bradmillscan on Nostr: Jim Rickards in a recent article said that the real problem is not a banking crisis ...

Jim Rickards in a recent article said that the real problem is not a banking crisis but simply a shortage of collateral (Treasuries) to support bank derivative positions.

He said that leads to bank failures and the regulators don’t understand the problem.

Is this true?

How can this round of bank failures and insolvencies be caused a shortage of collateral? Does he really mean that the derivatives positions have ballooned while the value of collateral (bonds, mbs, stocks) has dropped?

If this is true, is it likely the regulators, the Fed and the Treasury don’t know about this shortage of collateral?