Surprise, Surprise

For those out there in the Real World who wonder how SVB and the rest came a cropper as Jerry went all Volkerkrieg 2.0, here's the proof from 2 years ago. At least; could be the experts knew even earlier, which has been my sense of the world.

Banks are awash in deposits, and their customers are taking out fewer loans. So they have little choice but to buy up government debt, even if it means skimpy profits.

What could possibly go wrong? It would have helped, clearly, if Jerry knew what the fuck he was doing. The post-Covid inflation was predicted (trillions of Bongo Bucks horded during the Pandemic, just waiting to be spent), USofA bidnezzmen depending on Xi to be rational with 'our' supply chain, and such. The lack of American superiority in capital deployment has been obvious for years. So, the bankers went to Uncle Sugar for sustenance. And the Fed professionals knew it. But Jerry? Not so much. Helps (or hurts depending on one's definitions) that Jerry is just a lawyer, (neither an econ (yay!) or MBA (boo!)) big boo!! I can't prove, but would be willing to bet, that he wouldn't recognize a macro economic model if it bit him in the ass. We deserve better.