The failure of Silicon Valley Bank worries not only their clients, but also every investor in the U.S.
On one hand, it’s the biggest bank collapse since 2008.
On the other hand, we were lucky it didn’t cause a chain-reaction.
And the Federal Reserve follows a plan—albeit, a risky plan—to reduce the damage, and save SVB’s clients.
Furthermore, understanding how the current situation in the banking sector came to be can help us make better decisions on the stock market.
In today’s episode, you’ll discover why your bank may share SVB's fate, and why the current crisis may even be an opportunity to stabilize the stock market.
Show highlights include:
- The truth about what banks do with your money (and how they risk loosing it all) (4:19)
- What went wrong with Silicon Valley Bank (and why many other banks may share their fate) (6:27)
- Why the Federal Reserve may not save people who lose all their money (even if they can) (11:27)
- The roundabout, yet effective way the Federal Reserve wants to regulate the banking sector and stabilize the stock market (13:40)
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