The Fed (The Federal Bank) increased its Balance Sheet by $400 Billion through specialized lending to banks. Silicon Valley Bank (SVB) problems started with big losses on the bond portfolio that metastasized into a run on the banks deposits. Banks have $620 Billion in unrealized losses so this is a wide spread problem. Small and medium sized banks are losing deposits which will result in tightening credit and help push the economy into a recession.

QT (Quantitative Tightening) has been on pause with only $6 billion reduction in treasury bond portfolio versus $74 Billion per plan. $90 billion matured on March 31st. The question will be did the Fed roll them or restart QT. Unpredictable environment.

Banks are bad investments. My Positions in Citigroup and US Bank which I had bought in December were sold as SVB crystalized how incompetent banks are and that banks have historically been bad investments.