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by csomar
1180 days ago
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The big revelation is that deposits in a bank have two risks actually: A counter-party risk as you mentioned, but also a market risk. Inflation was/is in the double digit across the Euro and US economies. And that's for the government (CPI) numbers. People never considered these risks before. A bank is a bank is a bank. And in the developed world, inflation is low. Now you have a situation where both narratives are being challenged. The system is under lots of strain. |
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