Replying to Avatar Mike Brock

Yeah, SVB failed because of an deposit duration/asset maturity mismatch, which couldn’t be corrected due to the cost of rolling those assets, which was a result of terrible risk management on their balance sheet. Their completely loss of liquidity was a function of that. Not a function of the bank being insolvent.
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⚡️🌱🌙 2y ago

Borrow short lend long is the root of many a bankrupt bank.

Surprised people still put money in such institutions.

They get crunched every single rate hike cycle.

I guess people have short memories or a too young to know better.

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