What Silicon Valley Bank’s Implosion Means for You

[@RBReich]

I’m trying to figure out why the Fed, which not only sets interest rates but also regulates banks, didn’t see this coming. If you raise interest rates, bond prices fall, duh. So any bank that holds its money in bonds will suffer losses if at the same time big depositors (like Silicon Valley startups) need to take their money out (in this case because VC funding is drying up). I mean, what are they doing at the Fed?

[@nriqueog]

Obvious that the Fed has no idea what it's doing. Time we give the responsibility of maintaining/regulating this country's financial system back to the Treasury Dept.

[@feirmebeardonn4597]

It's like any other religion...it's all made up to control people through fear.

[@toro_bravo9420]

Amen!

[@lexslate2476]

Fed's operating under old reasoning, that raising rates reduces inflation. Which it does, by reducing demand via making the availability of finding collapse. Bob knows this, I am saying it for the benefit of others. But, as Bob says, overconsumption isn't driving this inflation, this is mostly price gouging in the part of industries that have consolidated in to oligopolies and are taking brutal advantage of their market power.

[@mcsmith732]

How will the Fed raising interest rates stop corporate monopolies from continuing to raise their prices and actually causing inflation. Why is this CNN guy so insistent that raising interest rates are helpful with quelling inflation when that is not going to stop corporate profiteering? What else can the Fed and the rest of government do? Well, since the House is run by the opposition, the Dems in Congress and the Executive Branch and mainstream media "reporters" can come right out and say that this inflation is caused by nothing more than price gouging by American manufacturers.

[@davidparnell1893]

Exactly...BILLIONAIRES and the FED have "created" this inflation, NOT wages increases. Prices have passed wage increases by multiples.

[@Jesse-gqr]

Biden’s tax and spend policy has created inflation.

[@codacreator6162]

That’s for sure. Rent in my area is up 30%+ since 2020. If I got a 30% raise, I’d be okay with it. COL is calculated at around 3.3%. Yeah, that’s not working. $5 for a loaf of bread isn’t supply chain issues, it’s flat-out greed and opportunism.

[@infinitysteppingstone331]

BILLIONAIRES shouldn't fvkn exist. They clearly take the lion's share of social economic prosperity.

[@nk1974]

💯

[@eaglechawks3933]

The Fed and the US GOVERNMENT have created this inflation by unchecked spending and fiscal insanity.

[@YodaMan-420]

incoming "too big to fail" scenario again. we dont have money for healthcare and education and basic income but weve got all the money for the rich people.

[@eddapultstab2078]

And the military.

[@jimloth6091]

Instead of "too big to fail" how about "too stupid to be allowed to continue"?

[@3_pancakes767]

THey DeSERVE thEIR HaRD EARCNED MONEY YOU LAZY NUTCRACK!!!

[@whatsupinspace854]

But if the rich people fail, who will be left to trickle on us?

[@eitkoml]

Yeah, just like what happened in 2008.

[@jwbjpb1338]

It means we need MORE regulation of banks. We need to make the Glass-Stegall Act the LAW again. The failed bank was big on crypto (a ponzi scheme and needs to be illegal).

[@jwbjpb1338]

@@TheBitterSarcasmOfMs.Anthropy Yes, it's a ponzi scheme set up by the top 1% to simply fool the average person into their scheme. Let me know what you are buying with your bitcoins. Oh, the answer? NOTHING. China has outlawed crypto because they know what a scam it is. Crypto is nothing but pretend fancy money with no backing from any government. It's not currency - it's fake and absurd and neeeds to be illegal.

[@Pharoah2]

Youre thinking about silvergate that collapsed the other day and was big in crypto. SVB was big in tech startups in general.

[@carlwide6594]

Regulation makes no difference. We need to decentralise everything away from centralised points of weakness.

[@marvinmartin4692]

Right! We never had this garbage with it intact!!!

[@jwbjpb1338]

@@carlwide6594 The Glass Stegall Act prevented banks from this nonsense. Regulations ensure that banks stay within their lanes instead of the insanity that we have seen in 2008 and now again in 2023.

[@tradekings5433]

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.

[@Natalieneptune469]

Indeed, the recent market downturn serves as evidence that a vast majority of individuals lacked a sufficient understanding of the underlying financial dynamics at play.

[@christinaulibarri4777]

Another bank bail out on the way while the customer pays the price by losing their business, home etc. Thank you Mr. Reich for your work and commentary.

[@MrLoekanle]

Doubt it, US can't try the same trick again expecting different results. The war in Ukraine and trillion dollar defeceit makes it very unlikely

[@janedoe3915]

Stop trying to cause panic to bring on a recession.

[@anthonydelfino6171]

They let it fail, they've just chosen to go beyond the normal quarter million in insured deposits for depositors who had more than that much at the bank. I'm not sure how I feel about it. On one hand, if you have that much money you can afford to leave it in a bank, you should know to diversify where it's held so it's all safe... but on the other hand if making them right prevents runs on other banks and a domino effect of banks collapsing (because literally every bank would collapse if there's a bank run on it) then it's a good thing overall. And perhaps the upper limit of FDIC insurance should be looked at. If I'm not wrong, it's been at $250,000 in deposits insured since the 90s.

[@CH-cd5um]

Corporate profits are at a 70 year high. The supply chain crisis was a controlled event by billion dollar corporations and billionaires both from around the world. Most all middle class wage increases were less than the rate of corporate created inflation. Increasing the interest rate will not slow or stop your families needs, your needs to get to work, or your child's school needs, housing, auto, or medical needs.

[@carlwide6594]

No, it was all done by the Dems. First they disrupted USoil production, then they pribted money for use on absurd things, then they started a war, then they blew up Nordstream. They've been a disaster for the world.

[@anthonydelfino6171]

Nope... but it will certainly push, say, student borrowers who are trying to fight for forgivness....

[@melissaverduin3693]

Robert...thank you for stating FACTS ! You rock💥

[@Chicago48]

This is not good. The average "worker" cannot keep up. There are things that are necessary like utilities, but if you can't keep up with the price rising then you'll end up in BK or homeless.

[@kalijasin]

It's not just inflation. Price gouging is also driving up prices.

[@carlwide6594]

Just a Dem excuse for the utter destruction they've unleashed.

[@chihuahuasrule1175]

We really appreciate the work you do to inform us about economic issues. You are truly a blessing!

[@jdmagicmusic]

he's one of the few REAL good guys!!!

[@jimmason8502]

Reich is brilliant.

[@fred3671]

Agree

[@terenzo50]

Recessions typically don't hurt billionaires.

[@monkeymoonky7900]

benefits them. EVERYTHING IS ON SALE!

[@infinitysteppingstone331]

terenzo50 BILLIONAIRES shouldn't fvkn exist. They clearly take the lion's share of social economic prosperity.

[@toddodell70]

They are excellent buying opportunities as for as those with money go. USSR's collapse made life for ~95% for worse. (+1000% inflation, etc.) However it was great for those with money to buy everything.

[@terenzo50]

@@infinitysteppingstone331 I'm for knocking them all back to the level of multi-millionaire.

[@sandermez3856]

Recession/crash/depression is to the people what revolution and bloody regime change is to the elites...

[@FirewindII]

"...using inflation as an excuse..." YES. Thank you for putting it so cogently and backing it up.

[@CaseyKCRichards]

Robert, please run for presidency. You are far more than qualified. ❤❤❤❤.

[@unaturley3062]

Inflation is not the consumers fault Reich has said that forever but no one hears him.

[@whyputaname]

I hear him..👍👍

[@Jesse-gqr]

Inflation is Biden’s fault. He keeps spending .

[@infinitysteppingstone331]

Oh they hear him. They choose to ignore him so they continue their exploits.

[@brianadams3189]

It's hard to hear what someone is saying when you're too busy swimming around in all your gold coins like Scrooge McDuck. Gold makes a lot of clinking noises, give the billionaires a break!

[@JoseLopez-tk4tq]

Oh, I hear him loud and clear! He is a voice of reason; his channel doesn't have the deep pockets of monopolies/billionaires to send his message to a wider audience like mainstream media outlets.

[@alexross5714]

Jerome Powell is out of his mind, and Robert Reich is 100% right, although he's being much too generous in this interview. Inflation has been easing ON ITS OWN, not because of Powell's rate hikes but in spite of them. Our inflation has been caused by (1) supply chain issues, (2) corporate consolidation, which reduces competition, and (3) corporate price gouging. Raising interest rates is an effective tool for cutting inflation when that inflation is demand-driven. But this inflation is not demand-driven; it's supply-driven, so to speak, in addition to the other factors I mentioned above. So, what should Powell do? Exactly nothing. Start by not raising rates, and then gradually begin to lower them. As I said earlier, inflation is easing on its own, and there's nothing Powell can do about it but refrain from driving us into a recession. But, more importantly, the Biden administration needs to get serious about breaking up monopolies and he also needs to pass a windfall profits tax. Even the threat of a windfall profits tax on its own would go a long way towards speeding up the recovery. If you don't believe me about the corporate price gouging, just listen everything that's been coming out about CEOs gloating openly at their board meetings about how inflation has given them cover to profiteer.

[@idmhead0160]

There aren't any supply chain issues. Why even list that as #1? It is false. Listen to Richard Wolff

[@idmhead0160]

Inflation is not easing on its own. It is still going up. Go to the grocery store and you will see what I'm talking about. Interest rates should go up. They are too low and have been. Put them back to where they were 20 years ago. I was making 5% on CDs back then and that's what it's getting to be now. The housing market is out of control because borrowing is too cheap.

[@idmhead0160]

I agree with what you said about the windfall profits tax though. There should be a wage/price freeze, or, should have been one a long time ago. Nixon did that back in the 70s and it worked. Listen to what Richard Wolff has to say about it

[@alexross5714]

@@idmhead0160 I will. Any particular video by Wolff? Did Wolff really advocate a wage/price freeze? That seems strange to me cuz wage growth is lagging behind inflation, so freezing wages would harm workers without meaningfully reducing inflation, IMHO.

[@idmhead0160]

@@alexross5714 Lookup Richard Wolff Economic Update on KZbin. You will see a lot of his videos. If you like Robert Reich, I think you will like Wolff a lot. He wasn't so much promoting the idea of freezing wages, more like stating what Nixon did and stating that there are more ways to deal with inflation than raise interest rates. Wolff is all about worker co-ops. So, freezing worker wages isn't something he would push for. Wolff's show is called Democracy At Work. The guy is amazingly good.

[@charlesbaker5001]

One of my favorite commentators, Robert Reich.

[@oleeb]

When the next banking collapse happens, and it will happen, we should nationalize every bank that gets bailed out and all their executives responsible for the collapse need to go to jail.

[@mcsmith732]

We The People will just get another admonishment about how we need to "look forward, not backward."

[@renatocorvaro6924]

Keep telling it like it is dude. You're doing great work.

[@kimberlychodur3508]

And every time these banks and companies get bailed out, all we hear about is how the CEO got a huge bonus and all the stock buybacks they did. Not one cent goes to the workers or improvements within the company. Kind of sounds like they fail on purpose at our expense and their gain.

[@JoseLopez-tk4tq]

It's deja vu time again!

[@suicune2001]

Yep!

[@zubizuva]

Just send the bank a $600 check, they'll be fine

[@brianadams3189]

Do we still have to put PAB45's signature on it?

[@suicune2001]

LOL!

[@olddoug8945]

THATS the problem with "too big to fail". It costs US. TIME TO DO SOME BUSTING.

[@bruxi78230]

This is not a case of too big to fail, not sure what you're talking about.

[@olddoug8945]

@@bruxi78230 too big to fail means that our tax money will make sure they survive. our tax money will BAIL THEM OUT. a case of communism for the wealthy.

[@bruxi78230]

@@olddoug8945 ----- Calling the 19th largest bank "too big" is silly talk. They have failed and nobody is gonna bail them out. It's not like Silicon Valley is a top 5 bank. They are in receivership. Maybe another bank takes them over but more likely their assets will be sold off.

[@olddoug8945]

@@bruxi78230 your ignorance is showing. our tax money bailed these bastards out in 2008.

[@JoseLopez-tk4tq]

I believe it the reference was to Bears Sterns and Lehman Brothers. Oh how soon we forget!

[@georgeberg2106]

People make bad investments every day, bankers are not immune. If no one controls CEO greed 2008- 2009 will happen over and over again.

[@JoseLopez-tk4tq]

Those who forget history are prone to repeat it! Get ready for more corporate bailouts while the taxpayers get left holding the bag. Bonus - no CEO is going to jail!

[@santim2341]

Robert is the only expert opinion that makes total sense, he's exactly right about corporate greed 💵💵💵

[@laurawells3935]

I suggest the Fed leave it alone. Let these corporations continue to beg for employees. When they don’t find them, maybe they’ll sweeten the pot.

[@HotelMari0Maker]

Thanks Robert I recently found your channel and subbed because I love how articulate you are!

[@carolmiller5713]

This is what I worried was going on. I don't see any workers having more income. In fact credit card debt has skyrocketed.

[@JoseLopez-tk4tq]

And you know who will reap the rewards of all this turmoil and consumer debt!

[@johnchessant3012]

When a bank fails, but all the deposits are insured by the FDIC up to 250k, it means the taxpayers are bailing them out, right? Hope there will be consequences for the bank executives, but I'm not holding my breath.

[@brandonking1737]

No, all banks pay into the FDIC for their coverage, so no taxpayer money is used to pay out

[@ericepperson8409]

The main purpose of the FDIC is not to just pay out when a bank fails. It's mission is to arrange for other healthy banks to take on the assets (read loans) of the failing bank. Banks buy and sell debts like this every day. It's like how when you buy a house, or have a student loan, there's a good chance your loan will get transferred to another servicer at some point. The new holder of the loan will pay a certain percentage to the old lender and make money off your continued payments. SBV's loans don't just disappear and the debtors stop making payments. The FDIC will basically sell those off and use the funds for distribution to depositors.

[@darnellcapriccioso]

With all this scary news making the headlines, is this really a good time to buy stocks? I know everyone says the market is ripe enough for buying but will stocks tank further this year? How long until a full stock recovery?

[@tatianastarcic]

Working with a reputable investing coach is now the greatest market approach. Since a while ago, I've been in contact with a coach, mostly because I don't have the breadth of knowledge or mental fortitude to handle these recurrent market conditions. I made almost $700k during this downturn, demonstrating that the market is more complex than most people realize.

[@maiadazz]

@@tatianastarcic 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 yo help?

[@tatianastarcic]

@@maiadazz It was run by Melissa Scott Glazner,, who I learned about and got in touch with thanks to a CNBC interview. Since then, it has served as the point of entry and departure for the games we have emphasized. A search on the internet can be done if tracking is necessary.

[@richardhudson1243]

@@tatianastarcic Thank you for this Pointer. It was easy to find her handler, She seems very proficient and flexible. I booked a call session with her.

[@Trackrace29582]

Depends. How much are you buying? I like to buy when it’s low so when it goes up I make a good profit

[@jesuschristpose896]

Let them fail, they will not stop doing what they are doing if they keep getting bailed out

[@bruxi78230]

The Silicon Valley Bank is not being bailed out. Depositers are insured for up to 250k like any bank in the US. But that bank and all banks have been paying insurance for that coverage.

[@whyputaname]

Sooo true.. I wonder how much the CEO of the that bank is going to walk away with..

[@jesuschristpose896]

@@whyputaname also they will only pay themselves big bonuses like what happened at Wallstreet, they go bankrupt because they want those huge bonuses. It needs to stop now.

[@anthonydelfino6171]

The extra money they're looking at paying out isn't to save the bank. They're letting it fall. What they're looking at doing is taking care of depositors with more than $250,000 in assets in the bank. Personally, I'm not sure if I agree with the decision or not. On one hand, if you have more than that in the bank, you know the risk you're taking in leaving it there. But on the other hand, if it prevents a run on other banks as investors start to pull large deposits, then that's overall a good thing.

[@jesuschristpose896]

@@anthonydelfino6171 and that's great looking out for the innocent, but the Wallstreet bailout those assholes payed themselves huge bonuses and they should have been prosecuted and jailed for that, the investors did not gain by the bailout and I suppose you can say they didn't lose either, but the stocks did drop so maybe they did.

[@thevision4734]

Corporations are still borrowing at 0.10% to buy merchandise including real estate

[@mikeseigle5560]

No bailouts for Billionaires. We need some Occupy Wall Street.

[@ronkirk5099]

The GQP would have us believe we need LESS regulation of corporations and the financial sector so they are free to do whatever they want regardless of the consequences for everyone else. This is the so-called unrestrained capitalism they think is so efficient even if greed and incompetence causes it to run amuck. Most Americans want a well regulated capitalism that helps to protect them from the excesses of greedy individuals who run it.

[@Other3.5]

Let's see... We track prices, wages, and jobs. We don't track profits. So when inflation goes up, we look at wages and jobs. Guess what we don't think of? Profits. Price gouging is a huge factor in current inflation, but the Fed can't do anything about prices. But here's the thing - we have 2 tools in our tool kit: Monetary policy (the Fed) and Fiscal Policy So the Fed hammering away at interest rates - driving down wages (not the cause of inflation now) and costing jobs - won't solve the problem. So let's pull out our Fiscal policy tool. Tax (as a deterrent) the hiding-behind-inflation price gouging-driven outrageous corporate profits that are driving inflation. It is mind-boggling that we have all been so conditioned to believe we only have monetary policy available to us, that even the newscaster doesn't think of Fiscal policy. He can only think of what the Fed can do.

[@bullettube9863]

Any bank that has 90% of it's assets in new, untried technology is heading for trouble. When nine out of ten start-ups go bankrupt within a year, why would a bank keep lending money to them? Yet Silicon Valley did exactly what any sensible bank would never do!

[@aquafishcspeia2921]

Because that 1/10 unicorn pays more than enough to cover the losses of the other 9? At least when tech stocks have insane valuations.

[@bullettube9863]

@@aquafishcspeia2921 That is why some banks act more like gambling casinos then banks!

[@respectamerica2382]

LET THEM FAIL!

[@GeckoHiker]

My inflation experience is negative inflation. That's because nothing is expensive if you don't buy it and I don't buy it. Let's see how our family does this. Victory Garden. Backyard chickens. Woodstoves. Deadfall for woodstoves. LED lights. Zero Waste. Clotheslines. Clotheslines indoors. Victory Garden, indoors. Minimalism. Television and cable? NO. Fast food? NO. Junk food? NEVER. Starbucks? Hard NO! Meal prepping. Yes. Debt? NO NO NO.

[@sharondavid-melly1498]

Thank you so much for having coherent and brilliant Robert Reich on your program 🇺🇸💪

[@Snickarz]

Thank you for your honesty (I don't know). Please keep in mind that average american citizens still have a very good weapon against corrupt government: their wallets.

[@idmhead0160]

BS. Inflation is not going down. Food prices keep going up. It's price gouging

[@VoightKampf]

We need another Theodore Roosevelt Trustbuster.

[@JoseLopez-tk4tq]

Damn right!

[@karlhungus545]

This guy is brilliant, and only he and Bernie Sanders seem to truly 'get it'. Too bad Americans don't pay enough attention to either of them...

[@smokindauberdoo4208]

Thanks my BROTHER

[@hfc3249]

Looking good, Mr Reich!👍

[@andrewhart6200]

Perfectly stated!!!! It is most definitely not a wages issue - the rich have gotten out of control!

[@muffintopnc]

Robert, I encourage you to look a bit deeper into SVB's demise. It's not that they were overextended in startup loans, but rather they were holding far too much in Treasury bonds at long duration while interest rates are going up so fast.

[@gregorysagegreene]

Exactly what I said in my post, but do you think his proles believe him or us!

[@suicune2001]

The stupid bank invested in crypto. It was guaranteed to fail.

[@anthonydelfino6171]

The thing is, treasury bonds are usually considered good and safe assets for the banks to have. Jerome Powell's insistence on continually raising the rates is what made them less valuable, but offloading them at a loss is also a bad idea for the bank. Better to hold them and wait on their return, which was the right call at the time. It was only when they experienced a bank run due to the interest rates going up that it became a real problem for them.

[@rigorodriguez2771]

All banks are in trouble because they were all doing the same thing a couple of years ago. They were all borrowing from the Fed at .25% to purchase bonds at 3% return. Everyone with real savings will go to their bank next week to withdraw and get CD's elsewhere with 5% return. Problem is the banks are no liquid, they bought 10 year bonds. They don't have the $. The FDIC will increase the insurance to 500K over the weekend. Mark my words!!!

[@FriendlyFarmMachineryToolCpBel]

Great assessment, and "they" hail themselves as financial geniuses! The turmoil that will come with "their" fall, that may be incalculable.

[@jeremygregorio7472]

Why do we just take it for granted that the FED has to do anything? Raising interest rates isn't helping. If that's the only tool they have don't use that tool if it doesn't work. If the only tool I have is a semi-automatic rifle I don't try to use it to do brain surgery

[@jntj3007]

I agree. However, I also believe that when the Fed raises interest rates, it does in fact help some folks; just not those of us folks on the lower portions of the economic scale who actually need that help.

[@thenn869]

if your a hammer, everything else looks like a nail,,,,,,,,,,

[@eddapultstab2078]

You know half the countries heads are spinning from that remark right now, because any problem can be solved with a "good guy" with a gun like trespassers, divorce, jaywalking, people staying far away because they think think that guy is crazy........

[@8088I]

Amazing all the concern about Banks but nowhere near a similar concern for Economic Contagion from Student Debt implosion.

[@thevision4734]

Capitalism where the Federal Reserve rigs the game (socialism for the rich and corporations and harsh individualism for working people)

[@evita9284]

I met the person on the left before- I met him while in Boston and we shook hands. He was a big man. I asked him what he does besides reporting and he surprised me by saying he was the actor for Kang the destroyer in Ant Man and the Wasp: Quantumania. Respect.

[@acorn_studio8]

Congratulations on reaching 400K subscribers on KZbin !!

[@GrandMasterWizard]

Wow, how brilliant is this show . . . Robert Reigh is a genius.

[@js6271]

Corporate greed is hurting families and people around the world.

[@kathyrama4570]

This is scary, really scary.

[@codacreator6162]

When putting money in a bank is the same as putting it in the stock market, we’ve got serious problems.

[@eddiemunster8634]

So the bank gave out all kinds of bonuses to employees before being taken over? This sounds like insurance fraud! All the executives and employees should be forced to give back all the money that they stole from the bank before it collapsed

[@d.virgallito3490]

Oh you mean GREED?

[@geopoliticsjunkie4114]

Whatever you do DO NOT PULL YOUR MONEY OUT before the bank managers sell their bank stock whatever you do DO NOT PULL YOUR MONEY OUT before the "Special" people get their money out

[@dadmezz4024]

What would FDR do?

[@gothboschincarnate3931]

I would ask...but here she comes....here she comes........

[@FirewindII]

You go, Bob. Glad they've got you out front pronto!

[@tommycollier9172]

Robert I'm in my 70ty and this scares the crap out of me

[@suzmaca650]

Thank you so much for providing such informative videos

[@fu2201]

The market us just weeding out the weak and mismanaged banks

[@hunnybadger442]

All you have to do is keep an eye on Larry Fink... And learn to read between the lines... I called this exact thing about 2 months ago... This is just the beginning...

[@scrappychildhood6633]

Recessions only hurt wage slaves not people who have there own source of income it's sad yet 80% of USA are wage slaves

[@grmpEqweer]

That makes investors the slavers. Edit: "Their own source of income" is almost always profiting off the labor of others, right? That's what slaveowners do...

[@jntj3007]

I agree.

[@milfordcivic6755]

Their......NOT THERE

[@scrappychildhood6633]

@@jntj3007 The system starts you @ 16 years old to 30 your earning 7.25$ an hour to 25$ an hour. Very hard to build wealth on this income unless making Horrible sacrifices to obtain wealth. After you kick poverty ass You don't want to return to that hell again yet risk losing what you had when you were poor. It's possible if I build and bought companies my employee would notice a shift in behavior $ and changes them it is just for evil or worse and may lose themselves. If Heaven Exists you'll see a handful of Rich people the majority are in hell if it exists. The type of wealth many want to become is seeing a homeless family drop 400k on a nice home hand the keys over and say have a blessed life because that 400k is like 4000 to you.

[@brucebasile5083]

@@Zach-ju5vi Look everyone it's Zachoff the irrelevant troll triggered by the great professor Reich.

[@peterm4475]

As long as the CEO's mega bonus is protected.....

[@davecanoney5249]

Several Danish banks are down at the moment! Its all connected! Withdraw your cash NOW!

[@novamaster0]

Obviously we've just to keep the house of cards stable long enough for the current generation to have a happy retirement, and then it come crashing down and take Gen X, Millennials, and Z with it.

[@Jim73]

2008 wasn't just "contagion", it was completely rickety foundations. But with extreme wealth concentration, even a small percent of major investors getting jitters can destroy economic sectors. A GREAT REASON TO REDUCE WEALTH INEQUALITY. Fewer actors = greater instability

[@MaxItUpwithMarta]

Robert is a genius in my opinion!

[@fig1115]

i don't think hes genius i think hes decent and tells the truth as he sees it . something we don't often see on tv .

[@diannshoemaker6419]

THIS IS EXACTLY WHY IT WAS STUPID TO DEREGULATE THE BANKING INDUSTRY. THANK REPUBLICANS FOR THIS. VOTE BLUE

[@doktormcnasty]

They both work for the same people. Instead of going after those who caused the crash of 2008 Obama stocked his cabinet with them.

[@b991228]

When a bank and its depositors are protected by the federal government doesn’t the government control how much loan risk a bank should take on? This isn’t like the the mortgage mess we got ourselves into? History doesn’t repeat but it can often rhymes.

[@bruxi78230]

The government sets overall standards for capitalization and FDIC insists that banks pay for insurance policies to cover depositor up to 250k (just like any bank). Nor does it have anything to do with mortgages. The details aren't known yet but some experts believe this bank was investing in such a way that they were betting on the yield curve becoming normal from the odd inversion it's in now. It went badly against their positions and the bank failed.

[@Robert-di3kv]

Reich and Krugman consistently wrong decade after decade on just about everything. It’s actually hard to have a track record as bad as these guys. Pure comedy gold.

[@stevewise1656]

This is a bank run started by Peter Theil. He's leading Trump's campaign fund raising, Musk business partner and today Musk said he's considering acquiring SVB.

[@OGHiddenpaw]

Get the SEC to do their job. Start finding businesses for unfair practices and break up monopolies.

[@fredfox3851]

Perhaps when taxpayers bail out banks we should buy shares and become its owner. As major share holders we can reign in and renegotiate banking's corporate bigwigs ridiculous pay packages and parachutes. As the bank recovers, its profits will be our profits, repaid into USA's treasury.

[@tarajoyce3598]

We should be given the money as citizens to decide who we want to bail out.

[@toddodell70]

IMHO Powell isn't aware of the slow wages not being the cause. It's just a chance for him to, as he'd repeatedly stated, to remove any upward pressure on wages. IE Stop or reverse wages and increase unemployment to 5-7%(the number is my guess).

[@kristimunn3010]

Thank you! Wages are absolutely not rising.

[@frankyhonnolus5528]

i can’t believe what I just heard this man uttered. Prices are going up because of the monopolies raising prices using the inflation as excuses?? Where did that “inflation” come from then?

[@nickjw88]

Break them up.

[@gringadoor5385]

It means nothing, absolutely nothing. Higher for longer baby.

[@shadowaitherios6172]

Dude's spitting facts 💯

[@dragoonzen]

400,000 Subscribers!!!

[@malanalan1]

Fed, Keep raising interest rates. Wipe out all gamblers who live off of the savers.

[@callistomoon461]

Risking the economy and stability of financial system because of slightly elevated inflation. Smart thinking, Fed.

[@VisioVibes]

Does it affect global tech market or services?!!!

[@klauskarbaumer6302]

Prices are not rising, they have no agency, prices are being raised by businesses some of which have good reasons, a lot of them have not. We have to speak clearly, since sloppy speaking makes for sloppy thinking and vice versa.

[@lip124]

Its true what Robert said these companies are using inflation as an excuse cause while inflation is going down prices are not down though, so it has to be these companies.

[@dianemcdonnell1055]

You have the bulls the bears and the pigs. Who gets slaughtered first 🐖. Corporations and their profits. Pig's.

[@sird5878]

Any monopoly that exists today existed a decade ago. It’s not businesses. The issue was stoking an economy with trillions when production went down. Ahem, supply and demand. If the government wanted to solve this issue most effectively they’d increase taxes by the amount of inflation. That would slow spending and reduce debt.

[@paulcoverdale8312]

Thanks for not trying to turn this balls up into something it’s not. We will see Sunday/Monday when the Eastern markets open an the UK etc.

[@alanmcrae8594]

So, are we looking at an inevitable late stage of the Silicon Valley high tech industries bubble? Our past offshoring of many industries who had matured to the point of very low ROI made a space for capital investment in the nascent information age/digital revolution and everything that has resulted since then. Economic history seems to show that this is a well-established industry lifecycle pattern, and at some point the law of diminishing returns kicks in and a growing/dominant industrial sector starts to falter & a series of market bubbles burst that portend the aging & declining of its relative importance to the national economy. As we're clearly in a debt bubble, an inflation bubble, and the beginning of a re-localization trend that coincides with changes in economic alliance blocks & rising political/military tensions, it should perhaps be no surprise that a mainstream economic sector like Silicon Valley high tech would start to get a little wobbly. The idea that digital technology will save us from everything else that ails the human race is pretty naive. Maybe the negative side effects of social media are the digital equivalent of toxic industrial pollution that makes its way into the air, water, soil and our bodies? In any case, the changes that we need as a toxic materialistic culture are becoming more obvious, and maybe the faltering of Silicon Valley is actually a good thing. Perhaps we will start to look elsewhere for a return to balance & sustainability.

[@dcal1736]

Everyone needs to beat the drum now to prevent AI from being used in the markets.

[@genkiferal7178]

What was the guest speaker's name? I loved him. He was right and people need to hear it again and again.

[@joz411no8]

When an individual goes bankrupt, it’s n them. When a financial institution goes bankrupt, it’s on everybody.

[@Laura-LaFauve]

Perfect! Thank You!

[@peternorthrup6274]

The government will end up paying every dime. Including everything above the $250,000.00 that's insured. Watch and see.

[@gmk91005]

Inflation has been running between 5% and 6% for the past couple of years, depending on which metric you prefer to use. Low wage workers are suffering the most by this.

[@RobertDooley-sl7cp]

Robert has no idea why it failed but still decided to answer rather than say it's too early to know.

[@tomdonahoe3539]

Hey Federal Reserve, When the only tool you have is a hammer, every problem looks like a nail.