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Banking, Economy

“Why regional banks are now willing to take billions in losses”

“More US regional banks are taking a step that was unthinkable more than a year ago in the aftermath of the Silicon Valley Bank failure: selling underwater bonds at a loss…

The difference this time around is that regional banks aren’t selling lower-yielding securities to pay depositors. Instead they are preparing for interest rate cuts from the Federal Reserve…”

https://finance.yahoo.com/news/why-regional-banks-are-now-willing-to-take-billions-in-losses-123009272.html

So the banks are telling us rate cuts are coming. Well That makes investing easier. It’s not a mystery now. Remember folks the “powers that be” don’t want a faltering economy during election year. The rate cuts could be a fake out. Meaning post election rate cuts stop or return to increasing.

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