Why U.S. Treasuries Aren't 'Risk-Free' Anymore

WEALTHTRACK
WEALTHTRACK
21,358
10
Published 2023-04-21
Jamie Dimon, Chairman and CEO of JPMorgan Chase, is considered the best financial executive in the country and recently weighed in on the banking system's recent turmoil. He believes that simply satisfying regulatory requirements is not sufficient in managing risks, which requires constant and vigilant scrutiny as the world evolves.

He also points out that most of the risks in the U.S. banking system were hiding in plain sight and that recent changes in regulatory requirements would not have made a difference in what followed.

Bill Wilby is a retired professional money manager with a Ph.D. in International Monetary Economics who will discuss the problems with U.S. Treasuries and why financials are uninvestable.
#treasurybills #stockmarket #stocks #bankingsector

00:00 Hello!
00:40 Introduction
03:36 Interview with William Wilby
20:39 One Investment
24:13 Action Point

WEALTHTRACK episode 1943 broadcast on April 21, 2023
More info:
Bookshelf: Chip War: The Fight for the World's Most Critical Technology
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All Comments (21)
  • @timtrampenau3050
    Only a retired multi-millionaire perhaps billionaire says I only keep 10% in cash and 90% in equities, his 10% is in the millions. As a retired small time investor I realize that some opinions of the guests on this show are irrelevant to most of the viewers, but I continue to watch…
  • @trevnral1
    Long term treasuries are not risk free if you might have to sell them before they mature. I know that. Consuelo knows that (she's covered it many times). Mr. Wilby knows that. I would expect bankers to know that. Mr. Willby suggests that somehow banks were forced to buy long term treasuries because the Fed issued so many. I don't follow this at all. How is it that most banks somehow evaded this coercion? Why couldn't SVL have purchased safer, more liquid investments, like short term treasuries? Alas, Mr. Willby does not explain. Like Mr. Buffett says, "It's only when the tide goes out that you learn who's been swimming naked." SVL was chasing return and the tide went out. Surely the Fed has many faults but I don't know why they are responsible for bad banking in general. But what do I know.
  • @gregoryjames7976
    An other excellent presentation. Really found Mr Wilby’s prospective of managing his retirement accounts in retirement very helpful. Having retired from semiconductor development I would agree ASML is a definite key stone to chip technology advancement. I would include Ziess in that as they (at least when I was there) produced components for the ASML tools.
  • @repriser9876
    Awesome interview! Fair and frank. No salesman here. There are a lot of digital infrastructure projects as well. AI is progressing every day last 50 years. It might soon be a dominant force, still not sure when revolution is.
  • @apothe6
    Very insightful. Bearish takes have become commonplace but when they're nuanced and reasonable I put a lot more stock into them.
  • @slovokia
    The Fed is not selling the treasury securities that it owns. It just lets some of them mature without buying new ones. That has the effect of making more treasury securities available for purchase by other economic actors. All other things being equal that would tend to push up yields.
  • @bobkent2334
    I wish Mr. Wilby would discuss why he has no confidence in precious metals. I think a chunk of PMs, as one part of a diversified portfolio, makes a lot of sense, especially when faith in currencies is taking a hit.
  • @tmclean9
    Great interview! Bill knows his stuff. I think his take on ASML us spot on. Agree that it is expensive, but they clearly have a monopoly on the machines that make the most advanced chips. Read "Chip War" by Chris Miller.
  • @chrispflanz3845
    Excellent interview! Thoughtful, measured, and worth an attentive listen. USMA!
  • @jimwolfe4286
    Great Interview and Intel, Consuelo !....The " Long Gray Line" ..Never lets US down......GO ARMY !.....
  • @cantrader2601
    Are longer term treasuries not a risk only if you buy them at the wrong time (ie before the end of the rate hike cycle)? Once we are getting closer to a recession, where is the risk in say TLT?
  • @wholeNwon
    The Federal Reserve is advised by 400 Ph.D. economists. Their work is on-going and likely always will be. Extrapolating one or two very imprudent allocations of capital to particular reserves and to thusly infer much broader cataclysm would seem foolish. I will grant that pushing capital into the banking system hoping that bankers would use it to create stimulatory loans was naive in the extreme. Rigor should be imposed on the banking system when that becomes possible. It should include restrictions on the way in which banks actually create capital out of liabilities. Is federal paper (Treasury and agency) investible? Of course it is with holders all over this planet. Of course buying power is diminished during periods of inflation. If you aren't buying, that's relatively irrelevant. As inflation is brought down (sometimes with great difficulty), greater value returns. In the meantime, the taxpayers continue to guarantee the dividends.
  • @guy7018
    I've been in BI/AI for years and most of these software companies have never made a profit. They pay you only when they get acquired. I've been shorting the AI pop recently because this is a long tail investment that will get crushed temporarily. Buy the right companies when they drop 50%
  • @adrienned5640
    What's the name of the? I can't find it anywhere. HELP!