pull down to refresh
0 sats \ 2 replies \ @TwoLargePizzas 12 Mar 2023 \ parent \ on: ELI5 – What's happened to Silicon Valley Bank? ☠️ bitcoin
I would argue that buying government bonds is still investing the money so it's a little misleading to say you invest $0. Yield always comes with some risk.
It's a bit like lending the $100 to your friend and he says he'll pay you back on Thursday when your rent is due on Friday. Yes you are owed the money before it's needed but it's not the same as having the money.
I would argue that buying government bonds is still investing
You're not entitled to an opinion on things that are facts. Government bonds are reserves in banking. That's not my opinion, that's how banking works.
Yield always comes with some risk.
reply
A quote from that very page...
In practice, the risk-free rate of return does not truly exist, as every investment carries at least a small amount of risk.
reply