US banks are sitting on a $675B paper loss from their bond portfolios that they bought before interest rates began rising last year

#SVBCollapse was significant, but this is pretext for helping US banks recover their losses by socializing costs with Fed money printing.🧵 How did banks lose all this money? They bought a lot of low-interest bonds last year, whose value decreased drastically when the Fed began raising interest rates.

Remember, existing bonds lose value when new bonds that pay more interest can be bought on the open market.