwater assets at par rather than marked-to-market prices, then we might as well lift the Fed's policy rate by 2% to get the inflation adjusted real rate up to zero from the current -2% and put a stake through the heart of inflation right now.

On a slightly more politically-realistic note, I'm telling you there is something about the idea of shrinking central bank balance sheets that scares the bejeebus out of the central bankers.