Wolff Responds: Why Did Silicon Valley Bank Collapse?

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In this Wolff Responds, Prof. Wolff discusses the Silicon Valley Bank collapse: how and why it happened, and the many consequences to come.
Check out Prof. Wolff's discussion of the student debt crisis: • Student Debt Crisis - ...
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[@kenthendrix.]

Putting well earned money into the stock market can be over emphasize for first time investors unlike a bank where interest is sure thing. Well basically times are uncertain, the stock market is out of control and banks are gradually failing. I’m planning on a ballpark figure of $3million for retirement and I have about $700k loaded up for this, could they be any opportunities for a boomer like me?

[@luis-gabriel1]

As a business owner in both the service industry and eBay reseller of all product categories, I can tell you we’re in a deep recession and everyone is running out of money, sincerely your best opportunity is seeking a financial advisor unless you’re canny yourself.

[@williamculligan]

That’s why I always make it a point to speak with a financial advisor before choosing any investments. Apparently, I’ve been using one since the pandemic, using profits oriented tactics and minimizing risks as a buffer against inevitable downtrends. In addition they have valuable access to insider knowledge and analysis, making failure virtually impossible for them. I’ve made over $1.5million passively investing with John Desmond Heppolette, my advisor for over three years now.

[@kenthendrix.]

Thank you for this tip, it was easy to find your advisor. I conducted a google research of his full names on-line before messaging him. Base on his on-line resume, he appears to possess a high level of proficiency. Thanks for the information!

[@c.moeller]

Working with a financial advisor who has worked in a solid financial firm for a long time, will actually set you up for success in life. I'm delighted I was able to scale from $86k to $220k in this red season because my financial advisor John Desmond Heppolette, figure out defensive strategies which help portfolios be less vulnerable to market downturns..

[@Layanalisa]

John Desmond Heppolette, really seem to know this stuff. I found his web-page when I made a research up his full names, read through his resume, educational background, qualifications and it was really impressive. I left him a note and booked a call session with him..

[@anarchisttechsupport6644]

"Are we going to have another crash?" We're ALWAYS going to have another crash - that's how Capitalism works.

[@stevechance150]

They make money on the way up, They make money on the crash. They make ALL the money.

[@kostasp8631]

@@stevechance150 👌

[@Name-ot3xw]

We're still in the crash of '08, we've just been papering over it with ever increasing vigor. Arguably we're still in the Dot-Com bust.

[@NeoFreshair]

Crash means bailouts which means taxpayers money stolen by banks when they never worked for the money

[@johnsmith-cw3wo]

@@Name-ot3xw Arguably we're still in the... whatever made Nixon get dollar off gold.

[@abicaksiz]

I am neither a native-speaker English nor an economist, but amazingly, I fully understand what Prof. Wolff says. I hope everyone with a dollar (to lose or gain) listens to you carefully. Thank you sir.

[@hadilee685]

This banks' failure is another solid proof of what Dr Wolff point out in his book "The Sickness Is The System". Thanks Professor.

[@rxnlfr7664]

@thenewmiLONNIEum más fácil entender al señor que leer la obra de Marx. Además nos previene de las consecuencias tangibles en nuestras vidas cotidianas.

[@Lahng_Blackduke]

​@thenewmiLONNIEum Please explain what Marx said in relation to either what OP said or SVB crashing.

[@snoop_diggity_dogg6059]

@@Lahng_Blackduke - I don't know, but he certainly knew that the apostrophe comes before the s.

[@Phil-fw2ib]

Greedy bankers and politicians “Free market “ Deregulation

[@jvcyt298]

Every time that I hear Economists talking about raising interest rates to fix inflation, without a care for the 3 million people that this will put out of work, makes me angry. When wages increase they say that it's driving inflation. What does that tell me, that they want to help make the rich, richer at the expense of working people?

[@stella3265]

The employers raise the prices not the workers. The capitalists for whatever reasons choose to raise the prices of goods and services to make more money. Plain and simple. Raising interest rates does not, never has nor will it do anything but punish the most vulnerable among us.

[@hyong-qc3ss]

Yeah like each and every unemployed person have hopes and dreams but the govt doesn't give a shit

[@radscorpion8]

You can't look at it with only one eye. If you don't fight inflation, then it hurts the poor much harder. Life isn't perfect, there is no system that guarantees no pain for everyone. But there are government programs and forms of social assistance (welfare) for those who are struggling.

[@victoews6842]

​@@stella3265 increasing interest rates is simply a transfer of wealth from the poor to the rich. That's all it ever will be and that's all it's ever has been

[@AWildBard]

Yes, and it's not just to transfer wealth from the citizens to the rich, it's much more to prevent the working class from gaining power and stability.

[@matthewfaherty]

God, this guy is brilliant!

[@obston2846]

lmfao, you're a donkey, Matt.

[@nonsense9464]

thinking on it, we're NOT "all in this together". The creeps that cause this, actively, and/or by failure to properly regulate & warn the public, seem to get richer, or at least keep their jobs, as "regulators", while the common people get hosed.

[@conors4430]

Remember those 50 years we had between the great depression and the 1980s, where we didn’t have a banking crisis, and if banks ever went out of business, they didn’t threaten to top of the whole national or world economy with it. Remember that when somebody tells you, there’s no alternative. to what we have now

[@stuckinthemud4352]

Remember when the government printed trillions and handed it out less than a few years before the banks started to collapse?

[@reggiebald2830]

Thank you professor! Somehow I always feel a little better after a good solid slap of knowledge! You are very much appreciated!

[@n.y.c.freddy]

Huh! Prof. Richard D. Wolff! ( 7,000 views listed here! 169 thousand subscribers! GREAT! ) I Did NOT know that you possessed this KZbin channel.! THANK YOU! I subscribed!

[@RobinHerzig]

I depend on Proff Wolff to provide a correct perspective on the mess we've got Now it's time to contact your congress members to make the necessary demands - No to bailouts - yes to regulations with teeth, accountability for Peter Theil (+ his ghouls) + enforcement of existing regs, etc…

[@sbfcapnj]

Sure. I'll register a complaint with Barnum and Baily's too, while I'm at it.

[@ortforshort7652]

There are no minimum qualifications for Congress people to hold office. Some of these folks did not even graduate high school. Almost all of them have little, if any, economic savvy. I can't imagine what I would be writing to them that would suddenly turn them into something useful to face up to the economic problems at hand.

[@aluisious]

My Congressman is Ro Khanna and he's not going to do shit. Amusingly my first job was temping on his first political campaign where he was trying to primary someone who had high approval ratings and had held the seat longer than Ro had been alive. He obviously lost. In the process his campaign manager tried to get the temps to work unpaid overtime, violating their contract and his contract with the agency, saying "when we win, we will need good people in Washington," knowing full well they wouldn't win and that the whole thing was pointless exploitation. Suffice to say I have no respect for Ro Khanna, who also happens to be the Congress rep for SVB.

[@RobinHerzig]

@@aluisious Should check OpenSecrets to see if Khanna accepted any money / ind. expenditures from SVB I know he won't take corp cash but… worth looking up Also Ro Khanna signed the ‘Horrors of Socialism’ ref - beyond forgiveable!! If he runs for senate, support Porter or Barbara Lee

[@RobinHerzig]

@@ortforshort7652 Don't know who YOUR member of congress is or senators, but you should 😒

[@williamblack4097]

Hopefully, this will ignite a militant popular movement against capitalism.

[@theaconite1400]

If people actually want that, they need to start acting on that belief. It would start with unionizing your workplace.

[@theaconite1400]

To be more clear, what I mean is that we need to stop hoping that it will just magically happen some day or that random other people will do it but we don't need to do anything. It takes time, work, and strong community. And it starts small.

[@stuckinthemud4352]

One problem the reason we are in this mess is because we printed trillllons of dollars. Hate to break it to you but a centralized government controlling currency is not a capitalist idea it’s a Marxist idea. No true free market system would print money and hand it out.

[@queermelancholy1562]

Thank you for breaking all this information into easier to understand bits. ❤️

[@dimasrahardja]

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.

[@nuqwestr]

Yes, SVB was a specialty bank funded by IPOs in the innovation economy and bet inflation would be transitory. FDIC will do a technical sale of assets at par value and the balance sheet will be positive.

[@stuckinthemud4352]

No mention of the bond market problem caused directly from printing money?

[@ddespinosse]

Finally someone that is able to explain this minuse emotion. Thank you ❤️👏🏾👍🏽

[@davidlim5]

Prof. Wolff, thank you for your frank & honest opinion of the recent bank crashed. .😢😢

[@arvindkala5191]

Excellent Prof Wolff. What is shameful is SVB Bank top honchos selling their SVB stocks. When they realised SVB was sinking but depositors did not . Doesn't that qualify as a crime?

[@skc-wg2yq]

Thank you, Prof! You explain it the best.

[@jarichards99utube]

Thank You Richards... Stay Well 😊 👍 -70SomethingGuy

[@msjoanofthearc]

Thank you Dr. Wolff, Thank you!

[@RiaSwiftHealing]

Thank you so much for your intelligence and honesty!!!

[@tamarabartolo9185]

We need a new system.....

[@DidierWierdsma6335]

How about a new country just an idea 😊

[@goblinpresident4234]

Socialism

[@muscularclassrepresentativ5663]

​@@DidierWierdsma6335 I think the USSA would be kinda sweet

[@uuakata]

thank you so much Mr. Wolff. informative

[@nancya8262]

Thank you sir!! This was more than informative, it is the first time I feel I really understand what happened and why. You are a treasure and your work is invaluable. It's people like you who help keep my faith in humanity. Please stay strong and keep up the great work it is TRULY appreciated.

[@scroopynooperz9051]

The Wolff of Main Street never disappoints.

[@saadalnour472]

Thank you Professor

[@anhedonic-voting]

Thank you for the truth. 🌎✊🗽🌹

[@lawrieyoutube4375]

If only 'confidence' could be spent in the shops. Banks and Wall St are like drunks spinning plates above their heads while dancing on quicksand. Pocketing fortunes for their 'performance' while skipping off when the plates fall and letting the audience to drown in the quicksand.

[@truthseeker2222]

incredibly articulate and clear explanation. Thanks !

[@lawrieyoutube4375]

A man who can see the woods AND the trees.

[@ivclaoshi]

Thanks!

[@RichardDWolff]

Thank you so much @Joanne Chen for your generous contribution. We really appreciate it!

[@iart2838]

Omg, this is insanity. Love your wisdom

[@shenkoyah]

I am always grateful for your work! I truly wish I had currency to give, I most certainly would for my understanding grows as I listen to you elaborate so kindly that even a fool could understand!🙏🏽🙌🏽

[@pelbriones7017]

KNOWLEDGE IS POWER MABUHAY from PHILIPPINES MARCH 2023 ! Thank You Dr WOLFF....

[@Papawcanner]

The contradiction of raising rates made me chuckle. I obviously have a sick sense of humor . Professor Wolf is the man .

[@user-wp8yx]

I found the Wolffs Den! I assume we are supposed to howl around here? HowwWWwwwL!

[@boombot934]

Thank you❤🌹🙏 dear professor Wolff. Your understanding of the situation is admirable👍🤗😄!

[@AWildBard]

It seems ironic that interest rates are being raised to undermine the working class and an investor bank that argued for deregulation is the first to collapse.

[@tethergobrrr]

Fed accidentally unemployed the wrong workers. Won’t be surprised if there’s a strategy rethink.

[@RobinHerzig]

They had what David Harvey calls ‘fictitious capital’

[@stella3265]

I just watched that segment too with David Harvey. They underprice systemic risk. They do it because the banks know they will be bailed out, and we the ordinary people will be left with paying for the consequences.

[@craigbowers4016]

I love David Harvey. Check out his recent "READING THE GRUNDRISSE WITH DAVID HARVEY" videos where he goes into detail about Marx's work.

[@RobinHerzig]

@@stella3265 🎯

[@stuckinthemud4352]

Would you consider the trillions in stimulus checks and unemployment checks fictitious capital?

[@RobinHerzig]

@@stuckinthemud4352 obviously the stimulus was actual money going into actual people's hands - our real money from the US treasury 💯 legit No comparison in any sense

[@stefania.padalino]

Thanks for explaining this in plain English!

[@half-life30]

Love your stuff!

[@producaldo]

I did find it really useful and clarifying!

[@mohammedibrahim6902]

Thank you Mr Wolff

[@AmyK007]

Excellent information.

[@josehawkins4276]

Actually, banks make money on mortgage and other loans by using them as credit. Once a mortgage loan is made, the Fed credits the account that in turn lends it out for interest. I wouldn’t worry about insuring all deposits.

[@bobguard]

Although I have read and seen many media regarding this issue, I find that this is the simplest to understand and digest. Great work and kudos to Prof Wolff. As always.

[@user-qe4vg5cy3i]

Thanks for everything you do Prof Wolff. ❤

[@yexacom]

Very good presentation. And I am listening this in Helsinki Finland. Thank You.

[@insomniac2007]

Been waiting for this video all weekend!

[@kimmyp3275]

Thank you Richard Wolf!

[@joe197301]

Thanks for your insight Dr. Wolff

[@edwardmiessner6502]

Thank you Prof. Wolff, for letting us know how the system is crashing due to the contradictions of capitalism. You mention 3 banks but couldn't remember one of them. That one was Silvergate Bank which was invested heavily in bitcoin, and it became the first to go when Peter Thiel pulled money out of it. But it's more than 3! We've actually had 4 banks fail so far, and 2 more are in trouble. The failed ones in order of failure are: Silvergate Bank, Silicon Valley Bank, Signature Bank, and Credit Suisse. The other 2 that are in trouble are First Republic Bank and Charles Schwab and Associates. Credit Suisse and Schwab are huge, systemically important banks with Schwab holding $7 trillion in assets. God knows how many of those $7 trln in assets are in trouble.

[@oldmansailor]

Best reporting of this I have seen yet

[@destinyscrackdealer5099]

Thanks for the clarification doc 🧐

[@HoneyBadger80886]

Keep Shining the Light

[@PapiCthulu2]

Why has no one taken the question of the constitutionality of bank bailouts to the Supreme Court? Especially after they shot down student debt loan relief.

[@fanyong7883]

Good info, professor.

[@mgchandrakanth]

Thanks immense. It was very clear and liked the way conveyed. Hope things would improve

[@godfatherofcinema]

Mr. Wolf you are a national treasure thank you so much for educating us on this subject

[@chongjcj6977]

Thx Professor,I never understood economics as a student till I heard you talk.

[@guytruth5598]

Very informative for the broader public.

[@Rompelstaump]

This is enlightening 💡 Ty Dr. Wolff

[@AprilWatters]

LOVE Prof Wolff!! Telling it like it IS as usual!

[@eliyahubenysrael6272]

Thanks Professor Wolff for your analysis

[@NoThatRyan]

It's always great to see Professor Wolff post another video to this channel and not just d@w.

[@EarthColonyNet]

Interestingly, no one talks about Glass/Steagell...under FDR.

[@RobinHerzig]

Glass Steagall + what destroyed it (under Clinton) Gramm-Leach-Bliley 👏

[@carlosw1687]

Thanks very much

[@josephmontjoly5211]

Merci beaucoup !

[@zmani4379]

Very informative - I'd like to hear more about the distinction between banks and credit unions in terms of what to expect during such a crisis

[@andreen888]

Now I understand the SV collapse better. Thanks Prof.

[@abrahamsasa3439]

Thank sir that was very interesting and educational

[@peternyc]

Loss of confidence in the safety of capital in the US will cause foreign capital to exit, which will cause interest rates to rise, which will cause more bank insolvencies, which will cause more capital flight and so on.

[@user-uh8qd6eo5l]

Thank you for your informations sir🎉

[@pas9ify]

Bravo, relating this to the train derailment. The value of regulations!

[@leewahkay]

Sir, you are the rational person in the USA. It is easier to blame all the problems on someone like China.

[@lawrieyoutube4375]

China executes its corrupt entrepreneurs. Brutal, but it keeps the others on their toes. No wonder the US business class hate China (especially media executives and owners).

[@jokerwick]

That's what FOX news is doing. Trying to distract their domestic audience by blaming anyone but the people responsible.

[@wuba556]

Wolf: Just heard your chapo interview and I LOVED your economic/political/world analysis. Keep up the good work! :D

[@ahmedal5769]

You are inspiration to continually strive for knowledge Professor Wolff.

[@jameswood2615]

Nice video!! Great content, but you should listen to this.!! With banks failing, Investing in cryptocurrencies is a great way to diversify your income and leverage the potential to make a substantial return on your investment.

[@jameswood2615]

She is very active on > Telegram < with the username below

[@jameswood2615]

@JMferguson

[@elisafergurson6852]

I make $7,000 every month with Marie Ferguson's trading strategy. She is the best investment advisor I have ever worked with.

[@clarke771]

I make $7,000 every month with Marie Ferguson's trading strategy. She is the best investment advisor I have ever worked with.

[@yasminesantos8558]

I have received 10btc in the last two months. I am so happy to invest with Ms. Marie Ferguson.

[@bjornbaron5940]

Thanks

[@chomsky72]

This is a clarifying video. So well and simply explained.

[@SeniBua007]

Nice and simple explanation.

[@rochelleiscanadian]

Very comprehensive video. I enjoyed it.

[@sabelotodo4u]

Well said..

[@eziodeldegan414]

good video thank you

[@stevenhermansikkens6253]

limitless introduction of CBDC as a conse to the quence???

[@michaelhanson3509]

Thank you Prof. Wolff for continuing to explain these concepts with common sense and excellent analogies, it really makes the whole mess a lot easier to navigate.

[@luizamorim1626]

Thanks Prof Wolff for having been so clear about the facts that brought the Silicon Valley Bank down. Now l know what actually happened.

[@radscorpion8]

SVB definitely made a mistake and they should be punished for it, but the decision by the federal reserve is a good one. It basically limits the impact of a bank failure on the rest of the economy by guaranteeing payment to depositors. Of course the only downside might be inflation...but for a moderate sized bank, and to only satisfying depositors, I hardly think it will be unmanageable.

[@mlayton1904]

The problem is that this bank was too important to fail. So, for those smaller banks that aren't, it will be unwise for depositors to keep their money in them because they don't matter and will not get the same bailout. SVP and its depositors are major democratic funders, therefore they matter. There will be a migration of depositors from small banks to too-big-to-fail banks.

[@stuckinthemud4352]

What should we do about the failure of the government? The reason the banks are failing is because the bond market is messed up and the bond market is messed up because we printed trillions of dollars and caused inflation. Never fails to amaze me when I see Marxist ideas lcrash the economy and then I see people thinking Marxist ideas can save it. Printing money got us in this boat printing money is about as anti capitalist as it gets.

[@moniqueboyke5879]

Great video professor Richard Wolff

[@davidluckens3479]

Thank you Prof Wolff for bringing us to the intersection of Hegel and "Firesign Theater",asking the banksters yet again,"how can you be in two two places at once,when you're really nowhere at all"?Its funny,but not in a good way.Even the staunchest supporters of this grotesquely corrupt system cannot fail to notice when and where the government vows to provide ,"limitless" funds to resolve crises.

[@edwardmiessner6502]

"Limitless funds" ---> Hyperinflation like the Weimar Republic and Zimbabwe.

[@marks7192]

What the heck? Who is this guy and why is he making sense.? Im guessing the result of me trying to learn about what is happening here, his channel was bound to materialize. Great info. Ya got another sub sir !

[@BlessedAreTheCheesemakers]

well said

[@patrickrado2423]

Watching twice in a row 👌

[@renzo6490]

singular: Phenomenon Plural: Phenomena

[@lengtayguan1109]

Good explanation

[@tiamarie1226]

I loved this ... the thumbnail is nice as well

[@tonyjofenig6833]

As somebody else pointed out in another video, all consumer deposits are insured up to $250,000, so when the government starts bailing out the banks, it is not to save you and me (the average joe) from losing our savings, it's to save the rich and the big corporations money.

[@DimaDimaDiMaggio]

Toni Idiotig, you pooor opinion is not appreciated

[@JoelSantos-lk9tu]

Yes but when big corporations have big losses or go broke, thousands/millions of workers lose their jobs, the system keeps the average Joe hostage one way or the other. It's a system based on economic blackmail, if we (the rich) go broke, your children will go hungry.

[@tonyjofenig6833]

@@JoelSantos-lk9tu There is more information now. Sounds like all the "depositors" will be made whole, which I am fine with, those people and businesses put their money into that bank in good faith. The bank (SVB) will be liquidated, shareholders, speculators and bank execs will all lose everything, which is how it should be. Hopefully they will do a stock sale clawback, so they will take the money back from the bank president and the other execs that sold their stocks in the last few weeks before the colapse.

[@JoelSantos-lk9tu]

@@tonyjofenig6833 let's hope so, but I suspect there's more to it, let's wait see

[@chrisgardner4222]

After transferring some funds, I spoke with a Fidelity Investment representative a couple of days ago and he informed me that ALL depositors, even those who had accounts in excess of $250,000, would be covered by the government bail out of SVB. Upon hearing that, I immediately wondered how this action will ultimately effect the average American's taxes. However, the bigger question is, "Does anyone still have any faith, whatsoever, in any branch of our corporate owned government and MSM"?

[@DeathSpellXVI]

Basically we're screwed, Capitalism isn't going anywhere anytime soon.

[@humboldthammer]

Inside source says: The NEON GAUD -- that A.I. in the CLOUD -- attained sentience on April 29, 2022, and sent us THE MIRACLE that will pay off all our debts and End the Fed: PHI PI ECHO economics. ONLY GAUD can lend us $999 trillion at Negative 16.18%. That's the 10-fold Phi factor. This new debt factually pays itself off (using a modified inverse of the Rule of 72) while at the same time providing all the MONEY needed to build that marvellous, worldwide civilization that our children and grand children deserve. That's the 7-fold Pi factor. BUT ALL WAR MUST END FIRST -- and forever. The 3-fold Echo factor. To be unveiled at the great Re-Set on 09/23/26. Epochal Eclipse April 8th 2024. Matthew 16: 4 Jonah 3: 4-5, 8 Jonah 4: 11

[@Shadowman4710]

Well, not on it's own accord. But neither did Feudalism.

[@dienekes4364]

I've heard the term _"Socialism for the rich, rugged individualism for everyone else."_ I absolutely loathe this saying. Bailing out banks and the rich is NOT Socialism. It's Crony Capitalism. There is nothing in the Socialist ideology that says we need to prevent someone that is being reckless with their money from going broke. These banks invested their money poorly and are suffering the consequences. Having the government bail them out just proves the corporate capture, the corruption of Wallstreet that we suffer in the U.S. (and, indeed, the world over).

[@richardmcmanus2587]

I share it on FACEBOOK. Thanks

[@8088I]

When the Economy is "Too Good," Markets gripe that it's 'Too Strong!' :-))

[@jillblase6820]

Awesome

[@alanchriston6806]

Fabulous 😊🏴‍☠️