Banking Crises Creates Bank Bailout
- All deposits even over $250,000 are covered by FDIC at Silicon Valley Bank and Signature Bank. Implied guarantee for all uninsured deposits in the banking industry. About $7 Trillion in total.
- Banks can borrow against their portfolio at par even if the market price is 70, 80 or 90.
Unrealized Losses are in the hundreds of billions for the banking industry and other financials.
The Federal Reserve has lost over One Trillion Dollars.
QT (Quantitative Tightening) might be paused.
FFR (Fed Fund Rate) Increases might be paused.
War against inflation might be surrendered.
I am staying cautious and monitoring. Poised to react.