Silicon Valley Bank’s Collapse w/ Mark Cuban and Sheila Bair | The Problem with Jon Stewart Podcast
Vložit
- čas přidán 25. 05. 2024
- Could the SVB collapse have been avoided? On this week’s podcast, we chat about how Silicon Valley Bank’s risky investments lead to its eventual failure. We are joined by former Chair of the FDIC, Sheila Bair, and entrepreneurial multi-hyphenate, Mark Cuban, who discuss where the regulation was for these banks, why we don’t bail out our citizens like we do our businesses, and what’s next for banks with similar investment strategies to SVB.
The full episode is available on Apple Podcasts: theproblem.link/SVB
Watch The Problem With Jon Stewart on Apple TV+
theproblem.link/AppleTV
Subscribe to The Problem with Jon Stewart podcast:
theproblem.link/ApplePodcast
Subscribe to The Problem with Jon Stewart’s CZcams channel:
theproblem.link/CZcams
Follow The Problem With Jon Stewart
Instagram:
theproblem.link/Insta
Twitter:
theproblem.link/Twitter
Follow Apple TV:
Instagram:
theproblem.link/AppleTVInsta
Facebook:
theproblem.link/AppleTVFacebook
Twitter:
theproblem.link/AppleTVTwitter
Giphy:
theproblem.link/AppleTVGiphy
Follow Apple TV+
Instagram:
theproblem.link/AppleTVPlusInsta
Apple TV+ is a streaming service with original stories from the most creative minds in TV and film. Watch now on the Apple TV app:
apple.co/AppleTVapp
#svb #finance #podcast - Komedie
Once again, the profits are privatized, and the losses are socialized.
Yeah, let the bank fail and put the economy in a tail spin. 2008 all over again ! Only the billionaires with a ton of cash waiting around profit from that because they buy businesses on the cheap.
As Cuban was whinging about, at least the shareholders got taken to the cleaners. A lot of the deposits were *from* Venture Capitalists (ick), but their destination was payroll and R&D - which is generally good for workers (tech workers at least).
Considering a whole lot of tech startups got funded in the last few months (with all the Twitter and Facebook layoffs, there's been plenty of spare manpower running around) - that's a whole bunch of small to medium-sized businesses (and their employees) that would have been wiped out if they weren't made whole.
I'm all for punishing the Board of Directors and Shareholders who, for example, didn't assign a risk protection officer for 8 months before this - which is banking malpractice to the highest degree. But covering the accounts (whose money wasn't wiped out but just placed in stupidly long-maturity bonds and are thus unavailable right now - which is like trying to protect your car from scratches by putting it on the moon) is a public good.
Only for the rich.
b socialism for the rich is ok. Again the bankers have gambled with risky investments and lost. Greed strikes again...
@@marcelopacheco2479 you do realize the banks were bailed out (socialized) in 2008? They were bailed out even more than these banks. Do some research
They didn’t bail out the mortgages not because of moral hazard, they let homeowners go under so they could pick up properties at pennies on the dollar.
By what mechanism would the feds have "bailed out" the defaulting mortgages themselves? "Oh, sorry to hear you can't pay your mortgage and can't refinance anymore because the housing market crashed, let us just go ahead and pay it off for you"?
Backstopping depositors to prevent a liquidity crisis does not seem analogous to any decision that was or wasn't made in the mortgage crisis.
And that property has trickled down to everyone including millennials who are so lucky to be able to purchase a house finally as they close in on 40…. Oh wait, wrong multiverse. Of course it didn’t
There were people making very low income buying up houses by lying on their mortgage forms. People buying multiple houses to try to resell them in what is essentially a pump and dump.
Everyone should have got fucked. Banks and buyers who couldn't afford the homes in the first place.
FACTS 💯
👏🏽 👏🏽 👏🏽
The odds were not "one in a billion," Mark. The odds of a bank that isn't taking precautions failing are actually pretty high. _Thats why we created laws to prevent that from happening._ Those protections were _deliberately disabled_ and this is the inevitable result.
Bring Back Dodd-Frank. 🤑🏛️💰💵
Hey, hey, wait a minute here. That sounds like accountability, and integrity. Something that has no place in the American government.
@@tvtothepoint Where did it go? It's still active as of today.
@@livingmodern
Not this modified, weak version, bring back the original.
The ongoing situation with banks is causing me significant apprehension. The potential failure of a sizable institution like SVB is alarming, and it raises broader concerns for me. A friend of mine, who oversees a rapidly expanding startup, experienced severe repercussions due to the recent bank run. Personally, I withdrew over $840k from my bank account, bearing in mind that the FDIC's coverage is limited to $250K. The prospect of a collapse has worrisome implications.
Given the circumstances, I'm contemplating investing in the stock market. I'm seeking input and suggestions on how I should approach this situation. Any ideas would be greatly appreciated.
We fail to realize that banks are commercial enterprises that are driven by greed as well. The over-leveraging of assets by banks starting in 2020 was one of the factors that led to SVB's collapse. I've never felt secure keeping a large sum of money in a bank. In other words, I invest through my financial advisor, reap the benefits, and then spend the money.
My wife and I were headed in the same direction while making financial decisions. Over the last couple of years, I withdrew my funds and entrusted them to her wealth manager for investment. While I might not achieve the same long-term gains as her, I am at least making a higher return.
@@MarkFreeman-xi3rk Would you mind telling me how to contact this specific coach using their service? You seem to have the solution, as opposed to the rest of us..
Through my wife, I got in touch with Margaret Johnson Arndt, and I sent her an email. She is guiding me. She has since supplied me with opportunities to buy and sell the securities in which I am interested. You can hunt her up online if you require care supervision.
Thanks for the advice. The search for your coach was simple. I investigated her well before using her services. Considering her résumé, she appears competent...!!
The impact of the SVB and SI crises has been clear as day on the regional bank ETF (KRE), which has taken a nosedive by more than 20%. This has triggered a ripple effect, causing a drop in the overall market. But, as history has shown us, a localized and narrow contagion like this presents a ripe opportunity to invest in solid and fiscally responsible companies that have substantial cash reserves on hand.
The Collapse 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 stock portfolio, what’s the best way to take advantage of this bear market?
Given that we are not accustomed to such uncertain markets, the fact that the US stock market has been on its longest bull run ever makes the widespread anxiety and excitement comprehensible. There are opportunities if you know where to go, as you noted that it wasn't difficult for me to earn more than $780k in the previous 10 months. Since I was aware that I would need a reliable and strong plan to get through these tough times, I engaged a portfolio advisor.
@@edward.abraham My portfolio has been in the gutter for the entire year, so I started researching new ways to profit in the market, but everything I tried just seemed to miss the mark. Please let us know the name of your financial advisor.
@@hunter-bourke21 It's best you do your due diligence, I have my portfolio overseen by "Julia Ann Finnicum" and her qualifications speak for itself. Most likely, the internet is where to find basic info, she has a noticeable page for consulting.
@@edward.abrahamAfter locating her, I composed an email and arranged a phone conversation. I'm optimistic that she will reply, and my goal is to conclude 2023 on a financially successful note.
As a former banker, I find it really odd that these bankers were ignoring the interest rates, ignoring the markets, etc. Usually when a bank screws up this badly, it's because the management did something risky in order to make tons of cash for themselves. But in this case, management was making investments that didn't even keep up with normal inflation. It's almost like they wanted the bank to fail and use it as a tax writeoff. What they did wasn't risky. It was just plain lazy.
Exactly. But, these people on this show just looking for views. These people know those people, Act like they not really impartially on everything about it. Gov. CA Newsom also has the ties to the people of SVB. Also Frank Dodd ( yes, irony this person same author who wrote the bill of Bank regulation back in early 2000's) on board at Signature bank in NY. Just a crazy world.
Exactly
Thanks - I also heard someone say that companies can have "cash sweep" accounts. In that once the cash deposit limit exceeds the FDIC insured limit amount, then the excess cash gets auto invested into Money Market or a non-cash account (short term treasuries, etc). Not sure of all the specifics but the person was basically saying a responsible corporate treasurer should take efforts minimize the risk of a bank run, even if the probability of occurring is perceived to be very low and by utilizing a cash sweep account, you can keep your cash exposure at the bank only to the insured amount.
It was because of SVB's clientele. A very small # of depositors (comparatively with "mainstream" banks) that are mostly hyper-connected and very *VERY* fast with moving/protecting their money (startups/etc..). Once a few core movers started to pull out, and especially publicly tell depositors to pull out on Twitter, it was all over in 2 days. Ramp-up was only about ~3 weeks long and the spike/death spiral was 2 days.
Management at banks are rigidly locked into following what everyone else in the market are doing. Imagine if they held a reserve ratio of like 60% instead of the 0.10% or whatever ludicrously low % is legally allowed... they would have survive this run, but they wouldn't have been able to make any money. It's like... either you leverage the fuck up with a tiny ultra-risky reserve ratio and make money, or you don't and your bank makes less profit and you get fired by your board/ceo/etc..
Can you blame them? In all seriousness can you blame them? If you knew the possibility of the federal government bailing you out was as close to a guarantee as anything you'd be ok with lazy bets too. So, now we'll have a bunch of rich assholes getting bailed out with our money again. I'm not really upset about it, after all, this happend all pandemic long. I worked my ass off so we could send money to folks who got to stay home, more money than I was making by working. I swear guys I'm really not bitter about this!
I love how Cuban went straight to "the free market will fix itself" argument for why this won't happen another dozen times just like all the other times.
It's always "stay the course" and things will just work themselves our. Remember trickle-down economics? Once the rich can't hold all of their money, some of it will sprinkle down on your head. Just keep working and be patient (and hope your retirement doesn't end up in some Investor's pocket). Remember, Hedge Funds, Mortgage Derivatives, and other Fiscal Fuckery is what this country was founded on, not hard work. ☹
SVB went belly up for giving loans to unprofitable green energy companies, the free mkt tells you green energy cant sustain economic growth at the current rate.
@Troll Police probably a troll, but SVB went under for the same reason they usually do: overleveraged backed by assets that lost a lot of value due to market changes. We learned that lesson in 1929 and 2007/8 and now in 2023. Glass-steagall needs to be returned to it's original state.
Usa 🇺🇸 should not be global leaders Their future generations will realise and bear the consequences of their present actions.
@@trollpolice SVB’s demise had ZERO to do with “unprofitable green energy companies.
That lady was very good at making all this make sense. I hope we see more of her cus most of the financial expert I see make it even more complicated than when I came in
Agree. She did well and she was so excited about her job and had such an optimistic personality that it was almost infectious. I’ve never had a better understanding on this topic and thanks to her I’m going to go read more about it.
Sheila Bair is the former Chair of the FDIC and is one of the foremost experts on the banking system and an amazing communicator about these issues. She is ALWAYS worth listening to and reading.
She is on the bail out team, so - grain a salt with that public optimism...
Sorry, but SVB bankers should be indicted for their financial nonsense. If all the accounts are "protected" then it tells banks that they can do anything they want to do and get away with it so the lack of regulations is the main cause of this nonsense. Cuban is wrong as he wants so badly to pretend it's a "one in a billion" incident but, in fact, it's an example of the lack of regulation of banks.
cuban goal is to give reason why the 'common people' like him need to be protected
He did say he wants more regulations on banks, not less. SVB should be a warning signal to enact stronger regulations.
Exactly this is a captialist country and if you invest you money there is a chance you might lose it and SVB lost the game so why is the damn FED throwing free bailout money for these already rich people. Lets be honest Mark Cuban should not be here, he's rich already, the moment i saw this man begging for some bailout money I was like the is gonna give it to them like its Christmas.
Correct and it has been pointed out that the large depositors would have gotten 90% of their deposits back if the bank has been allowed to go through the normal process of selling off the assets to pay back the depositors. This is just the wealthy holding the government hostage for insurance they didn't buy in the first place. It is equivalent to buying $25,000 of homeowners insurance then demanding that the insurance policy pay 100% of your losses when the house burns down. No private sector insurance policy would ever pay more than the policy was written for. The FDIC should not be held hostage by the wealthy for more coverage than they paid for.
@@Haan22 Here is the thing it was more regulated before this guess which president came in and F things up starts with a D. After the 2008 crisis and the crisis with Washington mutual bank, a bill was pass called the Dodd frank act which is to have enough capital to cover depositors called FDIC 250K and the most important which SVB did not do is to be able to pass a STRESS test.
The poor shareholders that got “wiped out” appear to be Vanguard, BlackRock, JP Morgan etc. I find it hard to believe that they 1) did not know exactly what was in SVB’s books and 2) weren’t hedged against the loss. Someone will now get SVB’s assets for pennies on the dollar 🤔
The company, SIVB actually owns more then just SVB. With the government backing ALL deposits, this bank will have no losses coming out of this at all and so the shareholders of SIVB will actually see the shares recover pretty quickly once the dust settles. I wouldn’t be surprised to see a special dividend to shareholders on the sale of the bank’s assets. The bank will change its name and continue business as usual.
Imagine JPMorgan bought a company full of false users for almost 400mm and found out several months later. Do your own research they say lmao
Yet JP made me jump through hoops to cash a check left by two deceased family member......three or four times. They should have been watching this bank as closely.
JP, bytch better have my money!!!!
Exactly why I never contribute to 401 bullcrap. It's been wiped out what 3 times in the past decade?
That's the point... Jon keeps conflating the depositors and the bank, saying they made "bad investment strategies" and got "bailed out", but that isn't what happened, and no taxpayer money was used. The people who made the "bad investment" decisions, ie, the bank, and people who owned the bank, did not get a bailout. The FDIC took over the bank, and made available deposit money, which will be funded by the banks reserves, which not all was immediately available to the bank (long term treasuries, for example, would keep their full value as long as they weren't sold early) and any deposit money that couldn't be covered is being covered by a one off addition to the "insurance premium" paid by the other banks to the FDIC for the insurance of their deposits. It's either something like that, or watch as people with savings in other medium sized banks (
This is a perfect example from game theory. If everyone trusted each other, then leaving the money in the bank was the correct action and no problem occurs. To put it lightly, these people didn't trust each other.
Peter Thiel taking his money out probably initiated the whole thing given how everyone among the Silicon Valley tech bro types particularly the libertarians finance tech bro types deify him in the most homoerotic way possible. I wonder if they’re trying to bankrupt Roku because it was a threat as basically the best deal among the still contentious and emerging and potentially/likely hugely important and valuable TV OS market, but that’s just wild intuition based speculation on my part to be fair. Anyway, reinstate and extend Dodd-Frank and Glass-Steagal and regardless of your party or ideological affiliation:self-identity, if you care about the future of the nation you should agree.
Now we just need to pick the next bank. BOA is the most Woke bank in America.
The one story that I remember about Peter Thiel was reading about his idea to build autonomous floating island city-states in international waters. It was supposed to be some kind of libertarian utopia where they could write their own laws and skirt taxes and tariffs. But what the article described was that they also wanted less stringent building codes. Yeah, that's exactly what you want on a man-made city floating out on the ocean.
If it's his goal to cut corners and forego safety measures for his floating version of Troy, then I say he should go for it. Let it take him and all of the other "tech bros" to the bottom of the ocean with it.
If the thing preventing collapse is to trust members of a vicious group (VCs) then it’s going to burn.
We needed a Jimmy Stewart to calm us down!
I remembered that exact "moral hazard" quip from the Geitner interview and tried to find it but it's been scrubbed from the net. Thanks Jon for bringing it back into focus. That 30 seconds of your old interview needs to be played, on a loop, for all to see. I remember the look on Geitner's face as he said it too.
Also, SVB seems to have not even HAD a Risk Officer or Manager for something like the last eight months. Incomprehensible.
Jon: you forgot two things
1. They grew from 27bln to 184bln in 1 years time.
2. Short sellers took positions in January .
3. Peter Thiel got all his money out before the crash
@@bh-zj4ytThiel directly created the run by taking all his finance bros to pull their money out, too.
Shorting the stock is unrelated to their liquidity problem. The stock could drop by 90% and it wouldn't have any effect on the depositors. Not unless the bank was taking deposits and using it to buy their own stock and claim that as collateral against the deposits.
@@phillipsusi1791 no one said shorting the stock had anything to do with the liquidity problem……
@@sailordaigurren8225so your saying if a bank is already in the process of a bank run and the public already knows Peter shouldn’t pull his money out ?
Wow moral hazard. 2008 was the first tent city in Seattle, called Nicolsville. After our mayor. Imagine had the mortgages been bailed out. Just maybe we wouldn't see soaring house prices and all the unhoused. That to me is the moral hazard, all these people living on the streets.
What Mark Cuban said is interesting that "management decided not to worry about a 1 in 1 billion event." In computer science a 1 in 1 billion event will happen, because the computer could be running at 100 million instruction per second or more, so 1 billion is going to come up pretty quickly.
That Urkel reference. Lol This is why I love watching this man.
Fighting student loan relief, but bailing out would be billionaires.
Yeah, I’m afraid all the banks and billionaires have learned from 2008 is that they can always scare the government into bailing them out. They like socialism when they get into trouble. What a sad state of affairs.
Go Jon. Your analysis before 9:37 was spot on. Cuban comes back to support the other richies. What a guy. Wait a minute. Who checks the bank of their employer? Hedge fund managers? Wow.
Timothy Geitner: Well we had to land the plane.
Me: On the backs of everyday people who served as your tarmac.
If they don't do anything about those huge bonuses that went out to bank execs days before the crash then it's 100% a bailout again.
Let's not forget they sold their stocks and cashed out.
They bailed themselves out lol
Another great podcast Jon you deserve so much credit just like the old daily show I can see why a lot of people get news from you straight up honest intelligent thought-provoking and of course a little funny😂
Jon Stewart thank you for your service to the country informing Americans
Anyone saying the FDIC needs to pay 100% of deposits doesn't understand how insurance policies work. The depositors bought $250,000 worth of insurance. They paid the FDIC for that level of coverage.
This is equivalent to buying 25,000 dollars of home owners insurance but when the home burns demanding the insurance policy pay full retail value for the home. Insurance doesn't work that way if you want 100% protection you have to pay for it before you file the claim.
Comments like this continue to show Americans have little understanding of how banking works. This isn't a home fire. The money didn't get burned down. The money exists, it's just locked up. The bank had a liquidity problem.
A backstop doesn't mean a bailout, they are different. The bank is failing because it was poorly run, not because it lost all of everyone's money. Everyone will get their money back because the company has assets worth its deposits. The government is just making it so that people will get their assets, just not all at once.
Thank you for the manner in which you cover these complicated issues, Mr Stewart & thanks for your service 🫡 .
Uh he handed the mic to Cuban to ask for his money back from SVB.
"I'm not a tech-bro."
- Mark Cuban (clearly a tech-bro)
The people responsible will have no actual consequences. Sure maybe they'll lose some money from the shares they owned, but thats not a big deal when they've been making money for years doing their bullshit. And they dont even get banned from the industry so they will be getting another cushy job at another bank soon.
We should look into Peter Thiel. He started the bank run. Did he have large short positions?
Apparently he didn't start it, just advised depositors to get out with >$250k.
@@crhu319 I don’t know, that’s why I asked. Thiel is a nasty piece of work. He tricked Elon Musk with PayPal.
Peter Thiel didn’t do anything
Why are we always making excuses for these people. Why is Cuban the label for good billionaires? This guy exists and is a problem for all of us. Responsible billionaires?
Keep up the great work Stewart 🎉
Yep. The question of whether it's okay to have true billionaires (which is different to "on-paper billionaires", who simply own shares in a business with a notional value in the billions based on future expectations, and NOT current value that can actually be traded... for example, Elizabeth Holmes was an on-paper billionaire, despite not even having a working product, based on a future expectation that was not real, ergo, not a "real" or "true" billionaire) seems to be the wrong question... truth is, we cannot afford all these billionaires, they are destabilising absolutely everything. It's not an economic crash we're heading into, it's a civilisation collapse. The proxy war against Russia is crashing our food systems that were reliant on the fertiliser, and their answer is to do the same with Taiwan as with Ukraine to start a war with China, while making inflation worse by adding higher interest rates to all of the debt in the system, right after a pandemic where we saw global panic buying within a "just in time" system that we spent decades building to allow shareholders to extract the value from stored inventory. This is how civilisations end.
Cuban is the poster boy for "good billionaires" because he's relatively friendly and young looking. It really is that simple. I don't think people think any further than that.
@@annoloki civilizations end and new ones begin. Time for a reset.
I LOLED pretty hard at "Not a tech bro", in a private jet, on a phone, with a picture in a hoodie. Totally not a tech bro.
There are plenty of single digit millionaires who are not good people. There are bad people at every level of wealth -- people who are manipulating the systems to their personal benefit and to the detriment of less fortunate, and people who are exploiting other people's weaknesses.
Cuban is worth listening to because he isn't one of the power hungry people. He isn't spinning stories for gain. He explains things in a way that makes sense. He can say what is going on at the billionaire class while most of media nowadays is just giving conjecture and/or spin. He is a proven capitalist which is good because we need people like this who can bridge our divided national conversation.
Listening is not a problem. Worshipping is the problem. The cults of personality are the problem. There is no human savior coming to save this country. We must save ourselves, and it must be done democratically.
I love how we're pretending they weren't paying bonuses out THE DAY OF THE COLLAPSE!!!!!
Yes they were paying their scheduled bonus out on the same day they had a run on the bank.
Crazy!
Jon truly shines in these financial interviews, no one else compares. He plays like he doesn’t understand, but his brother works for Wall Street and so could he. Shiela was great too. Hope to see more of her in the future
Jon proving again why he’s unmatched in interviewing!!!
He shining so bright! He took this opportunity to give a voice to the voice-less! We all know that if he weren't providing this vital service, Mrak Cuban would never be able to get his message out to the people! 😅
There are some disturbing revelations here actually in regard to how payrolls are paid from uninsured deposits, when once upon a time an employer had to pay its payroll even before taxes, legally. So how would one do that if that deposit is gone?
If I had the power to do so, I'd force the banks back into civil service and barred from engaging in politics. But alas, I'm a peasant.
Sheila Blair has been brilliant for many years. Mucho respect. Frontline has an .... "Easy Money" episode for those curious about Central/Fed banks. Elizabeth Warren warned in 2018 when Dodd/Frank was relaxed. Interest rate change key culprit for long bonds.
SVB said earlier this week, that in order to make good on those withdrawals, it had to sell part of its bond holdings at a steep loss of $1.8 billion. Bonds and stocks have been hammered since last year, as the Federal Reserve has raised interest rates aggressively, and SVB also noted it wanted to pare down its bond portfolio to avoid further losses. I'm still at a crossroads deciding if to liquidate my $138k stock portfolio, what’s the best way to take advantage of this bear market?
You’re right! The current market might give opportunities to maximize profit, but in order to execute such effective transactions, you must be a skilled practitioner.
On the contrary, even if you’re not skilled, it is still possible to hire one. I am a project manager and my personal port-folio of approximately $750k took a big hit in April due to the crash. I quickly got in touch with a financial-planner that devised a defensive strategy to protect and profit from my port-folio this red season. I’ve made over $150k since then.
who is this individual guiding you? I lost over $9000 just last week, so I’m in dire need of a financial-planner.
My licensed coach, Christine Blake Mckale is a highly experienced and knowledgeable specialist in the financial market. She possesses exceptional expertise in portfolio diversification, and is widely acknowledged as an authoritative figure in her industry.
Thank you for this Pointer. It was easy to find your handler, She seems very proficient and flexible. I booked a call session with her
Jon, thank you. I actually almost understood all of that. I appreciate your knowledge, you always know what you're talking about. You educate more than anyone. I just appreciate it so much. Keep doing what you are doing, it is incredibly important.
Kissing his ass for platforming billionaire who wants his non insured money back is a weird move.
Mark Cuban has the kind of LA face Bill Burr talks about in his specials xD
Listening to you mollycoddle Cuban while he dismisses the CEO’s insider trading was disheartening.
Cuban is really way off and wrong on this discussion.
“Access journalism” has its price
@@enriquebarrios Understood. Chemotherapy might help cancer, but that doesn’t make it feel any better.
@jwbjpb1 of course he was, he was in it. He had a company that got bailed out in this.
I like that you did kind of gloss over the idea of where pension funds are invested, but it would be great if there was more light shed on that since, for example, Sweden's biggest pension fund was hit by the failure of both Silicon Valley Bank and Signature Bank.
Pension losses will be the last to discuss. Various U.S. state pensions were liquidated by this SVB failure to manage investments.
Iowa Public Employees Retirement Fund does their own investing and does very well.
Retired Iowa public school librarian
@@veramae4098 May your days be forever filled with joy. The path you retired from never gets any recognition for your deeply societally important skillset. Thank you for your service! [My mother was a high school English teacher in the 60s and 70s in Iowa.]
THE BIG LOAN SHELL GAME
@@juliehenderson1672 CASH IS NOT INVISIBLE HOT TRASH!
Very Educational. Great work Jon... and both guests were great too. Again, we can see that people can disagree without getting angry. I can't say I agree with any form of bank bailout since we saw what they did with it the last time. They don't pass the bailout option to mortgages and other loans, not that that would necessarily have been a good thing either. I am no banking expert, so I am sure it is far more complicated than what I can understand. But we see constantly how government regulations seem to only benefit those in the government circles... and doesn't seem to matter much which party is in control. To quote one of my favorite Daily Shows with Jon Stewart, this situation "was brought to us today by the letters F and U" . 😀
Being in the Boston Biotech world it was particularly interesting. A lot of the VC money that companies raised was put into SVB. So much so that there were people on Friday who didn't get paid and weren't sure WHEN they would get paid or if they would end up furloughed. Then came questions on whether this could lead to a collapse of a number of start up biotechs would would have essentially lost all the access to their money. Boston's economy in no small part REVOLVES around pharma/biotech/start ups (for better or worse). The thought that the bubble could burst and the cascading effect it could have (rent, mortgages, commercial real estate, law firms, all that makes up a city etc) definitely gave me pause. That being said the bank executives who yanked their own rug can pound sand.
Thanks Jon. This was definitely a convo in my house. Very very informative.
What about Government banks that will use the money for federal deficits? Tax the rich!!
What are you even talking about? What are "government banks" and how will they use *what* money to so something ( what? ) relating to the deficit?
Mark Cuban is the billionaire I respect the most, which means slightly more than dirt.
I am soooo glad Jon is doing this ! Thanks Jon !
If Vanguard et al invested in SVB to invest in long-term mortgage-backed securities without telling anyone they were investing in long-term mortgage-backed securities to make their portfolio look more diverse, would that be kind of shady 🤔 We didn’t invest in bonds, we invested in a bank invested in bonds 💁🏻♂️
I love Jon. He totally gets it.
I think the whole world could really benefit from a Jon Stewart presidency of the US. Please make this happen. 😊
So he would just let his buddy Mark Cuban make the rules? The scumbag just let his buddy come on and argue why the FDIC needs to cover his $8Milllion in SVB and you want him for president? Gtfoh!
I've been saying this for years!! Jon Stewart for president!!
I'm an Independent Latino. Thank you Jon for being Transparent!! Breaking Points brought me here.
I just joined Apple TV because of Jon Stewart. What does it say about our society when the best news anchor on TV is a comedian.
It says that a persons career tells you nothing of their character.
In the same way that it makes us unsafe to assume a person is good or benevolent just because they’re a peace officer;
It does us all a grave disservice to assume a comedian can’t speak earnestly, or that a journalists should be the most competent in the attempt.
Exactly on pay for more FDIC insurance. Not sure about individual or small business exceptions.
"Privatizing profits, socializing losses"
Couldn't have said it better than that. Ffing depressing...
Excellent breakdown 🔥 Jon Stewart is the man.
We need Jon to run for President...
We need more common sensed and back boned citizens in congress.
Speak for yourself.
@@AINT112 Do you prefer Biden?
@IrocZIV Currently, I see no one that fits the bill, but this entertainer is nowhere near what I think is needed for a leader.
@@AINT112 What kind of leader do you think we need?
That was a great discussion. Thank you Jon, Mark Cuban and Sheila Bair.
Mark had his money is SVB. No wonder he wants a bail out and refuses to call it that.
But he’s a rich person on tv! That gives him credibility!
Eat the rich
And Mark blame Fed and regulators but hey he wants all the bailout from Fed and blames everything on regulators and Fed
Privatise profits, socialise the losses.
Love to hear people that KNOW what they are talking about. Thanks!
This is so good, you should do it more often. Sort of like a daily show, or something.
Wow. That's a great idea. And we could have it on one of the newer networks, with a younger demographic. Like Comedy Central or something like that.
Wow, I sure wish there were some kind of Glass-Stiegel legislation around that separates investment banks from regular banks.
That was a suspenseful pod cast. 🤣
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?.
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...
@@marcorocci-ct7kw I think it's brilliant to use a brokerage advisor for investing. Prior to speaking with an advisor in the heat of the 2008 financial crisis, I was actually experiencing terrifying nightmares. In summary, with the assistance of my advisor, I have grown my initial $120k investment to over $550k...
@@ConradGosling -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??
@@geraldantonio3160 -Credits to STACIE KRISTAL WEBER, one of the best portfolio managers out there. she’s well known, you should look her up...
@@ConradGosling Thank you for this tip. it was easy to find your coach. Did my due diligence on her before engaging her services. She seems proficient considering her résumé...
So authorities are left with the responsibility while stripped of their authority.
Smells like corp welfare
Jon, could you not find a single guest somewhere to the left of Nixon to speak on this issue? Wealth begets wealth protects wealth..
Great discussion. Just the facts! Love it. Everyone keeping everyone honest.
Awesome show! Jon, you are the best.
Thank god we have Jon Stewart to bring on voiceless folks like Mark Cuban, a poor billionaire who was harmed by this SVB fiasco to the tune of some $8million. How would we ever know about his struggles withoit this fluff piece?
Mark dropping at the most comedic moment is hilarious
I really enjoyed this conversation and effort to share perspectives of the big companies, the investors, the regulators and the small guys.
Thank you, Jon!!
Until we hold the CEO’s and board of directors financially or criminally responsible for banks and businesses that fail on purpose we won’t change anything. Bring back the regulations we had from the 30’s to the 80’s.
Mark Cuban was talking some silliness about sytemic risk, to be honest. Also worrying about the shareholders - they invested at their own risk, including the risk that the bank goes belly up!
No bailouts for the GME investors when Robinhood took away the buy button.
And those who invest uninsured amounts of money also invested at their own risk but they got bailed out.
So the man or woman with a retirement account that had a bank in it's portfolio gets fucked but the startup tech/crypto company gets it's millions back? Lol
Always an eye opener, thanks for your take.
John Stewart for President, the smartest and most logical person I've ever heard
One in a billion thing? Wtf? Did he mean two every 15 years?
Great podcast. One question I wish got answered was, with central banks worldwide now gearing up to backstop the banks from failing, what are the long term effects of such actions? Human nature predicts that such backstops will only serve to embolden more reckless actions by banks so what exactly is the penalty on the leadership of Credit Suisse, SVB and like, so that banks don't assume backstops come with no repercussions?
Thank you, Jon.
Dear John Stewart,
In the tapestry of our nation's journey, your steadfast dedication to truth, compassion, and unity shines like a beacon, illuminating countless lives, my own included. As we navigate the labyrinth of our collective destiny, I beseech you to ponder the esteemed mantle of President of the United States-your unrivaled acumen in dismantling deception, demystifying complexity, and captivating diverse hearts through wit and humor is nothing short of a symphony.
Your unwavering commitment to social justice and your resolute advocacy for marginalized communities reveal your resplendent character. As President, you would embody the crescendo of hope, inspiring millions of Americans to march towards a brighter, more harmonious future. I entreat you to give this audacious proposition the gravity and contemplation it so richly merits.
With profound admiration,
Ryan Chapman
Jon you never cease to amaze. Another stellar panel and interesting discussion. I wish you were on CNN primetime. LOL - I'm sure you don't wish that but we need you to get more exposure DAILY !!!
Don't worry! Way more people watch here and it's also the demo who statically will have to face the music
@@carlosrincones5560 Ironically, right after I posted that comment I'm seeing him being INTERVIEWED on various mainstream media shows - Hooray!
Thank goodness my $300 will be safe
This was an amazing talk!
Banks being publicly traded. Uninsured deposits. Stock prices. Stock buybacks.
What could ever possibly be wrong?
Thanks Jon, Sheila and Mark. Your clarity, good sense of humor and moral integrity are deeply appreciated. I walk away from this conversation feeling richer.
Pretty ballsy move from Cuban, making an Ayn Rand joke when he literally has a $130M mega Yacht named The Fountain Head
Mark Cuban experienced a Forest Gump moment, "That's all I got to say about that."
I love Mark Cuban. He backs his points with honest views. I can respect him even when I disagree with him, but it's a worthy discussion.
I have been saying the same exact thing since 2008 even though I am not an economist
If the government would save the economic collapse by bailing out the banks who went under when mortgage crisis happened ( which was completely their fault anyways) why not give the money to people who couldn’t pay their mortgages so they can pay to banks so banks take their money and people keep their houses
It was not supposed to happen anyways but if this anomaly happened why not save the banks through saving regular people ? Money would go to the banks anyways but through people who lost everything
If it helps the average citizens the elites squash it for pretending helping the wealthy is the same as helping the poor instead of just helping the poor in need.
If the airline industry was run the same way, the govt would spend a fortune to rescue first class passengers before the plane crashes with economy class receiving nice words at their funeral.
Transportation is in fact run the same way. The federal government spends billions to support the airline industry which is the first class of transportation and the victims of the train bomb in Ohio are not even getting kind words. The president could have given everyone impacted by the bomb train Medicare for life under the ACA. Liberty Montana got it from Obama. It took one weekend for the government to save the wealthy depositors. If the citizens of Ohio was an equal priority to the government they would have gotten Medicare for life under the ACA just as fast. It would only require Biden follow Obama and sign the order.
LOL I’m so sad because I think you’re right, and it’s so depressing that I have to laugh or I’d go insane
Mark Cuban is THE Tech Bro.
I learned an enormous amount from this.
While Mark Cuban is flying above the podcast, I am watching from a subterranean toilet. I wish I had made better decisions.
Cuban sure does love to talk in circles to make it sound like he has a legit point!
Good job for respectful and challenging debate
John - "the only ones who carry risk are the small depositors and small businesses" - correct !
It’s good of Mark Cuban to let Jon put him in uncomfortable situations, especially when he need never be in them. I respect that.
With changes in the economy leading to instability in the stock market, some individuals may face a decrease in their investments in an effort to benefit from the current market conditions, I am considering liquidating my $725k portfolio consisting of bonds and stocks. Someone else in the same situation? Please tell me in the comments!..
would suggest you thoroughly evaluate the companies you have invested in and their estimated future performance, as we may expect to see the market decline further. To minimize stress and improve efficiency, it might be wise to seek the assistance of an investment advisor to help restructure your portfolio and identify any underperforming investments to offset. This approach has been successful for me and has reduced my stress levels.
@@MajorCockbern I have been exploring the possibility of utilizing advisors to help navigate the stock market during these uncertain times. However, I am still evaluating their potential effectiveness in providing the support I need.
@@daviemanuel688 Christy Vallen D'souza is an esteemed coach known for her proficiency in her area of expertise. You probably might have come across her. I found her on a CNBC interview where she was featured and i reached out to her afterwards. She has since provided entry and exit points on the securities I focus on. You can carry out a quick internet research on her name for more info. I basically follow her market moves and haven’t regretted doing so...
@@MajorCockbern I was considering changing my investment strategy and planning to sell certain positions. As my retirement is coming soon,I became increasingly stressed. After thoroughly researching Christy Vallen D'souza on internet, I concluded that I had made an informed decision. Thank you for this Pointer. She seems very proficient and flexible. I booked a call session with her too.
I would hedge certain positions, for example the dividend paying stocks utilizing options via covered calls or put options. I would also hedge using ETFs in certain sectors ala gold such as GLD, GDX, BAR, SGOL, etc. Or defensive sectors such as healthcare, utilities, consumer staples there's an ETF for any of those. Also ETFs SPXS which provides 3x inverse exposure to a market-cap-weighted index of 500 of the largest & most liquid U.S companies. And if you still a skeptic with banks FAZ is and ETF the has inverse exposure to short the banking sectors . There's various strategies you can apply but you gotta pay attention to what the fed is planning.
👏👏👏 no one says it better than Jon
Love the rational arguments of Jon Stewart !
Trusting a bank with your money now is like trusting an alcoholic to say 'I'll just have the one.'
Trusting the banking system is like trusting Stevie Wonder to teach drivers Ed.
Speak for your own country, Yank. Many other countries don't have your banking problem because they're sensibly regulated.
The American Economy is like a rodeo where the audience (J.Q.Public) always gets trampled by the bull whenever a rider (Lehman Bros / SVB etc) screws up
GOP can't run government only steal from it. Their administrations are always full of depression and fraud.
Bring back bank regulations for all banks who do business here.
WTF?!? HORRIBLE analogy of that problem and the banking industry. I agree, small money people loose, but the "audience" are protected with railing and the rodeo clowns are the one who usually suffer the consequences, if we're speaking rodeo.
News says Mark Cuban has an $8M - $10M exposure at SVB. Was that disclosed in this conversation? I didn't hear it, but might have missed it. Very important to make his conflict of interest clear!
I’m always impressed when hosts of Tv shows or podcasts who speak the truth. And Jon Stewart never disappoints. It is definitely the truth that the VC big wigs in Silicon Valley pulled the rugs underneath SVB. They collectively as a community and selfishly as individuals spread the fear and caused the runs. For SVB with assets of over $200B, the loss from sale of the low interest M-B-S and long term T-Bonds of $2B shouldn’t have pushed them into bankruptcy. While it was bad that the interest rate risk wasn’t managed, the underlying asset of those securities were sound and different than the sub-prime mortgage that really represented poor quality of assets.
That was super good. Mark Cuban is a riot, “next to their copy of atlas shrugged” and loved Sheila Blair’s clarity and understanding.
Mark Cuban made every excuse he could to defend greedy bankers then made one crappy joke and that's all you got from the conversation 🤨
@@highlander7462 Cuban was just trying to point out a fact that most people are missing: the shareholders in SVB lost their entire investment. That was my takeaway. It's important to include that fact in the discussion. I don't love bankers or VCs, but I do want a clear understanding of the entire situation, as much as I can anyway.