{"id":10968,"date":"2023-03-13T06:53:21","date_gmt":"2023-03-13T13:53:21","guid":{"rendered":"https:\/\/www.stevesaretsky.com\/?p=10968"},"modified":"2023-03-13T06:53:40","modified_gmt":"2023-03-13T13:53:40","slug":"gradually-then-suddenly","status":"publish","type":"post","link":"https:\/\/www.stevesaretsky.com\/2023\/03\/news\/gradually-then-suddenly\/","title":{"rendered":"Gradually, then Suddenly."},"content":{"rendered":"\n
Happy Monday Morning!<\/p>\n\n\n\n
Central banks finally broke something.<\/p>\n\n\n\n
After leaving rates hovering near zero for over a decade and engaging in trillions of dollars worth of QE (Quantitative Easing) you can\u2019t simply raise interest rates by 400bps in less than a year without something going boom in the night. It was never a matter of IF, but WHEN.<\/p>\n\n\n\n
There are more qualified people than me to talk about the Silicon Valley Bank debacle so i\u2019ll keep this brief.<\/p>\n\n\n\n
Banks are sitting on huge unrealized losses. The bonds they bought at ultra low interest rates were destroyed in price when the Fed jacked interest rates, and bonds are the collateral supporting the entire financial system.<\/p>\n\n\n\n