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To-Do:
Bank- Range
VacuumDishesBenchGroceriesTaxi- Potting soil (ordered)
- Repot some basil?
Shatoya
Silicon Valley Bank thoughts.
They had enough assets to cover their debts (Deposits). They just didn't have the 'Liquidity'. In other words, some people wanted their money, and SVB didn't have the cash to cover the withdrawals.
Where was the money? Where every bank keeps its money... in loans and investments. Therein lies the problem I don't hear anyone talking about.
SVB was heavy on US government bonds, which was their most liquid holding aside from a minor amount of actual cash. When it came time to convert US government bonds to cash, it turned out nobody wanted their old low-interest bonds, and they only sold at a serious loss.
Allow me to repeat that. Nobody wanted their US government bonds at face value. Right now US bonds are not considered a good investment. Being heavy in bonds cost them money, and ultimately the entire bank.
Tell me how I'm wrong. Please.
And for something very different....
Who would have guessed that a Man 'O War Virtue would pair quite nicely with V8 vegetable juice? Might be slightly healthier than my usual glass of whisky, and I'm cutting back on the whisky. The juice is tasty in the low-sodium version.
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