Interestingly, Treasury Direct was down yesterday. The website allows investors to quickly move large sums from banks into US Treasury holdings. I doubt this story ends with SVB, as the current inverted yield curve is a total disaster for banks. Large accounts will not keep their money in a bank yielding 2% if they can get over 4% from the Treasury.
Pardon my ignorance but, if banks create new money out of thin air to lend it, why can't depositors withdraw their "old" money?
Interestingly, Treasury Direct was down yesterday. The website allows investors to quickly move large sums from banks into US Treasury holdings. I doubt this story ends with SVB, as the current inverted yield curve is a total disaster for banks. Large accounts will not keep their money in a bank yielding 2% if they can get over 4% from the Treasury.