Credit Suisse Bailout Crosses a Debt Rubicon https://www.bloomberg.com/opinion/artic ... bt-rubicon
Simple explanation of what is happening
Credit Suisse Bailout Crosses a Debt Rubicon https://www.bloomberg.com/opinion/artic ... bt-rubicon
Continuing the graph, it's beginning to look like the previous ones with a spike following by an exponential decay. It's once again difficult to find 3 month CDs yielding over 5%. Insofar rates keep increasing, it'll end TINA and affect the "everything but cash"-bubble. One hawk: https://www.marketwatch.com/story/feds- ... y-dd1c0cae
Here’s the really long and detailed explanation of what is in it for them by Matt Levine:
Anyone who isn't subscribed to Money Stuff is missing out on a free and hilarious education.Slevin wrote: ↑Mon May 01, 2023 2:57 pmHere’s the really long and detailed explanation of what is in it for them by Matt Levine:
https://www.bloomberg.com/opinion/artic ... t-republic
They aren't inflation adjusted. It says assets at time of failure on the chart.
“If the functioning of the Bundesbank is endangered by an inadequate or even negative net equity, the Federal Republic of Germany can be obliged to inject capital,” it said. “Depending on the extent and probability, the risks arising from monetary policy could, in the worst case, endanger the budgetary autonomy of the German Bundestag”.