Will Cutting Rates Even Work Next Time?

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Will Cutting Rates Even Work Next Time? Anonymous Mon Mar 20 04:03:49 2023 No.54216700 [Reply] [Original]

Hear me out, if this whole fiasco is the result of a bunch of banks holding massive unrealized losses on their balance sheets due to buying a ton of hold to maturity MBS and treasuries with yields at a fraction of current rates, what incentive will they have to buy these "low-risk" bonds next time the economy is tits up and the fed cuts rates to zero or close to? Is this the end of the low rate 30 year fixed?

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/biz/ - Business & Finance