Kelly Riehl

@historyinmemes Pirate defense

Do you know why they're spraying water?

Banks got ton of new deposits in 2020/2021 from the stimulus that went out, and they had to invest them somewhere. Mostly they went into assets with little/no credit risk but that had duration risk (e.g. Treasuries, mortgages). And then the Fed sucked liquidity out.

If you look closely, you can see the current inflation.