Weekly Stock Bullfinder - Week of 12/18

368 Views17 Dec 2023 21:30
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SUMMARY
  • Looking back, March 2023 presented a significant “wobble” to the U.S. Federal Reserve’s monetary policy tightening campaign as the sudden bank failures, the largest since the 2008 financial crisis, of Signature Bank and Silicon Valley Bank in particular, caused the Fed to step in as customers rushed to withdraw their deposits while these banks did not have enough liquid funds on hand to satisfy those customers’ cash requirements.
  • One reason for these bank failures was that normally safe investments in U.S. Treasuries, purchased at the highs, began losing money due to their duration mismatch as interest rates were rapidly increased by the Federal Reserve.
  • In came the Fed’s BTFP program to the rescue which was setup to eliminate a financial institution’s need to rapidly sell securities, and is open to federally insured banks, savings associations, and credit unions, as well as the U.S. branches of foreign banks.
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  • Weekly Stock Bullfinder - Week of 12/18
    17 Dec 2023
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