Posted on 03/10/2023 4:53:16 PM PST by EBH
Transcript: 0:00 Bank runs have started I'm your host 0:03 Steve Van Meter and thanks for joining 0:04 me today and our lead story today 0:06 there's Widespread Panic in the U.S 0:08 banking system as fears of a systemic 0:11 liquidity crisis are causing depositors 0:14 to flee in mass
now those of you who've 0:17 watched this show for a long time know 0:19 that I've said that the small and 0:21 mid-sized banks will not be immune 0:23 during the next Crisis that they're at 0:25 risk they're going to face liquidity 0:27 issues and many of them are going to 0:29 outright collapse and we're seeing that 0:31 starting now with Silicon Valley Bank
0:34 but the question that seems to be on 0:36 everyone's mind is why is this affecting 0:38 them who is causing this problem and the 0:41 shocking thing is most people don't 0:43 realize who's doing it including the 0:45 people who are causing the problem which 0:48 we're going to get to in today's show 0:49 because I want you to understand that 0:51 what we're seeing the Silicon Valley 0:53 Bank today is just the beginning
let's 0:56 head over to Wall Street Journal where 0:57 we picked today's story up with a 0:58 headline Banks lose billion in value 1:01 after Tech lender Silicon Valley Bank 1:03 stumbles well remember we're going to go 1:05 back here just a little bit as 1:07 Thursday's route is another consequence 1:09 of the federal reserve's aggressive 1:10 campaign to control inflation Rising 1:13 interest rates have caused the value of 1:15 existing bonds with lower payouts to 1:17 fall in value and just so happens that 1:19 Banks own a lot of these bonds including 1:21 treasuries and they're now sitting on 1:23 giant unrealized losses so this is what 1:26 you're going to hear a lot of and I want 1:28 to do give some credit to Wall Street 1:29 Journal because as we go through this 1:31 they've kind of got a large part of the 1:33 story right but a lot of people are 1:35 going to focus on the fact that the 1:37 banks have these upside down bonds 1:39 they've got these unrealized losses and 1:41 suddenly this is going to cause a 1:43 collapse in the banking system and the 1:45 answer is on the surface that's not 1:47 really the reason why
it's there's 1:49 something else that has to happen which 1:51 is happening at Silicon Valley Bank 1:53 which is going to happen at other small 1:55 and mid-sized banks that are going to 1:57 cause them problems that the mega banks 1:59 are not going to face 2:02 large declines in value aren't 2:03 necessarily a problem for banks unless 2:05 they're forced to sell the asset to 2:07 cover deposit withdrawals and that is a 2:09 key thing a part of the story and again 2:12 Wall Street Journal got that right as 2:14 most banks aren't doing so even though 2:16 their customers are starting to move 2:18 their deposits into higher yielding 2:19 Alternatives yet a few banks have run 2:22 into trouble this week sparking fears 2:24 that other Banks could be forced to take 2:26 losses to raise cash so let's try to 2:28 understand what they're talking about
total view time is 15 minutes and well worth the time and education
except nobody is panicking
I think it won’t be widespread. Silicon Valley Bank is going under, but that is because this whole recent Silicon Valley madness is hot air money-burning nonsense, where some people lucked out to have a lot of money, but everyone else will lose.
I don’t mean everything. Producing actual microchips is good, but that is not recent. Recently it has been this nonsense about crypto tokens and whatnot!
Crypto is a very small part of Silicon Valley.
88% was uninsured. That’s not bank money; that’s junk investing dressed up like a bank, the same as a guy with junk dressed up as a (supposed) lady.
Don’t worry. We’ve got a demented, lyin’ ass pedophile in charge. 80 million dumbass morons can’t be wrong. Joe’s got a grip on it.
Watch the depositors find out their cash went to the Democrat politicians and the DNC.
All your deposits are held by the DNC and Democrat politicians. At least that’s how FTX failed.
Well about 1 year ago we were placing sanctions on Russia to ruin their economy. Their economy is stronger today...ours is the one that is weaker.
Well to be fair, despite the fdic saying all depositors are covered up to $250,000, fdic basically can’t cover anyones deposits if even 1% of depositors need it.
This time if banks need money they seize your accounts and do a bail-in. The laws were set up for them to do this after the last govt bailout.
So get some physical fiat notes out of the bank now if you don’t have anything for emergencies.
The Bail In Act was one of the first things Barry the Muslim did
It was a high-risk lender.
Biden will bail it out anyway.
Just watched that the other day.
I am not panicked. I am ticked off (again) because somehow I suspect that my kids will pay for this (again).
Bailouts for my children to “private banks” that don’t manage their money well should be illegal, but all they have to do is declare its too big to fail and it will happen again, executives will keep bonuses, and no regulators will be held responsible (again).
This all feels so familiar.
I don’t think you are seeing that properly, as I understand it.
The depositors are the only insured entity, here. No depositor is “junk.” They put in raw cash.
Accounts can hold much more than $250,000. Any amount over that is not insured.
That means a lot of accounts had much more than $250,000 in them. Those monies might be lost.
I personally believe bank owners should lose their money before those deposit accounts over $250,000 are lost.
I think we are not as far apart as it might seem.
When I referred to junk, I meant the nature of the investment: if someone is throwing a few million bucks at a tech startup, that is the equivalent of a junk-level bond, meaning there is a risk of loss for the hope of a higher rate of return than in, say, a regular savings account at a bank. Frankly, a bank should not be in the business of collecting money to invest in risky ventures; that should be the venue of investment firms under SEC rather than FDIC regulations, where potential investors are told up front that they could make money, or they could lose everything.
Anyone who keeps more than $250,000 in a bank account is not showing good financial sense—at the very least, spread out the money across insured accounts at different locations—but the bank also has a fiduciary duty to guide its customers/depositors in understanding their risks and rewards.
Finally, I agree with you that the assets of the bank, including the assets of the owners of the bank, should be clawed back before the rest of us have to pay out in FDIC insurance claims.
“...Widespread Panic Hits the Banks as Fears of a Systemic Liquidity Crisis Cause a Massive Bank Run...”
As well they should with this handjob as president.
Small time media charlatans and social media nuts try to instigate bank runs
No, I think Steve explains the situation very well if one took the time to watch his video.
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