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Washington Policies Caused SVB's Collapse - Not Wealthy Speculators


๐Ÿงต The TL;DR

SVBs collapse was caused by its own poor risk management and communications, but this is closely linked to Washington's policies. Bidenomics drove the rapid rate hikes which made mortgage bonds toxic, providing the tinder for the crisis. The Fed then took decisive action to protect deposits and backstop regional banks.


    ๐Ÿ”‘ Key Points

  • SVBs collapse was caused by its own poor risk management and communications.
  • Rapid rate hikes, driven by Bidenomics, made mortgage bonds toxic.
  • The Fed took decisive action to protect deposits and backstop regional banks.

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