Just to put a face on this, we all see what’s going on with interest rates, 3.56% in the two-year. Just think about this, on March 8th, it closed at 5.07%, the highest yield close since 2007. Now we’re at the lowest yields since September. Ten-year, and we did the charts a month ago, and about five months ago, I’d stake my claim here, 4.25% is the high. It was the high back in October. We never came back and challenged those fall levels.

It was clearly the high yield close but, man, look at how far we’ve fallen there. Is this really a banking crisis? You know what it is. It’s a Fed crisis. It’s a rate-hiking crisis, it’s a crisis built on a crisis we never solved. And now we have walk backs, takebacks, and Treasury Secretaries changing their minds. Is there any wonder there’s all this volatility in the market?

[It’s all of the above, and more. It’s a monetary crisis that has been fifteen years in the making, when the Fed rapidly expanded the monetary supply to deal with the anti-growth policies imposed by the Obama administration in response to the 2008 financial crisis. That set the stage for massive inflation, touched off by Biden’s overstimulus in the midst of a supply-chain crisis created by massive shutdowns in the pandemic. And the rate hikes have been necessitated mainly because Biden and his team are pursuing similar anti-growth policies which prevent a supply-side solution to inflation. This is a leadership crisis. — Ed]