Several banks, including Silicon Valley Bank and Signature Bank, were shut down by the FDIC in March, and pressure is being felt by many regional banks. The Federal Reserve Board increased interest rates by 25 basis points instead of the expected 50 basis point increase due to higher-than-expected jobs data and CPI index, which caused a relatively stable but volatile economy. Private lending rates are good, and capital aggregators are pricing around 6-7%, giving banking a run for their money. Balance sheet lenders are the real winners of this recession, but diversification of capital or preparing for scratch and dent are alternative strategies to prepare for Q3, Q4, and Q1 of 2024.