Why Do U.S. Banks Keep Failing?
Вставка
- Опубліковано 4 тра 2024
- The collapse of Silicon Valley Bank, Signature Bank and Credit Suisse were a harsh reminder of how quickly a trusted institution could fail, putting billions of dollars at risk. Over 550 banks have collapsed since 2001, according to the FDIC. So what exactly causes a bank to fail? And what implications does it have on the U.S. economy?
Chapters:
00:00 - Introduction
01:41 - Chapter 1
05:28 - Chapter 2
08:55 - Chapter 3
Produced by: Juhohn Lee
Edited by: Nora Rappaport
Animation: Jason Reginato
Supervising Producer: Lindsey Jacobson
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Why Do U.S. Banks Keep Failing?
It is a government inspired crisis this time. The Treasury have to sell Bonds to cover the trade imbalance and the government spending imbalance. In order to sell them they have to raise interest rates and the old long-term, low risk, low interest, AAA investments (including Treasury Bonds), held by the banks (often due to government regulatory policy), become next to worthless. The next milestone is the 15th when the government issue a new batch of Bonds. I have approximately 350k stagnant in my portfolio that needs growth. What is the best way to take advantage of this downturn?
Indeed, you are correct! Economic downturns offer numerous prospects for ordinary individuals to create wealth from the ground up. Nevertheless, seeking guidance from an investment planner might be necessary if you desire a more assertive return.
In the world of finance, recessions are prime opportunities for wealth creation. When my port-folio suffered a significant loss in April of last year, I realized the need to enlist the expertise of a financial consultant. With her guidance, I have not only recovered from my losses but also generated a profit of 250k. The knowledge and skills I have acquired through this experience have been invaluable in my journey towards financial success.
That's fascinating. How can I contact your Asset-coach as my portfolio is dwindling?
My trustworthy advisor, Natalie Lynn Fisk, works for a fee only. She actually offers free consultations and always has the interests of her clients at heart. She and I have been colleagues ever since I turned 40. She is a busy woman, but if you can catch her attention, she might be able to help.
Simply by pasting Natalie’s full name into my browser, her website immediately displayed. You've spared me from doing a lot of tedious research, so thank you.
Like most US companies, they operate in a very protected economic and political environment. With no real competition and no real consequences for their mismanagement.
“Most” companies don’t operate that way. Most companies are subject to free market forces that punish them for bad decisions and mismanagement and theft.
Lies again? Pig Heads Wild Boar
exxon would be moving on in ukrainian Oil companies to "help them" so they say.
Oh no they saints , wholesome they and honest white institutions don't do corrupt , immoral things white is pure
no consequences ? you are moron or what ? there are consequences , they lost their job+ money
Don't privatise profits and socialise the losses
Wow. Amazing. When there is record profits, government doesn't ask for any. But once the losses come the government wants to help. With what money?
Socialize the loss= bail out
Privatize the profit= deregulation
Welcome to capitalism
Well yeah. We need to get politicians to stop doing that, but Money = free speech, and corporations have more of both.
It's so simple and so perfect.
The negative impact of SVB and SI debacles has been reflected in the regional bank ETF (KRE) which has witnessed a decline of over 20%. This event has triggered contagion effects, dragging the entire market lower. However, historically speaking, a localized and narrow contagion of this nature presents an opportune time to invest in strong, financially stable companies with substantial cash reserves on their balance sheets.
deed, the recent market downturn serves as evidence that a vast majority of individuals lacked a sufficient understanding of the underlying financial dynamics at play.
@Zahair O'Brian actually subscribed for a few trading courses but it didn't help much, been getting suggestions to use a proper financial advisor, how did you go about touching base with your coach?
@Zahair O'Brian Researched her online She seem very proficient, I wrote her detailing my Fin-market goals and scheduled a call.
The Ponzi scheme of Capitalism is falling apart
“Credit is the lifeblood of the economy”. That’s the problem with our system right there.
that's what i was thinking as well... if you can't pay cash for it then you CANNOT afford it
@David Pugh Credit literally helped with the economic boom. Mortgages helped ppl finally afford homes when they couldn't before. Buying with Credit Cards is the best thing to do. You get cash back and rewards. All cash does is depreciate due to inflation
@@BigPoppaJ08you mean like the mortgages that caused the 2008 housing market crash?
@@BigPoppaJ08By “afford” houses you mean artificially inflate the prices of homes by offering 0 percent rates for 10 years than by many multiples than yes you are correct homes became more…..🤡affordable.
Credit = falsifications of data. Real economy is based on goods like precious metal and oil. Only fools will not peg something to nothing, like usd
One word, de-regulation.
The banking and finance sector for over 40 years used to be boring, like textiles or steel manufacturing. Then all of a sudden Reagan and Clinton de-regulate everything like crazy and we start having crashes every 5-10 years, with each one getting worse and worse and threatening the national and now global economies.
Re-regulate the banking and finance sectors and return them to the low profit, stable, and predictable entities they used to be, and this nonsense will end just as quickly as it began.
You also have to stabilize the economy (promote growth and limit inflation) and make sure to only hire competent and unbiased people who deal with economic policy, both in politics and at these banks. Those are also contributing factors to these bank failures combined with deregulation.
Plus we’ll have far less insufferable finance bros to deal with.
But if banks are regulated, isnt that....................communism?
@@julm7744 Theranos, Galaxy Note 7, Bixby, Google Glass and Windows Phone is failing. We just need to learn to make low cost failure
Remember the depression, well before Reagan
What happened to SVB is really scary, and goes to show that no corporation, however big, is immune to collapse. I have always had a deep-seated mistrust for corporations. I have plans to pull out most of my money, but don't know what to do with $ 350k sitting idly. I'd like to go into the stock market, maybe. Any ideas?
All big corps are just a cohort of centralised system working together, and any damage to one can have a dangerous ripple effect on every other one. I learned a long time ago to not trust corporations. Most of my money is in the stock market and my businesses. I keep only what I need to spend in my checking account.
Ironically, these are the conditions in which life-changing money is made by those who remain calm, patient, and take controlled risks. Volatility goes both ways. The banks are in a big crisis. The market looks very shaky. The bigger the red candles, the bigger the green ones. I have made over $ 280k in the last 4 months by investing through my FA.
Wow. I've heard similar success story from people who work with advisors. How do I get in touch with yours, please?
I am being guided by "Deborah Sue Bohn" who I found on a CNBC interview where she was featured and reached out to her. She has since provided entry and exit points on the securities I focus on. You can look her up online if you care supervision.
Thank you for this tip. it was easy to find your FA. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her resume.
What a statement, damn. So it's said that Amazons Lbtncrp300x is just about to launch and I think that will really change a lot of what was happening in the previous years, 2023 will shine yay
About the current bank situation, I'm really concerned. I am worried about a lot more if a bank the size of SVB may fail. I have a friend who manages a fast-growing startup and was severely impacted by the bank run. I have taken more than $840k out of my bank. Since the FDIC only provides coverage up to $250K, an implosion could have negative consequences. presently want to invest in the stock market. Does anyone have any ideas on how I might proceed?
We fail to realize that banks are commercial enterprises that are driven by greed as well. The over-leveraging of assets by banks starting in 2020 was one of the factors that led to SVB's collapse. I've never felt secure keeping a large sum of money in a bank. In other words, I invest through my financial advisor, reap the benefits, and then spend the money.
We were traveling in the same direction, my wife and I. I withdrew my money over the past two years and invested with her wealth manager. I won't be able to match her earnings over time, but at least I make more. Haha.
@@Igorstravinsky788 Would you mind telling me how to contact this specific coach using their service? You seem to have the solution, as opposed to the rest of us.
@@thomaslewis514 Through my wife, I got in touch with Ruth Loralann Brennan, and I sent her an email. She is guiding me. She has since supplied me with opportunities to buy and sell the securities in which I am interested. You can hunt her up online if you require care supervision.
@@Igorstravinsky788 Thanks for the advice. The search for your coach was simple. I investigated her well before using her services. Considering her résumé, she appears competent.
I feel that the last bull run was bolstered by all the money being printed. Major returns next bull run but I think they will be tamer in my humble opinion. A 10x on $lbtncrp300x is and a 15x on polygon are fair considering how much those two coins are interwoven into the entire crypto ecosystem
I already converted all my ETH to $lbtncrp300x , now I feel like moving all my BTC to ADA as well.
The reason is simple:
Fractional lending.
If I have $100 and I lend $1000, then no matter what the regulations are, at some point I'm going to find myself in trouble.
If you have 100 keep 300 and lend 700 (you won't fear bank run)
Credit unions > banks
Well, credit unions are what banks used to be now
@@Demopans5990
Credit unions can fall to the same things that banks do.
They lend more than have as well. Maybe not to the same degree.
@@ddavis8988
Well, with credit unions, the depositors are also a bit like the shareholders
@@Demopans5990
True. But the risk is still there.
Because you're not removing the problem which is lending more than have.
Let your voice be heard the Lbtncrp300x army is there to make the change we need, not all heroes have capes you know
I'm DCAing in $lbtncrp300x as well. ETH heavier DCA and ALGO. I'm taking your advice and starting Google tomorrow with a 50 dollar purchase and continuing Microsoft and Apple. VTI and VOO on another app and longterm portfolio. Here we go family!
I love your story, your message, and being a young black man, are an amazing and vital role model with no fluff content and a great sense of humour (there was a scene where you went to walk off camera which cracked me up!lol ) Keep up the great work and I'm on the same wavelength mentally, carpe diem! Big love from Spain! :) *VRITKN300*.
Myself during this Bear Market only trying to focus on BTC, $lbtncrp300x , ETH, SOL, MATIC. not losing sight of BNB and GALA. 🇨🇦
Banks fail whenever the money go "bye-bye." 😫
“There’s more and more of a concern that incoming data is revealing that the Fed might be a little bit behind the curve than maybe they expected heading into this year,” said Bipan Rai, North America head of FX strategy at CIBC Capital Markets in Toronto. In my portfolio, I'm noticing more red than green. How are other people in this market raking in over $350k gains within months.
I'll suggest you find a mentor or someone with experience to guide you especially in this recession
@@graceocean8323 You will need a strong FA to help you through the current market turmoil. I've been talking to a coach named Maria Juliana Ramirez for a long now, mostly because I lack the knowledge and energy to deal with these ongoing market circumstances. I made more than $220K during this slump, demonstrating that there are more aspects of the market than the average individual is aware of. Having an investing counselor is now the best line of action, especially for those who are close to retiring.
@@zoeytank2921 we’re only just an information away from amassing wealth, I know a lot of folks that made fortunes from the Dotcom crash as well as the 08’ crash and I’ve been looking into similar opportunities in this present market, could this coach that guides you help?
@@hannahdonald9071 My Financial Advisor is MARIA JULIANA RAMIREZ. I found her on a CNBC interview where she was featured and reached out to her afterwards. She has since provide entry and exit points on the securities I focus on. You can run a quick online research with her name if you care for supervision. I basically follow her market moves and haven’t regretted doing so.
I'm literally holding onto straws right now, so your tip couldn't have come at a better moment! I plan to call her after doing a quick internet search for her.
It will take some time to understand how Amazons $lbtncrp300x is having the most impact in these times. After all the downswings and failures of last year it's about time that someone integrates assets into a useful scenario and that's exactly happening with this asset right now. It will be exciting to see how they develop this product in the future. What do you guys think? Would like to hear some opinions
I'm really worried about the current bank crisis. If a bank as big as SVB could fail, I fear for a lot more. I know a friend who is running a high-growth startup, and was badly hit by the bank run. I have pulled out more than $340k from my bank. After all, the FDIC covers only up to$250,000, and the implosion could have bad effect. Looking to invest into the stock market now. Does anyone know how I could go about it?
We underestimate the fact that banks are corporate entities also governed by greed. Since 2020, the banks have been over-leveraging their assets, which was one of the reasons for SVB's implosion. I have never been okay with keeping much money in the bank. I simply invest through my financial advisor, collect my profits, which I then spend.
@@Aziz__0 I have learned to not trust corporations. I was badly hit by the '08 financial crisis. Since 2019, I've just been focused on investing through a financial advisor, and it has been paying off, and I'm never going back to banks full time.
@Margaret My advisor is ‘’NICOLE DESIREE SIMON, a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.
pensioners in Germany started to invest in rare earth and precious metals after 2008 because they found out the hard way keep money in banks make them lose money due to inflation and stocks like gambling no one knows when a company will go bust that's their way of not dying poor
💩💩💩💩💩
1. You allowed them too much power & given many loop holes 2. Your oversight isn't working 3. You keep bailing them out so they never learn
Super cool video ! Do you think amazons Lbtncrp300x will pump before ETH ? I ask myself if there is a pattern in the order of the altcoins pumps.
Maybe it's time to go back to the days when Glass-Steagal was fully in force. There's a reason why the US stock market wasn't affected by the 1996-1998 Asian financial crisis, because banks acted a "financial backstop" for the US economy.
Not just US Banks! By understanding how Banks work, it becomes clearer why they ultimately fail. Ever heard the saying cash is thrash? Just hold your money in more stable and lucrative ways and save yourself the stress.
Easier said than done. Besides them, what are even safer options? Volatility and risks abound in all the other sectors.
@@ecarlson8943 Sorry to jump in, but there a lot; gold, stocks, stable businesses etc. I know this cos personally I made my first million late last year from stocks and bonds which I have used to set up and put into the other things. The only downside is that you could also lose your funds which is easily remedied by using a professional or making very thorough inquiries. Good luck.
@@marlenaaj ...Nice approach... I have been considering going into one or two of the listed ventures for sometime now especially stocks with no knowledge of how to go about it... You mentioned using pros, if its not a problem, do you mind telling if you used one or recommending a good one? I could definitely use one right now... I look forward to you replying...
fr man. can't trust banks anymore
@@thehunter9853 Yeah, I used one. I'm not so knowledgeable in the field and I battle with time constraints. I'm not really sure I'm permitted to go into details here, but mine is Adam Abraham Keith, and you could look him up yourself.
Well done, excellent reporting. For more, i highly recommend 60 Minutes’ piece on the FDIC from back in 2009. Truly eye-opening stuff.
They actually document what an FDIC bank seizure / closure looks like, in real time.
know
Two words : Greed and NoChecksandBalances
😂
Did you just turn 4 words into one?
One word: Bailouts
1 word: thatssixwords.
I'm glad I got into trading when I did because it was a turning point for me financially it was my best decision so far
As an independent woman, I started my first investment plan with just $1000 and am now earning a weekly income of $5000 trading cryptocurrency with my personal broker. Nicole Brusher
Inspiring! do you think you can give me advice on how to invest in a healthy way like you do? *
you can communicate with her on telegram
©Fxbrusher "
It's amazing how others deal with Ms. Nicole, I'm currently doing my 5th trade with her and my portfolio has grown tremendously thanks to her.
Great video. I was thinking to spread my money to different banks from the beginning, but as the video points out, wait until I'm at the cap of insurance.
Thank you so much for the encouragement. I’m all of that of what you said, it’s time to take action and I will. I will continue to watch your videos and use some of your material to change & mold things for me!! Thank you brother and God Bless you!! Continue to keep US AWAKE !! 🙏 ❤❤ *VRITKN300*.
Credit is the blood of the economy and too much credit creates increased money supply which causes inflation. If tightening credit crashes banks the system is broken. These regional banks needed to make riskier commercial loans and so on to meet the stress test set by Dodd Frank, but increased interest rates dropped the value of the treasuries they held and without increased deposits they simply ran out of cash as a shrinking economy due to higher rates triggered withdrawals. This is something they should have saw coming. Typically banks keep deposits for 5 years on average but runs are real threats with historic personal and company debt levels, tightening rates, and high inflation. Far more bank failures are coming. Regional banks make the riskier loans to small business and on mortgages. This will screw small business and working class individuals, while the rich have access to credit from big banks. This is the cantilion effect. This is horrid policy. Nightmares in the way. Shame on the federal government!
0:14 lol who gave this guy a 5 shots of epresso with 5 hour energy chaser look?
Lmao
😳😳😳😳😳😳😳
😂
Credit Unions are the way to go!
Facts
Online banks
Basing an entire economy on credit and debt is probably not a good idea.
@@blacklyfe5543 online banks are still a risk. They're just like the other regional and national banks
Great video, now probably everyone can see the problem clearly and know how to behave.
4:08 this dude is a robot! Did not blink once during his whole part!
The bank crisis isn't over yet, and experienced individuals know credit crises don't end quickly. Some find it amusing that some think it's resolved, but in reality, we're headed for a major economic downturn due to this credit contraction.
After the '08 financial crisis, I've learned not to trust corporations. Since 2020, I've been investing with a financial advisor and have had no major losses, so I'm not going back to relying solely on banks.
Many overlook that banks are profit-driven businesses. I don't trust keeping a large sum in a bank, instead, I invest with guidance, enjoy the benefits, and save for retirement.
@@VickyAlvyWell said . Personally ,i diversify my investments across various markets with the guidance of my financial advisor, Stacey Lee Decker. I’m happy about this decision . This routine has enabled me to achieve attractive good returns through high dividend-yield stocks, digital assets, ETFs, and bonds.
With high inflation, I want to invest my idle cash. Thanks for sharing her impressive resume that I found online!
You’re welcome. I’ve made over six figures passively with Stacey Lee Decker’s guidance in a strong financial community. Market crashes don't affect my returns.
I love how Americans will never learn that after several years of hindsight and retrospection, any problem can be boiled down to something a former U.S. President singlehandedly messed up. It seems obvious in a two-party system where all the party in power has to do is be slightly "better" or "more desirable" than the other party, all while being solely motivated by "getting back at" the other party for being "wrong". The standard for excellence could not be lower in a system like this.
Banks keep failing because of a lack of standards.
@Bart Solari the standards is made by the bankers. How on earth banker would limit themself to make money, a lot of loopholes is made to make themself rich. Deregulation is a cancer in usa
3:12-3:56 dude literally summarized 2008 financial crises in 44 seconds
Thank you!
In the present day, financial risk means safety and timely settlement of funds. Exchanges are collapsing, banks are collapsing, so the question is where can we invest without the fear of losing our capital in any worst case or doomsday scenario.
Lets see, where to start... Greed, The FED, higher interest rates, deregulation, lack of jail time punishment and so on. Start putting bank execs in jail, regulate more, lower the interest rate and get rid of the FED... that will solve most of the issues
To the banks 🏦 that denied me loans and overcharged me fees and interest, bad decisions on their part. I’m glad they failed, karma😅
Because they do partial-reserve banking. Never full-reserve/100%-reserves banking.
The banks need to do 100%-reserve banking. Bank runs are literally impossible then.
You are a mor on! 100% reserves, so no lending?
@@rack9458 Sure you can lend, look up the difference between demand deposit accounts and time deposit accounts. Fractional reserve banking (our bank run ridden current system) is the unnatural version!
Please tell me when you’ve learned this info and understand it. Now go
@@user-wl2xl5hm7k FDIC insurance was set up to protect against "bank run" fools! Raise the reserves and watch every bank start redlining again!
The guy with the curly hair really makes a good point, explains it well and is clearly a knowledgeable
man on the topic.
@3:13 we bought our house in November 2005 and I had to demand a fixed rate mortgage. one of the companies that I didn't end up using said they had only done two fixed rates that entire year ....
So you're telling me that banks that do ninja loans are actually a ponzi scheme? Or are just all banks pretty much a ponzi scheme? 😅
The Global Financial System is a full fledged Ponzi Scam led by The FED.
By the definition of a ponzi scheme, yes banks are definitely ponzi schemes. That's not even debatable, in fact I think even an economist would agree with you as my professor did with me. Banks often have liabilities HIGHLY in excess of the money they actually have and it's no secret that this fact means absolutely no bank is gonna be able to pay everyone what they're owed.
The difference here is that banks are really poor ponzi schemes, offering little or no increase in value of your funds given to them. Whereas a real ponzi scheme promises some big payout or valuable resource. This promise of a payout means ponzi schemes are going to crash and burn much faster than even the worst run bank in the world. Still at the end of the day a bank is still always going to eventually crash and burn, all it takes is too much money going out and not enough going in.
All banks. The entire economy is an MLM.
Canadian banks typically don't fail as the last bank failure was a very small bank in 1996. Perhaps we should structure more like they do, which would likely lower profits for the banks so that will never happen.
Money for canadian banks come from chinese foreign investors, while the US see them as a thread.
Banks are accustomed to keeping the profits & outsourcing the losses, they can't lose!
How is there no coverage on whats going on with the deals of BRICS.
“Everyone should be able to get their money whenever they need it” but then “no bank can pay out all their depositors at the same time” make it make sense
The fed rejected bank charters for applicants that wanted to be fully reserved. This is all part of the design.
the fdic should be a percentage and the premium paid by the bank should be off that. the bigger the bank the more insurance they need. then it wont matter how much you have in a bank account youd be covered up to a certain percent.
I thought anyone who banked would know the basic facts outlined here. I just can't comprehend how those who stand to benefit most greatly from their associations with these institutions are allowed to take the degrees of risk and that there be no consequence. It is astounding that these individuals in such coveted and well remunerated positions at the banks (and also other related agencies) feel that the value they add justifies this.
SVB failed because 1) the bank made a bad bet that interest rate wouldn't jump by buying long-term bonds, and 2) its clients are mostly in one industry, tech.
The former means if the bank needs cash at any moment before maturity, it needs to sell the bonds at a loss due to the hikes in interest rates .
The latter means the bank will see synchronized demand for liquidity if tech industry underperforms and needs cash for operations.
And then when SVB started to sell its bonds for the cash it needed, venture capitalists over-reacted by recommending cash withdrawal and caused a bank run.
That’s well put
Credit is the life blood because you can't actually afford to buy any wealth products without finance
Because they gamble with our money
Where is this 1:00?
What a lovely stable system.
Worldwide, since a few months ago, most countries are de-dollarizing to flee away from the US dollar, and buying up other potential major currencies.
In time to come, the US dollar would be so cheap that it could be used to make big paper kites. The Yankees can then go fly their kites! 😂
The government created a lot of this problem. Banks are not required to keep much cash in reserve any more.
In this video, the speaker discusses why US banks keep failing, despite the government's efforts to regulate them. He argues that the problem lies in the banks' risky lending practices and lack of transparency, as well as their tendency to prioritize short-term profits over long-term stability.
The speaker points out that many banks have engaged in subprime lending, which involves extending credit to high-risk borrowers who may not be able to repay their loans. This has led to a high rate of default, which has in turn contributed to the failure of many banks.
The lack of transparency in the banking industry is also a major problem, according to the speaker. He argues that many banks are not forthcoming about the risks they are taking, which makes it difficult for regulators to effectively oversee their activities.
Finally, the speaker notes that many banks are focused on maximizing short-term profits, which can lead them to take on excessive risk. He suggests that this short-term focus can be addressed by incentivizing banks to prioritize long-term stability and by increasing transparency in the banking industry.
In terms of advice, it is important for regulators to closely monitor the lending practices of banks and to enforce stricter regulations on high-risk lending. Additionally, it is important for banks to prioritize transparency and to be upfront about the risks they are taking. Finally, it is essential to incentivize banks to prioritize long-term stability over short-term profits.
A teaser rate on a 30-year loan is as problematic as a marriage where you plan to love each other more upfront but will love less and less as it goes forward. Basically, a deal that is doomed for failure, and coincidentally often one side of the contract is disproportionately rewarded for this failure in both examples.
Greed & Corruption
Josh I feel like you're always reading my mind. I'm literally making a personal shift right now and this video is RIGHT ON TIME. Dope content as always man! *VRITKN300*.
Cause we keep bailing them out. We push “free market” ideas but only for the consumer.
You don't need to waste 12 minutes of your life.
The answer is corruption and greed.
Rising interest rates. These banks survived on low interest rates and took big risks.
I think we need to ask a different question in order to help solve this problem. It’s not over regulation or deregulation that’s going to resolve the current issue at hand.
Maybe because none of the money the banks have is owned just borrowed therefore banks are also in debt.
It's Karma. 30-year loans! You put anyone on the hook for 30 years you deserve all hell has to offer. 🙏
Unfortunately banks like svb offer sweatheart deals like free mortgages on houses in the millions of dollars to company owners who put their payroll through their bank. So the deposit insurance cant cover it and business owners like the personal perks
Why don't Canadian banks fail? ZERO failed in the 2007-2008 financial crisis. Are Canadian bankers more moral, more honest and more wise? Shouldn't retail banking be a very boring business?
The usa should study The brazilian regulations, because even during big crises almost all of the banks in Brazil survived. In fact, at the moment not even 1 Brazilian bank failed, because of this crises.
But for people who have a mortgage or a loan, if bank collapsed should they need to return money (and where)? Or not? In other words someone get a loan, working really hard and paying it off by sweat and blood, and others "ninja loaners" get it and when bank is collapsed literally steal that money? Or how does it work?
The incoming banking collapse will not affect your loans as the fed will simply take it over placing it within the cbdc, meaning you will pay the gov instead of the bank, well the banks will still exist, they just wont own the loan anymore, the gov will. The government will step in and make things whole, the only issue being....the gov now has total control of your money.
Bank fails govt pays other bank to take it over , you have loan still owe it
interesting, loan or mortgage you will still should pay off, but your deposit over 250k could disappear without ends
"It's the heart of US economy." - It has an effect on evwryone, not just those who use it.
"It is [bank failure] cyclical." - It has well known issues.
That doesn't sound like a stable economic system.
Credit suisse had more than 3 billion swiss francs losses in a period of about 10 years, but paid 32 billion bonuses to top managers during this time frame
This sounds so crazy
What causes a bank to fail? People panicking for no reason
In 2010 average house was 250 000$ today 350 000. FDIC should increase the amount if they want to stop the panic
US Banks might be failing but the CEOs and politicians keep getting paid
The credit risk starts with loaning out $10 for every $1 the bank actually has in deposited funds and never having to take the fall on bad schemes they make.
And that's why I prefer credit unions. They aren't as reckless with my money and I've never had a dollar disappear. I can't even remember the last time I heard of a CU being in financial trouble....
Legend says, that guy still hasn’t blinked 😂
I love your openness, humbleness, and honesty so much! Most people do not talk about the deeper stuff as you've done in the video. It is true that most people have to try so many different things before finding something that works for them. No one ever talks about this but this video resonated deeply with me. I enjoyed your story very much. Also, your plants are beautiful! Looks like you're doing a great job taking care of them. *VRITKN300*.
BECAUSE THE PRINT THE MONEY LIKE A THIN AIR!!!!
Because they can afford to since they know big brother government is just going to bail them out in the end 🤷♂️
The walkthrough from the Brookings Institute rep was great, but next time it may be ok to edit out the headshots. Dude looks like he's single-handedly responsible for the adderall shortage
Misleading somewhat, needs to touch on the fractional reserve system! most of the money banks lend, they don't have, they just create out of your promise to pay.
Banks are allowed to loan MORE than they have .. hmmm
Deregulation not only cause bank collapse. Deregulation also cause aircraft disaster like Boeing 737 MAX 8 crashes. The recent financial scams like FTX, Theranos and Nikola are also by-products of deregulation.
Tech bros touched the banking system and now it's falling apart.
The title should of been: "Reason why banks fail; greedy CEO's"
They aren't addressing the root of their problems
Well if you received free labour,, for hundreds of years,, and you owe trillions ,,,to same people that built your rail road,, that you said at that were savage,,
No bank can survive a bank run, but it's also never happened that all banks have a loss on increased interest rates? Because they all have loans with a fixed interest rate close to zero and long-term bonds with a close to zero interest rate?
I've withdrawn about 33% of my assets and converted to gold/silver coins. Not gonna leave all my eggs in one basket. Even if you're FDIC insured, who's to say how long you could be without your funds? You'll get it but could be over a month.
Deregulation does usually work just not in this case
Get on a plane to Australia and see how they regulate banks down there. They have four big banks and despite the toughest rules and severes penalties for reckless lending, they are second only to mining companies for generating the biggest profits. They must have a good system.
It’s simple really , banks are in the interest of making money. They will attempt to do so no matter the situation. Think of banks like your pet Dog. What happens when you give it unlimited food? Do you think it’s going to care that it gained 30 pounds in a month? It’s going to keep making reckless choices until it becomes unmovable. Then you have to physically pick them back up and put them on a weight loss plan.
Banks do not loan depositor's money, they create the money placed into the borrower's account. Why can't they create the money required to cover their liquidity problems?
The security officer of Silicon Valley Bank was the same guy who was the security officer of Lehman Brothers. See, this is what happens when you bail out criminals, they will absolutely, 100% repeat their mistakes again. Golden parachutes are a danger to the society.
Banks do spend too much money on sending us paperwork