• Mar 27, 2023
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  Possible liquidity in banks issue, if citizens take to heart that they're making like 1% or maybe less on their deposits, but that t-bills make 5%, they'll all move their money out of deposits. - Gunlach

  
  

  Fed should have raised rates faster, Gundlach said, and instead inflation came. He thinks if the Fed had raised rates faster, the losses (sbv etc) would have been less in the long bond, because the long bond was forced to itself price in inflation, because the Fed wasn't fighting inflation.
  
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  <div>Possible liquidity in banks issue, if citizens take to heart that they're making like 1% or maybe less on their deposits, but that t-bills make 5%, they'll all move their money out of deposits. - Gunlach</div><div><br></div><div>Fed should have raised rates faster, Gundlach said, and instead inflation came. He thinks if the Fed had raised rates faster, the losses (sbv etc) would have been less in the long bond, because the long bond was forced to itself price in inflation, because the Fed wasn't fighting inflation. <br></div>

  Possible liquidity in banks issue, if citizens take to heart that they're making like 1% or maybe less on their deposits, but that t-bills make 5%, they'll all move their money out of deposits. - Gunlach

  
  

  Fed should have raised rates faster, Gundlach said, and instead inflation came. He thinks if the Fed had raised rates faster, the losses (sbv etc) would have been less in the long bond, because the long bond was forced to itself price in inflation, because the Fed wasn't fighting inflation.
  

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