“Why regional banks are now willing to take billions in losses”
July 30, 2024
“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…”
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.