System at tipping point

Over the last week, the entire financial system in Us is thrown in doubt. We have the 16th largest bank in US called silicon valley bank under receivership and many startups are going concern as their funds are tied up.

This seriously put a dent on Us' innovation if these startups and depositors fail to recover their uninsured deposits. I am not surprised that Some regulatory parties will eventually do something for the system. It may not be for silicon valley bank but for some other banks as the domino effects could be tremendous given that panic is likely to spread with more bank run.

Gladly, a resolution came that depositors funds are guaranteed and not the equity investors and bond holders of svb. But this series of quick events also triggers me to think that federal reserve has a very tough situation to hike rates fast and aggressively.

I expect 10 year bond yield to have peaked around 4 percent for the time being as any aggressive movement could tip the entire system into big issue..

This should not be construed as any investment or trading advice.