US Banking Crisis: The Truth Behind The Disaster

I love how every level of management failed and they still felt like they deserved a bonus.

The current system is completely unsustainable. The only reason it continues 'as if' is lending and debt. Lending for healthcare, for homes, for education, and plain old credit cards. trouble is, when the bottom falls out, the lenders get bailed out and consolidated, and everyone else loses their shirt.

When our banking system collapsed here in Iceland back in 2008, we threw those responsible in jail. Rich bankers shouldn't get bailed out while ordinary people lose their homes and life savings.

If a regular employee makes a mistake and the company looses a 100k, he guest fired or thrown in jail. If an executive makes a "mistake" that makes millions of people collectively lose hundreds of billions, he gets to happily exit with a fat check. Yeah, justice is well leveled up in this country.

I work in the tech sector. You wouldn’t believe the amount of cool tech companies that live for years with negative cash flows, while overpaying their employees and management. It’s going to be tough in the upcoming years, but this industry needs to learn that companies can’t survive on the promise of future returns alone.

"Greg was promptly yeeted from the board"

Spoken in the calm, professional manner that Dagogo is known for made me laugh out loud 😂

I'm a risk manager. In every organization i've consulted or worked with, risk management is treated as a check list. NO ONE in management cares about risk management. It's considered a exclusively fiduciary obligation. When you present existential risks and demand contingency plans, typically management tells you there's management reserve or other management funds to address the issue. I'm not privy to what happened at SVB but I'm confident that Moral Hazard allowed for risky decisions to be made and ignoring contingency and mitigative actions. In other words, they knew that the FDIC and its funds would rescue them.

I always go back to your 2008 recession video every few months, and it's crazy how similar some of these events are. They say history repeats itself, but its only been around 15 years.. the taste of that recession is still there for a lot of people.

SVB’s real problem was the homogeneity of their depositors. A liquidity crunch in the startup scene meant that pretty much all of their cash was gone. Had they had a more diversified pool of depositors, this wouldn’t have stung as badly. And banks should not be bailed out. They should take responsibility for terrible decision-making.

I feel like crises have become a part of our everyday life now.
- Wake up, make breakfast, send kids to school
- Check what crisis we have today
- Do the laundry...

Although the economy has so far held up, the SVB scenario serves as a warning that Fed rate hikes are still having an impact. At times like this, investors must be vigilant about the next inevitability. You don't have to act on every forecast, therefore I'll advise you to hire a financial counselor. This has been my fallback position for a while.

Making money is an action. Keeping money is a behaviour, but "Growing money is wisdom" I heard this from someone 💯

Whenever I see cold fusion video, I get feeling that rich people are stupid at the same time I am poor.

Most clear and concise information to date. I'm a layman and found this very informative. Really curious as to how the interest hikes affected all of this and why they had to do so many hikes to begin with.

This may not be the start of a banking crisis, but it could be one of the first signs of a “disruptor crisis”. Many sectors are faced with new companies with “disruptive” business models. As we have seen with crypto, these are often run by inexperienced, incompetent, overconfident, reckless or criminal individuals who aren’t concerned with identifying or managing risk, or running their businesses in a conventional manner. They represent a huge threat to economic stability.

I don't follow financial news at all, it's absolutely not my wheel house. I just wanted to say thank you for making a really great video that helped me understand everything that happened without using a bunch of terms and phrases that go over my head. Expertly done!

You know when ColdFusion uploads videos on modern issues, it's gonna be good🙏🏽

Great video. I watch several youtube videos on how to trade in the market but haven't made any headstart because they are either talking some gibberish or sharing their story of how they made it and I do not want to make mistakes by taking risks in my own hands

I used to work as a higher up in Deutsche Bank. One of the problems with SVB is that most of their clients are classified as high risk. In the normal banking world, most high risk businesses are offset by a large pool of low risk businesses such as doctor's offices, markets, cafes, etc. Often times the dollar amount of low risk to high risk is $10 to $1 and high risk businesses are charged with a premium in order to operate. SVB skipped over this and ran mostly high risk businesses. Their answer to combat the high risk was "more funding". To be honest, it's an amazement they've been able to stay afloat for so long given their businesses practices. The best thing they could have done is not take shortcuts and just do banking the way it should be done. The entire structure of this bank is backwards, like an upside down pyramid.

Thank you for this comprehensive report. This is very relevant, updated, and a detailed explanation of today's hot financial news. I need this for my class material. Great work!