Silicon Valley Bank- What Happened?

[@Tiger5913]

Thank you very much, Mr. Clifford! I'm a student majoring in Economics. This collapse fascinated me as an Economics student, but terrified me as a consumer. As for another video, can you please talk about some interesting or lesser known jobs that people can get with Econ degrees? I really enjoy learning how economics can be applied to real life. Thanks again for your informative video!

[@thepracticalinvestor2386]

Great suggestion!

[@Businessblend]

Hello! Hopefully he answers this, but lots of the jobs an undergrad Econ degree get you have analyst in the name. Treasury analyst, equity analyst, business analyst, financial analyst etc… banks, insurance companies, investment firms have lots of these jobs

[@amishjha]

Hey Jacob, just wanted to thank for all of your work, I followed your videos throughout my MBA classes and secured 2nd highest in my batch coming from a non econ background that was huge feat in itself! the PPC curve or the Philips curve is still fresh in my mind as you taught them so well, specially the summary videos really helped me before exam, I wish I could have bought your course package back then in 2017 but it was not available to India customers. I still advice to parents to go follow your channel, I think you have a very crafted way of explaining stuff and its a gift which not a lot of people have.. more power to you, please don't stop , I like your energy and excitement with which you bring in every videos I know not all heroes wear capes you are one of them.

[@coscomosco4388]

Truly awesome, while I saw that many creators regarding SVB we creating a 15-20 minutes long videos. You explained it in mere 2:42 minutes. That too explaining the fundamental reason behind it. Awesome

[@v9318]

Hi Mr. Clifford, I watched your videos while taking my economics class (micro & macro) at community college and it really helped me out. I appreciate all the content you put out there and I am always interested in watching your videos. Thank you so much!

[@archiex1576]

Really good explanation in a short amout of time. Great job

[@nogierueghobamien4009]

Thank you Sir! Been watching since you made your pitch for the Crash courses. Great explanations as always!!

[@jeksty9118]

Thank you for keeping us in touch and clearly explaining real time examples related to economics! Just is yesterday class my professor mentioned this case and tried to describe it. However, fortunately even if I didn't understand him that clear, you're already uploaded your explanation to this case!

[@Beastmode73060]

He doesn't have $1 invested in svb. You might want to do more research.

[@aboveaero]

@@Beastmode73060 Pretty most people don’t have SVB bonds. Do you?

[@ashishrauniyar9904]

You know that you’re one of the best economics teachers!

[@greekbarrios]

The failure of Silicon Valley Bank has torn into global markets, with investors ripping up their forecasts for further rises in interest rates and dumping bank stocks around the world. I'm at a crossroads deciding if to liquidate my dipping 200k stocck portfolio, what’s the best way to take advantage of this bear market?

[@Suntz_u]

The SVB situation is a reminder that Fed hikes are having an effect, even if the economy has held up so far,” It’s precisely at times like these that investors need to be on guard against the next certainty. You don’t have to act on every forecast, hence i will suggest you get yourself a financial-advisor.

[@CynthiaByrd648]

@@Suntz_u I agree, having a brokerage advisor for inveesting is genius! Amidst the financial crisis in 2008, I was really having inveesting nightmare prior touching base with a advisor. In a nutshell, i've accrued over $850k with the help of my advisor from an initial $120k investment

[@greekbarrios]

I’ve actually been looking into advisors lately, the news I’ve been seeing in the market hasn’t been so encouraging. who’s the person guiding you?

[@CynthiaByrd648]

@@greekbarrios Credits to Jill Marie Carroll, one of the best portfolio manager;s out there. she;s well known, you should look her up.

[@greekbarrios]

@@CynthiaByrd648 I just looked up Jill Marie Carroll online and researched her accreditation. She seem very proficient, I wrote her detailing my Fin-market goals and scheduled a call. THANKS!

[@danialimanazlansuhaimi9358]

Nice explanation!! Ur video is the reason why I get high marks in economics

[@Frenchylikeshikes]

A bank I had never ever heard off in my life before.

[@416capone]

This was great. Being in the banking industry (on the east coast) this was a nice spark notes version (for those old enough to remember that).

[@8329Julie]

Welcome back Mr Clifford!

[@chrisramirez3058]

That’s very easily explained! Great vid

[@dabossbabie3605]

Thanks for the info Mr. Clifford! I was wondering actually, could you maybe talk about the state about how economics is taught and how you approach it, and the contrast between the two (unless you agree with how it's taught, then maybe explain why it's effective?) I find it fascinating to learn how people learn things and how people teach things, and it may be helpful for teachers out there as well!

[@olisaezekiel9646]

You kept it short, interesting & sweet. Thanks

[@Charlie-pt1ks]

Very fast and easy to follow... great video! Thanks!

[@alwayzlearning4355]

Thank you for explaining that soooo clearly! 👍

[@Soosss]

I really like this content where you cover real world issues 👍

[@nevadashannahan79]

So glad to find your videos again!

[@wldct285]

please make more video related to trending economic news! so interesting

[@DeclanCC]

We need more bank runs, show the cracks in the fractional reserve system and force us to improve it without inflationary bail outs.

[@chhayakankariya2748]

Music name in background? Please an nice explained ty

[@ericencina209]

The bank does not loan their depositors money, and also not their bank deposits, they create money out of thin air and lend it to the borrowers to be repaid at interest. SVB collapse is probably something sinister about banking gimmicks in the future.

[@robertoinvests]

I heard they invested in venture start ups you’re saying bond market, what percentage of each

[@wambgu1]

Thanks Mr. Clifford fot that wonderful explanation. Now I understand what happened to SVB

[@SkyBlueMt18]

Thank you for another awesome informative video that is relevant with current world events! With interest rates constantly being raised and consumers paying higher interest on credit cards, seems to me that many people already maxed out are probably heading towards bankruptcy but is there a better way of recovering? This could be an interesting topic to cover in a video.

[@rabih7969]

we want to learn about Credit Swiss, what happened there? thank you Mr. Clifford!

[@4jones82]

I heard some congressman warned people before hand. Maybe something to do with what Mike Gill presented about SVB.... Brendan O'Connell... Pandora Papers

[@aymanraouf1820]

Hang on, there are two types of bonds, Held to Maturity bonds and short term bonds. Which one did SVB bank buy? That had caused its price to reduce?

[@suhainsomasiri4429]

This is what you called fractional reserve banking. Banks only keep 10% of your money and spend it on investments. The interest rates are given to bank depositers from the profits they made from bonds, stocks, loans and realestate investment.

[@hatrang5143]

Excellent explanation, thank you so much 😎

[@anniezhang347]

what do you mean at 1:31 when you say the bank sells the bonds they just bought? you can sell other corporations' bonds?

[@samp123samp]

yes

[@christianhardy6653]

Mr. Clifford, any idea how big a loan it would take for a bank to go to the fed? I'm talking about the discount rate. If a customer has all their paperwork in order for a massive loan and it is approved, what kinds of amounts would it take? I understand it would be a different situation from a local town bank to Bank of America. How would it play out in a commercial bank? For example, if a company needs a 6 million dollar machine or 100 million for expansion project.

[@NosaIgbinosa]

Great video 👍

[@myuniversityaccount]

Hello, Can you explain how these bonds lost value? Is it because the bonds' rates were fixed? Thanks!

[@justiceonu5930]

Hey y not make a video abt shares and debentures. its a little confusing to me

[@kaayachatterjee3831]

i really hope you could discuss the evergrande crisis in details... thank you so much for your videos.

[@CamiloSanchez1979]

Please interview Bernanke

[@ashwin3793]

Hey jacob , can you make a video on Modern Monetary Theory and some political economic content in the coming days

[@makedredd299]

Never trust a bank man! - Sam Bankman-Fried

[@satorugojo7869]

So what caused the panic..?

[@pablosesaid5830]

1920s called they said “it do be like that sometimes “

[@davidclifford6125]

Great video! (It's Silicon Valley not Silicone Valley btw).

[@JacobAClifford]

Yeah, I messed that up. That's ok.

[@mr.gamewatch7547]

What about the large amount of MBS that SVB has?

[@royalty2924Love]

Whats the name of that film he used in the video?

[@profmoussavi]

One of the movies was "It's a wonderful life", it involves bank failure, good economics lesson.

[@leopard6554]

Yes. It's me again...!!!🤣🤣🤣 Thank you Mr.Clifford...!!! 😊

[@samsunglg6671]

And that's why we write checks, process transfers, and direct deposits.

[@ericw942]

The "toxic loan" theory of 2008 is half true. It was mostly small investors over leveraged rather than people not being able to afford their mortgage. The latter furthered the housing crash but small investors being over leveraged was the spark. It's happening again, btw. Cheers!

[@n.g5188]

Plz explain how interest rate rise led devaluation of tbonds

[@heimkhemrasuy4688]

Thank you so much!

[@sriharshanallan1205]

Could we relive the 2008 Crisis? How comparable are the intrinsics of Lehmann vs SVB??

[@dimostychalas9820]

Dear Mr.Clifford. I am a student sudying econ, and I watch your videos(I also hav the UPR), and they are amazing, incredibly helpful. Could please makesome videos covering maybe some intermediate micro and macro topics, for us the college majors? Thank you in advance, love you, wish you the best!!!!!!!!!

[@michaelgarrow3239]

Um,,, what about fractional reserves?

[@evie3464]

Mr Clifford please make ib syllabus videos, I mean it won't be much hard for a professional like you. Pleeeeeeeeease

[@goodguysinc.]

Every bank is in this situation right now

[@aarontaylor6464]

Thanks for a quick, down a dirty explanation.

[@EmeraldSanctuaryTheraphi]

Thanks

[@XAGR-hn3qt]

So this has nothing to do with a recession? I’m ignorant in all this so I have no idea what’s going on .

[@tnminhkhoi1398]

Thanks sir

[@raya472]

Question: what caused people to take out their money at a higher rate in the first place?

[@vaibhavkeshari9620]

A couple things 1) press release by SVB saying they were selling stock to raise capital (implies that deposits are not well covered by bank assets, which is true- their bonds fell in value due to high rates) 2) decreasing venture-backed company valuations in our high-rate environment means that venture-backed companies who park their savings at SVB need their money back more quickly than before

[@ffmasters9402.0]

Thank you very much, now I understand why CVB failed 😢

[@susanrathbun6439]

It’s not “cone” it’s “con”.

[@marksheppard6640]

Silicon ≠ “silicone”

[@Freshhiphopnews]

Thank god the majority of my money is in land assets

[@ConflictedSwitch]

Hey Joe, what's *my* money doin' at *your* house?

[@lcruz916]

Credit Suisse now! Please, make a video

[@jackfullerton5762]

It's silicon not silicone. Silicon reflects the compound in a computer not those gel inserts in a woman's upper thoracic area. And still, what is a woman?

[@kristinaER27]

It isn't pronounced "sili-cone"

[@xblade6193]

Hello @jacobclifford sir, please help us in AS LEVEL by teaching how to write 8 marks 12 marks questions exam is near please

[@sir_topcat]

Silicone Valley Bank 😔

[@levi_michael]

You’re awesome!!

[@danyhawa8399]

with All due respect dude; you are contradicting your own input. you explained in previous videos/sessions about the Fractional Reserve / Money Multiplier. therefore, the banks don't have the money not because they used it elsewhere instead because 97% of those numbers are virtual money not printed as bank notes. on the other hand, the SVB is a high-tech lender, in other words, deposits are electronic transactions. that being said, why people are demanding Bank Notes withdrawal ???? ACDC kindly say things as they are and as we knew you i.e. Transparent. we don't need another illusionist on the block.

[@4jones82]

Maybe something to do with what Mike Gill presented about SVB and New Hampshire....

[@cyrusfirst7531]

Silicone isn’t Silicon

[@Beastmode73060]

The government told the people not to panic, while they stepped in with emergency measures and seized money from another bank. This of course while a ceo is doing interviews on her brilliant move of PULLING ALL OF HER MONEY hours before the collapse. But again don't panic. Lmao

[@aboveaero]

You failed to mention why the SVB chose to buy these bonds rather than build their assets off of long-term loan. SVB mainly conducts business with the tech sector which has little need for loans since a lot of their money comes from investors and IPOs among other things. Not to mention, the entire industry is crumbling right now.

[@mickmickymick6927]

Those silly cones.

[@Getbent444]

and that’s why I buy gold and don’t use a bank.

[@jakesantos4579]

ako pa rin ba?

[@s1mplet0n94]

You sound like Mark Cuban

[@bobsmithy3103]

shits hilarious. everyone let's withdraw all our money

[@onuhjoseph3687]

Hello please

[@lisamoore3198]

When it comes to investing, we want our money to grow with the highest rate of return and the lowest risk possible. Mean while there are no shortcuts of getting rich, but there are smart ways to go about it. I’m grateful to God for leading me to the right platform who’s method are top notch and profitable.

[@Bruhwthecomb]

Silicone lol

[@blairtoland6178]

Woke amateur hour👍👍

[@homeyman1917]

Noob here, why do rising interest rates decrease the value of bonds? Explain like I’m 5 pls 😂

[@vitali6137]

Buy Bitcoin ! Just kidding .

[@thomasucc]

Socialism

[@Afromontana14]

Silicon Valley Bank used to lend out money in short durations. However, in 2021, they shifted to long-term securities such as treasuries for more yield, and they did not protect their liabilities with short-term investments for quick liquidations. They were insolvent for months because they could not liquidate their assets without a large loss. Despite the crypto pull back I think digital currency is best, I’d suggest you give a trial to bonaveststockfx and see for yourself.

[@badger_actual8249]

Hahahah let the end begine!