Commentary
“The 10-year note yield is where it was in mid-October [2022] when the funds rate was barely north of 3 percent. Bond market is saying recession/disinflation is in our future,” said economist David Rosenberg, on Mar. 9.
This statement was issued before Silicon Valley Bank (SVB), Silvergate Bank, and Signature bank had their collective meltdowns.
When I began writing this article—last Monday—these banks were still in operation. Then they collapsed. At the time, Silicon Valley Bank was the sixteenth largest bank in the United States, and the failure of Silicon Valley Bank and Signature Bank now rank as the second- and third-largest failures in U.S. banking history, just behind Washington Mutual in 2008….