Silicon Valley Bank, Signature Bank and other distressed banks have been done in by rapid increases in interest rates by the Federal Reserve Bank. These commercial banks had long positions in Treasury obligations that lost value as interest rates went up. With monetary friends like these…
Magnificent Anti-American Jihadis
Ted Rall
Ted Rall is a syndicated political cartoonist for Andrews McMeel Syndication, WhoWhatWhy.org and Counterpoint. He is a frequent contributor to The Wall Street Journal, a graphic novelist and author of many books of art and prose, and an occasional war correspondent. He is, recently, the author of the graphic novel "The Stringer."
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The owners at Silicon Valley Bank took a long position on treasury obligations because if interest rates stay low they profit nicely, and if interest rates go up then they get bailed out. With heads they win; with tails the US taxpayer loses. People can make bets on interest rates with their own money, but if it is FDIC insured then it is / should be a crime to put that many eggs in one basket.
I suppose? Your garden variety jihadist has no clue about these kinds of matters. OBL thought he would irreversibly cripple the American economy by taking down the WTC, as though our entire economy flowed through those buildings (<- and even if this is not correct, I'm on rall.com where it matters more if "I made you think").
It’s very important that foreign plunderers be kept out so that they don’t take what is reserved for our domestic plunderers.