Damus
Lyn Alden profile picture
Lyn Alden
@LynAlden
Fun fact.

Many US banks hold long-duration Treasuries that are currently underwater. They don't have to mark their unrealized losses to market because they plan to hold them to maturity.

This works as long as they don't have a highly-volatile deposit base that pulls money out and forces them to sell their Treasuries at an inopportune time and lock in a loss and thus risk insolvency.

4139❤️110🤙90
JeffG · 165w
😰
nobody · 165w
bank runs are just getting started… 🍿
Ben Justman🍷 · 165w
JFC. Good thing all of my Dollars have been turned into Bitcoin and Wine. 🧡🍷 #[0]
exit · 165w
Not your wallet, not your debt note.
elephant · 165w
We’re looking at you, Silvergate.
𝖋𝖎𝖆𝖙𝖉𝖊𝖓𝖎𝖊𝖗 (¯`◕‿◕´¯) · 165w
I doubt they hold that much treasuries to begin with. They probably have less than 3% in reserves.
BoomTown · 165w
https://giphy.com/gifs/TheTabooGroup-yes-jack-nicholson-tacsocial-KDVswimTNahWzcd7sV
Petr · 165w
Isn't it role of Fed to provide emergency liquidity in case of bank run? In theory it should work if interest on that is lower than long term treasuries.
hunter wells · 165w
would be a real shame
William K⚡Santiago🔑☢️ · 165w
How about Credit Unions? Are they considered small industry-specific players?
Erik The Decentralist · 165w
I was waiting for a punch line or supwr fact involving Canada ...
BitcoinOnly · 165w
Soooo bank run time to start the party?
nodez · 165w
Same to china banks
Negation · 165w
Fun fact: just because you don’t make your unrealized loss does not mean your portfolio is not at risk. #[0]
tankjr · 165w
Ignorant guy from Europe here, what's the news?
darnzen · 165w
The bank my business uses asks for financials every year for line of credit. I want to ask them for their financials to make sure they sre solvent. Only problem is I don't know what to look for on a banks balance sheet.
Bozosozo · 165w
#[0]
Alex Jones · 165w
We need more bank runs. They will happen, just need patience and in the mean time buy #bitcoin consistently. https://void.cat/d/XL1a1hhJT5mKNQscqZ7oxs.webp
John Smith · 165w
bank run bank run! BANK RUN!!!
thorny · 165w
Do the recent events change your view on the banking industry (eg. ITUB, HDB, etc.)?
JacobHK · 165w
Luckily I hold 50 percent of my wealth in BTC!
Aaron · 165w
Wow, the timing on this one, Lyn.
Nick Carraway · 164w
Lyn, thinking about the Fed, I know you expect tangible book value to go negative in the coming weeks. At what point do they get liquidity constrained? We all know that they can "print"...but, can they print the interest owed on overnight deposits?
Chris · 164w
Lyn correct me if I’m wrong please, but in the case of svb they did a horrendous job of managing their duration risk over the past year as rates spiked and they didn’t hedge. And forgive me if you have mentioned this elsewhere, but it’s my understanding that there are several if not many mor...
DETERMINISTIC OPTIMISM 🌞 · 164w
You’d think the risk desk would have hedged the deposit I/O velocity. Narrator: 😬
Satoeshi Nakamoeto · 164w
they called it is a “risk-free”.