Banks Are Collapsing... Here's Why
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- čas přidán 12. 03. 2023
- What now. And what's next?
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This video is an opinion and in no way should be construed as statements of fact. Scams, bad business opportunities, and fake gurus are subjective terms that mean different things to different people. I think someone who promises $100K/month for an upfront fee of $2K is a scam. Others would call it a Napoleon Hill pitch. - Zábava
All of those CEOs and shareholders who had "insider knowledge" and pulled out before the big hit should all be held accountable.
Ooo let’s talk about it
Lol yeah right. You only get in trouble with that if your poor and use that info to get rich.
I doubt they will be
I’m sure loads of politicians did the same so no way anything happens
Rich CEOs held accountable? Lol
More importantly: Why is CoffeeZilla so good at being good at his job?
Because he cares. That alone is a rare thing, I guess.
I don’t think he’s good, it’s just everyone is so bad lol
Because he put all of his time and research into this...
Because he actually lives in the 10 Millon dollar house and is from the future
He is probably from the future. That is the only reasonable explanation.
Less than a week ago, Forbes named it as the best bank in America. Jim Cramer's success demonstrates that confidence is often more valuable than accuracy. If you were attentive during the financial crises of 2007 and 2008, you're likely aware of Cramer's past performance. If you still chose to follow his advice, it's difficult to offer any justification. In fairness, he was just one of many investment experts who encouraged the economy's growth until it collapsed.
It's truly astonishing how many CEOs and executives are able to sell off their shares, options, or tokens just before their company collapses, and manage to avoid any legal repercussions.
@@romiverajr so don’t listen to him because he’s Jewish ? Tf u saying
Get woke go broke!
@@romiverajr Lmfao why bring up Jewishness?
no such thing as important or right or confix or etc, cepuxuax, infix confix etc any nmw
The explanation was spot on
Wow
website is good
Very nice
👍
Nice
Jim Cramer is proof that being confident is more important than being right.
Cramer shorts his own picks.
thats why theres an inverse cramer movement haha
Always follow the opposite of his advice
hell yes.
I do 2 ❤
You should start a follow up series blasting these CEOs the same way you do any other scammer. It's time to move on from lowlife CZcams scams to the big dogs. You have the worlds attention right now, don't let your opportunity pass you by to make a real impact on a scale no one saw coming
He would end up suicided...everybody knows this
This!
Yes but that’s the way you disappear one day or have an… accident
@@whosaidthat5236 Yeah to think they wouldnt get him killed is crazy. Always avoid small aircraft and hot tubs after outing the big dogs.
@@whosaidthat5236 Said it right.
I just realized that Coffee's audience retention rate is fucking nuts. Like, having 2.7 million subscribers (as per this comment) is already insane, but having almost EVERY SINGLE VIDEO have that amount (or even more) of views is astounding. Speaks volumes of the quality of the content provided that pretty much everyone subscribed is willing to watch most videos (sometimes multiple times). Simply insane.
Damn just noticed
Being that so, just like 2008 they only tell half a story. What they left out of the 2008 crisis is that it was caused by government. Clinton repealed Glass Steagal and Bush had his American dream, there is your 2008 crisis. Similarly what isn't said here is the governments did the lockdowns, the lockdowns destroyed the supply chains, this is causing the inflation. Central banks react on it by raising rates a la Keynes... doesn't work cause the inflation is NOT a speculative boom. The rising rates destroys all the government bonds that the central banks put out since 2010 as QE bullshit. You see smaller banks go now, but as long as central banks raise rates to combat inflation, you will see this everywhere, bigger banks are gonna collapse, pension funds, and central banks balance sheets are gonna blow up.
Just a year or so ago he had about a million subs, damn our boy grows fast
Quality over quantity, unsubscribing lol
To me Coffee and a few others are like the modern version of a breaking news headline. I gotta drop everything and see what’s going on
The mining machines on solar cloud farm mining are booming wow
Coffeezilla is interested in exposing scams, so surely he will expose solar cloud farm mining
ok
I don't even know what this mean
wat
chatgpt promt be like
I never cease to be amazed at all these CEO's and Executives who manage to cash in and sell off their shares/options/tokens right before their company implodes ... and never spend a day in prison.
*typo
when the people making the laws do the exact same thing or worse, it's not a surprise
It is completely normal and expected now. Meme makers were too slow to make proper memes about this crisis before the 'we are not doing bailouts' -> 'ok we are doing bailouts' moment came. Nobody said. 'I called it' as it's like calling when the bus arrives at the stop. So mundane already.
Didn't these guys also give themselves million dollar 'performance bonuses' just before the company imploded?
You'd probably also never case that's illegal and nobody does that without going to prison lol.
There's a difference between being able to read the writing on the walls, being the one that did the writing. and it sucks that being the one that supplied the ink is the one that suffers most
Honestly, there should be a law that all money made from selling a company's stocks within 1year of bankruptcy or insolvency is seized from all board members and previous board members. Whereas the duration can be extended up to 5 years pending judicial review and investigation. The captain goes down with the ship not floating away on a private life yacht leaving the passengers aboard.
Agreeed
@@user-xl7ns4zt6zthe land of the -FREE- rich" doesnt sound like a pleasant idea either..
It seems like insider trading prohibitions should cover relevant situations; if not, then those laws may need reinforcement. In the absence of inside information, a board member selling stock is not doing anything wrong and should not be punished.
@ラテちゃん some of that needs restraining when the rich come to mind it seems. This keeps happening, clearly them not being regulated in this aspect isn't working.
I bet you believe in the tooth fairy also 🧚♀️
Man I just love CEOs that just happen to cash out right before everything crashes. Wanting less regulation while demanding a government bailout is the cherry on top.
Coffeezilla, Please can you tell us how to set up our account on solar cloud farm mining
i made so much bitcoins with them wow
i think people are no longer holding anymore
@@chunkowunko8066 yes me too
He is interested in exposing scams, so surely he will expose solar cloud farm mining
Those CEOs should have criminal charges against them
Should, but if you bring up statistics, you'll get labelled an anti semite.
As should those of 2008
one of the top executives of SVB was also a top exec at Lehman in 08. The only thing that this guy should touch in a bank is a broom
It will never happen so you can say this comment as much time as you want. Nothing will ever happen.
you are correct but the world is full of evil, they will continue to issue loans to all kinds of bogus and woke causes, incredible how stupid they are in their evil failure.
Literally need Coffee to just start explaining Economic terms and ideas. I would absolutely watch.
Yes!! "I'm Coffeezilla, and this... is my Masterclass."
Investopedia is a good place to reference terms and concepts from finance and economics. Have a great day.
@@alinamedina no you not
@@GwainSagaFanChannel its a reference to the Masterclass ads. They're not saying they're actually Coffee
@@RoyOrbisonsElvisTape yeah, but it's not coffee telling me lol
Every time someone tries to justify a CEO's pay - just remember that these CEOs consistently run companies into the ground and regular people get hurt while they remain millionaires.
When they're not destroying companies, they're breaking the law but not getting any jail time.
They're no better at running a company than anyone else.
It's a long con and we're all the marks.
But they are much better at getting put in charge of companies!
So a CEO should get paid as much as any normal worker 🤣 you better be taking that 2k paycheck when you become CEO
@@laylaminrir Why do you jump to all or nothing. Couldn't the CEO just make like 3x more than the average worker rather than 300-1000x more as is currently the case? Many CEOs are making more money in a year than entire neighborhoods of people make in their entire lifetimes.
Yup Adam Aaron of AMC I'd a perfect example of this
Just like heaux,they get paid to leave 😂
I'd totally be ok with Coffee bringing us like a weekly roundup of the most important news from around the world
I second that
Second
It’s a great idea.. but until he gets a larger team, more content will only reduce the quality over time
+1
We already do! Lol
The way I clicked on this video knowing coffee’s coverage is going to be better than most of the media reporting on this..
Mm, he is usually good. Patrick Boyle is also a bit of a deep cut.
Patrick Boyle probably has the best breakdown. Articles from media sources are usually written by people who are journalists and know very little about the banking system.
Had no clue this was happening.
100% on the same page. Keep it up with the amazing job, Coffee!!!
@@IndexInvestingWithColegood to know!
Thanks Coffee. I swear I learned all these things extensively in uni, even wrote good papers about it all but I forgot a lot of it. Your video is such a good reminder!
Great coverage. Thank you!
Corporations when hundreds of thousands of people are laid off in a week: "We have to let the market correct itself, propping things up will make it worse"
Corporations when they bankrupt themselves: "Daddy we made a oopsie, can we pwease have a baiwowt uwu"
That’s why a totally free market wouldn’t actually work. The corporations have to be responsible to the government, not the other way around.
We need regulatory agencies with actual muscle.
@@warlordofbritannia Exactly, and another reason it wouldn't work is that slavery is always cheaper than fair labor and if you aren't competing at the highest level you will be eaten by a company that is willing to do it. That's why Nestle is raking it in and buying another brand every day. They use slavery and subvert laws and steal drinking water and all of these things so that they can compete on the lowest prices.
@@warlordofbritanniaunfortunately half the country is like “regulations bad, why are we punishing the rich?!?” 😂
@@warlordofbritannia You'd think in a *free* market, it would be *free* of intervention. Isn't that the point? In capitalism, aren't corporations that fail, meant to be *allowed* to fail, since it's their own doing?
@@lasthope301
It’s amazing how many folk complain about the rich exerting disproportionate power and influence yet buck at actually following up on this observation and oppose the weakest measures to fix it.
Good job with this, I'd like to add a point that they could have avoided this if they had done due diligence back when the FED started raising rates a year ago. Plenty of people divested and reinvested when the FED started raising rates and didn't end up having so many assets in long term treasuries. Somebody was asleep at the wheel in that bank.
Yep. We barely avoided another 2008 because banks aren’t paying attention.
Allegedly their risk management officer was busy with DEI initiatives as her collateral duties. This was fundamentally a failure of risk management and she seemed to be engaged in unrelated activities which may have distracted her or be an indicator that the senior leadership did not consider risk management to be important enough to require full attention.
I will say that other companies such as real estate developers in my area have definitely been re-evaluating because of higher interest rates.
@@warlordofbritannia Banks aren’t paying attention to the governments mistakes so that makes them the bad ones. Ok.
Yes. This right here. Criminally inept management IMO.
@@Lawofimprobability Did you get this from any credible source or just from DeSantis?
love the editing on these videos!
Love the video layout and the change in angle recording constantly. Great content man. Appreciate the coverage
Yet again he's at it. Educating the large mass. Thank you my man
.
That’s an interesting way to phrase that
Reporting the news
Do a bit more research into Fractional Reserve Banking .. NO THEY DON'T HAVE THE MONEY 🤑
Did you send your mom this video ?
As Moffett on Money says, "Stupid should hurt". We have gotten so far away from this principle that the people making the most damaging decisions no longer have any concern about consequences.
Because when the industry says that, they're talking about the individual investor or 401k holder. They're not talking about themselves.
Fuck, we reward stupidity with millions of dollars these days.
The problem with "stupid should hurt" is that it will never hurt the stupid people. Any wealthy people who took a loss from SVB's collapse would just use their wealth to pass that "hurt" along to the economy as a whole. They'd raise prices, cut staff, or whatever. They'd still make out OK while the economy as a whole goes down.
The problem is deeper than this: people this wealthy have enough wealth to make it out OK *regardless* of what happens. The importance of the SVB bailout is not what the ultra-rich get out of it; it's what the smaller sized companies get out of it.
Those companies weren't stupid. They weren't doing something risky by having assets with SVB. They just needed a bank to store assets in, and SVB seemed reasonable enough. The bailout allows them to continue to make payroll and function as companies. Therefore, they and their employees continue to work. We're talking about thousands of companies here.
Stupid *should* hurt. But so long as we have a class of ultra-wealthy stupid people who have enough wealth to pass any serious hurt on to everybody else, that's not a functional option.
It's called Moral Hazard. You want to know why this happened go watch Frontline, they just covered this but much better (at the expense of much longer)
@@kingsrevenge9234 Bad idea.
Really appreciate the coverage of moments like this and with simple and concise language
You were clipped in a Food Theory video!!! Love seeing some of my favorite creators being referenced by eachother
Once again we fail to learn the lesson that "too big to fail" means too big to exist!! When oligarchs insist that all profits be private, but all losses be public, the system is GOING to collapse.
Almost like we need some kind of decentralized, non-hyperinflationary currency system or something
@@slomnim Crypto currency does nothing to counter duration risks. Also we are nowhere near hyper inflation.
@@slomnim What a stupid idiot comment that has nothing to do with anything lol.
@@slomnim
That’s the opposite of a solution. The whole problem right now is a *lack* of federal oversight and regulation. Letting the banks act even more recklessly would just make everything worse lmao
@@slomnim Crypto is not a solution, its a way to get in on the fleecing.
Coffeezilla has his way to covering stories. It’s like he’s explaining to a five-year-old. I don’t think we’ve seen anyone so good at investigating and telling financial stories on CZcams. Great job as always!
It's because he actually cares
And I think he has a degree in engineering. Dude is just smart.
Great, because I have the attention span of a 5 year old.
“Imagine you own a lemonade stand…”
@@mph5896 that doesn’t mean it short actually. My son could focus longer than average TikTok users when he was 5.
Great explanation. Thank you!
Loved the explanation my guy.
One of the things that really kicked off the great depression was when mass panic set in and everyone withdrew their savings and emptied their accounts.
This. While it sucks that the criminal behavior of the fat cats running these places is essentially being rewarded I can see why the govt stepped in. If they would have just sat back and done nothing a run would have started.
Would it have been big enough to cause another true depression?
Should they have let it happen regardless?
Questions to ponder.
@@wtfserpico well, during 2020 I worked at Walmart at the time. After getting stepped on over toilet paper. I full heartily believe that a mass panic would have happened. Gave it 4 more days and it would snowballed from a trend on social media of gen Z pulling out all their money and flashing it on their social pages then to your grandma seeing the Gen Z bunch on the local news and then runs to her local bank to withdraw.
Rick Grimes would wake up in the hospital the next day to a dead society.
@@aerystargaryenii2565 I can't argue with that. You'd hope people would have level heads, but as you pointed out that doesn't actually tend to be the case.
@@wtfserpico no people are animals
@@wtfserpico Most people are walking idiots.
Literally had my pay at work get delayed because their payroll went through the Silicon Valley Bank. Definitely going to check this out to study up on what happened.
Thank you, Coffeezilla.
Helpful as always
This entire fiasco should make the average American LIVID. Silicon Valley Bank had an A rating from Moody’s 5 days ago. How does one of the top 20 banks in America go from a top tier rating to closed so swiftly? Let’s also not forget that the Chief Administrative Officer of SVB was the CFO of Lehman Brothers when they collapsed. But they don’t tell you that on the news. There’s so much more to this story Coffee… and I think you know this as well. Stay safe out there y’all❤️
Yeah but, Lehman did nothing wrong. Senator Chris Dodd put them out of business by causing a run, when he public said he didn't see how they would make it. The shares of that bank were effectively STOLEN, and practically given to a competing bank, of whose name you already know, without knowing.....Goldman Sachs. Then we let Dodd "write" the reform bill, with all his big bank donors looking over his shoulder, ensuring the "fix" put as many small banks out of business, as was humanly possible.
No bank can survive a bank run. They would all have liquidity issues turning into insolvency. That is usually accepted, until customers collectively panic and take out the money the bank is then legally obliged to give.
@@mr-boo They previously had to maintain a percentage of cash on hand, but that was removed recently.
@@mr-boo Didn't all bank have a common bank's bank to avoid this?
@@mr-boo correct
As someone who only up until recently has only maintained a highschool Econ class level of understanding of the financial system, you’ve just summed up this issue to me in perfectly plain English. Thank you as always Coffee!
Bitcoin solves this (lol no it makes it worse).
I really didn't want to start panicking as I know that makes it worse, but Google wasn't doing many favours. Then our lord and saviour drops the perfect vid right on-time. What a man
If a treasury bond now has a 5% yield instead of a 1%, doesn't it make the 5% yield *more* valuable? I don't understand
@@fluxcapacitor05 It makes new bonds purchased at that 5% yield good, but the bonds that were previously purchased at 1% yield are not retroactively increased to the new 5% number. That devalues the old bonds as they make less money than just purchasing a new bond.
@Zane Greshon calm down
I had heard about Coffeezilla but had not seen his videos. Now that I have, I quickly subscribed and watched a bunch of them. Amazing work brother keep it up.
Just found this channel and I love that it's just one big movie reference.
Also great explainer, makes a lot more sense what happened.
You are absolutely killing it on youtube Zilla
Bailouts send a signal. They say, Take as much risk as possible, because there are no consequences.
There are no consequences except the government closes your business and you have no job
POV: you don’t understand how this bailout worked, and just wanted to sound edgy
I think we need to focus more on the fact that the government had a long standing policy to insure $250k and immediately threw it out the window to protect multi millionaires that didn’t insure themselves in the first place.
The account holders were corporations - startups - not necessarily multimillionnaires. These companies had payroll in the thousands of employees.
@@phpn99 if the employees are worth anything then they will find jobs elsewhere. It’s not your responsibility to bail me out if I mismanage my finances and accept loans that my company can’t pay so why is it my responsibility to bail out failed startups
@@Jse0607 because if you don't then multiple banks start to run to their banks, jeopardizing everyone's money and their employer's money. It would come back to hurt tons of people it's not even funny that nobody ever realizes how close they are to have nothing during these financial crisis.
@@brandon-alcocer Fk that, let it all burn. This house of cards deserves to fail because its based on complete lies and manipulation. Forests need fires to clear out the undergrowth so new plants can flourish. All we are doing is crutching a BS system here. Literally over and over and over.
@brandonalcocer7682 most people don't have anything. It's the ones that have that are the problem
Interesting information about banks, I really like it! Thank you!
I knew you would make a video over this! Lol respect brotha
"If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around (these banks) will....deprive the people of all property until their children wake up homeless on the continent their fathers conquered.”
~ Thomas Jefferson
There’s a lot of missing context here-Tommy J was notoriously against the national bank and even a single national currency. He had the snobbery of the landed elite against merchants and bankers coursing through his veins; ironically, like most plantation owners he lacked liquid capital most of the time and thus was often in debt. He also borrowed heavily throughout his life.
Of course, we don't have a private banking system. We have a centralized banking system that is there because of government power. When there was no centralized bank banking in America was much healthier and banks were not so over leveraged as they are today. Today banks are often leverage 30 to 1. In the 1800s it was more like 2 or 3 to 1, making them more stable. .o0
@@ORagnar
-19th century banks
-financially stable banks
Choose one. 😂
@@warlordofbritannia Jefferson did nothing wrong
@@bloozism
As a friend of mine likes to argue, the Sally Hemmings situation wasn’t gRape-it was just kinky!
I like that you explain videos in a way that even my poorly educated highschool dropout ass can understand. Thanks coffee. Your content is always informative and appreciated
Just remember that being poorly educated isn't your fault, school systems could be teaching important stuff this way if they were properly funded and staffed.
@Middle Earthling not to mention properly structured and the curriculum reformed, it continues to be a stagnant institution in the west
Don't blame yourself about your education level. Our education system taught us mitochondria is the powerhouse of the cell but never taught us how to fill our tax forms...
If you're willing to learn, you're doing it right. At any point in life.
They say you don't truly understand something until you're able to explain it in a simple fashion.
Coffee knows his shit
And just a couple years ago, a certain president signed a bill that would lift restrictions on mid-size banks, allowing them to take on more in assets.
Best explanation yet - thanks!
I promise you in times of financial upheaval the executives and millionaires aren’t the one who are going to get stuck holding the bag. They never are.
straight facts
Yea until a real change happens and the people decide to change the nature of the bag and how we support each other in community
@@aslanpatience8278 the world has worked this way since before the Egyptians, I doubt it will change now
@@tolgayatamturk2304 there was thriving cultures who didn’t have this model but they got overtook by others who wanted them to be a part of it
What do you mean? The way I see it, we were both left holding the bag. The only difference is that the millionaire's bag is full of cash and mine is... well... empty.
It would be interesting to see what would happen if we let the free hand of the market teach bankers they aren't "too big to fail".
Any company or person with deposits larger than the FDIC insured amount would rationally remove all funds over 250k. It would immediately end in banks halting withdrawals and massive panic, if you need a similar example, the Toilet Paper shortage at the beginning of the pandemic.
That literally just happened. You're watching a video on it.
@@IndexInvestingWithCole no, they're getting bailed out
Jail time
@@fclp67 No they aren't. The bank was closed days ago at this point.
Great description of whats happening.
Great analysis. Thanks
If nothing changes I think this will happen more and more often as time goes on until the bubble pops enough that nothing is left. It's honestly crazy that we've made it this far with a system like this in place
They are playing with money that's not there's and losing big.
@@jordanmon15 money is literally fake and has no value unless the government says it does
100% agree here. We're in the biggest economic bubble in recent history
@@user-kb1hw2yq2f This has happened multiple times before and you'd think that they would learn and put systems in place to prevent something like this from happening but clearly they only care about themselves and whether they're able to cash their bag. They can make enormous profit from bubbles and when it pops they just have everyone else suffer while they're living their best life. It's almost exactly like getting in on the ground floor of a ponzi scheme. If you ask me it's a deliberate choice
The bubble is 31 trillion and growing bigger, when it pops the US drops
You explained the interest rate to bond relationship in a couple sentences in layman terms. When I see a video under 10 minutes, I know the creator is getting to the point.
@@kingsrevenge9234 No, stay in school. As long as you dont get a degree in gender studies or liberal arts.
@@Chris-Benoit69 agree. Total BS degrees.
@@kingsrevenge9234 drop out of life (with bong in hand)
Amazing video as usual. I couldn’t stop wondering what temp the coffee was brewed at?? 🔥
Novo bank is currently stealing money directly from their customers.
"What starts as a liquidity problem can become an insolvency problem." Love this wording. Awesome video
(not his wording)
@@JustinWilliams-ed2ug americans are good at that. Like when they nuke an entire village just to kill 1 guy and the rest are just "Collateral damage"
@@JustinWilliams-ed2ug That is not what a liquidity crisis is. The distinction is specifically between not having ANY assets and having assets that cannot easily be converted into cash. Tell me you do not have any assets/investments without saying you do not have any assets/investments.
I do hope the government doesn't bail them out and the private sector does it, because if the government bails banks out again they will take this risk again as they know they'll just be bailed out.
If it wouldn't, it would risk lot of other people making run on other banks, causing lot more issues. It's a preventative bailout
It's not a bailout. They are guaranteeing depositors, and that is all.
@@rtqii I'm not saying this is a bailout, I'm saying I don't want them to go further, than the expected.
@@rtqii Yeah like they made out during the GFC man? They didn't protect anyone then and bailed them out same thing will happen you watch you stupid fool
What risk are you talking about
From song: "Don't you listen to him, Dan -- he's a devil, not a man." Those scammers appear to be "human" but they are not human on the inside. Those, who have been given "second sight" easily see that they are not human on the inside.
Wait WTF, you have 2.7M subs now?! Damn man great going keep doing what you do!
I saw a report that there's a review being done of other banks now to ensure they're not overextending and creating another situation that bit these banks... It'll be interesting to see who else might get revealed to be a house of gilded cards instead of a financial powerhouse
probably all of them since the rich keep getting rid of the regulations
See Credit Suisse.
@@bmxaf oh crap... Aren't they like top 40 on the fortune 500? Man, if they folded...
@@LucienYT apparantly they are very exposed in the bond market, just as SVB were. Check me if i'm wrong but i have heard this from several sources..
@@bmxaf Did you delete your previous comment? Because it says 4 replies but only 2 are visible and im really curious about which bank is next on the chopping block :D
It is in moments like these that I realize that cutting the hands of the thief isnt as barbaric as it seems to be.
Not when you see how stores cannot even exist in democrat states because the 13% keeps walking out completely loaded with merchandise? You illiterate commies and your selective rage.
I find it funny that crises like these turns Americans into basically Sharia law Muslims.
@@kutlumzrak2689 He’s not being literal.
@@Chunguskhan666 Huh? Not Literal ???? Gimme a break
@@Chunguskhan666 He might as well be.
This is one of those cases where intent speak much louder than action itself, since taking the action is in itself a massive crime.
But the intent....
That speaks volumes about the barbarity of supposedly... civilized people.
As a CIB banker myself, I can tell your explanation was spot on
Nice vlog! Great presentation with cogent analysis. I am a new subscriber to your channel.
Australia's financial governing body demanded proof from all the major banks to ensure they were financially solvent. Countries are taking this very seriously.
its bc australia cares about folks unlike the US you can see this clearly if u paid attention during covid. trump was activley trying to murder folks while australia was keeping folks safe with there camps and vaccine polices *sigh* i wish i lived in australia
The US does this as well but it depends on what kind of bank it is on how good the inspections are.
@@muddobber6863 actually that just isn't true. Remeber Lehman brothers?
All western governments do this.
Pro Tip: It never works
@@EyeOfThePhi All these sorts of regulations started because of that.
Every time I hear news about the financial system, banks, bailouts etc I just think about, how could anyone even look at all of this and not go "hey anyone remember where the pitchforks are at? I need to borrow a few." Like how does one rationalize it in their own head that this system is working just fine don't worry about it
Someone should just open a small popup shop in front of their HQ selling pitchforks. 😂
Why do you think the left wants to ban guns? To save the children or to enslave you with impunity?
@@TOMiX1024 And torches.
but this time, everything is working just as intended? bank makes bad choices, baaam bank goes out of business. where's the problem?
Sure. I'd invest in the pitchfork and tiki torch pop up. However the tiki torches are already allocated to the proud boys.
From what I understand, initially SVB was NOT going to get a bailout(They are considered only a mid-sized bank), but somewhere in the Fed someone pointed out how SVB's run could cascade to the larger banks that do have the protection, that's when the Fed decided to step in.
genuinely a very good instructional video
Accursed banks *shakes fists* if only there were a company to help me unbank myself lmao
Finally, someone who explained the mechanism of losses on the bonds. Thank you! I was trying to understand why the higher interest rates created losses. Because the bonds value was locked at the time of buying.
Try jake broe did great job first.
He is just repeating everyone else TBH
In case you are wondering, a 10 year bond bought in 2021 when the yield was 1% is worth 20% less now that the yield is 4%. Yikes. If you keep it until maturity it doesn't matter, you get your money back plus 1% a year. But if you are forced to sell now, your buyer wants 4%, not 1%, so you have to sell it at a lower price. You are forced to sell at a loss. 20% loss on the "safest" investment possible out there is ... crazy.
@@kingsrevenge9234 yeah.
It’s a very “safe” instrument if held to maturity. Clearly the money managers at svb never imagined or assigned a low risk to a world where rates would increase at an unprecedented pace and reputation damage would force their hand at the worst possible time.
What's the temperature on that coffee? It's been steaming the entire video :) Love your studio, love the video even more!
Personally speaking my main curiosity is why a wide amount of people started withdrawing their money from the bank with such a rush in the first place. Since that’s pretty much the original “why” carrying all the subsequent consequences
Catch 22 of these banks + digital banking / digital comms.
If they don't offer a PR on their albeit super safe yet upside down LT investments and someone does the dd or catches wind and announces, everyone thinks it's shady and auto pulls out. If they do offer PR stating their immediate issue, they out themselves.
Kinda like "do your parents know your gay?" Question
To try and simplify it: Speed of modern communication / the internet / social media. Some people caught wind of SVB's unrealized loss amounts because of their assets locked in long term contracts. Those people pulled their money out and told their friends, who told their friends, who told their friends, etc. If I recall correctly, the bank lost, on average ~$1 million per second over the two days
You got ALMOST everything right. FDIC insures up to $250k per titling per bank. Let's say you have a trust with 3 beneficiaries. Any accounts in that trust are insured up to $1 million total. If you have a checking and savings account just in your name they are insured to $250k. If you add a beneficiary or another signer it jumps to $500k. Do both and it becomes $750k.
That's the first time I had heard that explanation. Thanks.
Yes but in this case the FDIC will guarantee all deposits, unlimited
@@miraculixxs I was referring to normal.
@@miraculixxs😂
At last, an educated comment vs emotions 🙏
I'm legit impressed Jim Cramer has managed to keep Mad Money on the airwaves.
pretty sure he's a scapegoat.
Buddies went all NAKED writing calls, and they needed him to create a panic dump.
or
Buddies all bought puts, and wanted him to create a panic so they could cash out lotteries.
I would say the first is more likely... because if the company goes bankrupt, then the puts become worthless because the underlying securities no longer exist.
Have they just forgotten he's there? Like HR lost his records years ago and nobody actually knows he's still putting out shows every day, they think his studio is a janitors closet or something? 🤔
he hasnt.
He’s an entertainer
As long as dumb people keep listening to his advice and watching his show he will be. There's a lot of amateur "stock investors" that are willing to have their money taken.
Yano i dont even understand half of the things you talk about coffee but honestly its amazing to watch you destroy people that would never have got any recognition ( the real people who deserve tobe destroyed)
Bro this was fire!
On episode 1537 of No Agenda, Adam Curry recounted his experience with Silicon Valley Bank and venture capital funds when he launched PodShow/Mevio. It was written into the contract that your bank would be Silicon Valley Bank to facilitate the ease of funding and moving funds around. He referred to it as an incestuous relationship between the bank, venture capital funds and the start ups.
I heard that some depositors believed their money was actually invested in Blackrock or something per SVB telling them they would invest into safe companies such as the previously named. But when depositers called BR to check up, BR told them that SVB still had their money bc they kept their name on the assets/bonds/or whatever.
Lmao. Did this make any sense? Have you heard this too if so? And if it doesn't make sense, I won't be offended. I'm trying to wrap my head around all the moving parts here
I'm kind of a dummy when it comes to the intricacies of these large financial institutions. Ngl.
Like #33 👍 ITM
well they were woke so incest is the name of the game there
In the morning!
I really think the interest rate is a key item that’s under reported. Had interest rates not raised, and so quickly as a result of the historic spending; that bank would still be in business.
Regardless of interest rates, had the bank run not happened, the bank would still be in business. The bank was operating, its money was just locked up in assets. It only had to realize a loss because it was forced to sell to try and meet depositor outflow.
You didn't mention why there was a bank run, you didn't explain the cause, only the symptoms. Like in the great depression, the federal reserve "pulled the loans" by increasing the interest rate on loans causing banks to collapse and become insolvent.
They want to be *too big to fail* and *too small to be regulated* at the same time
“Too big to fail” is the bull shit that helped make the rescission worse
Coffee living on the trending page these days!
Any time you hear a finance nerd say "it's not that simple, this isn't a normal situation" it actually is that simple, the financial industry has created intricate financial instruments to obfuscate the fact that it's exactly what it looks like, a scam.
Funny enough, "this isn't what it looks like" is also a common excuse among people who get caught cheating in a relationship.
@@jordanwhite352 lmfao I love that comparison
Are you saying all financial products are a scam? I’m confused what your comment is saying.
This is true, the bank has gambled with peoples money and lost their bet. Instead of losing out with all their customers, they got their own money back and ran.
@@margaretwilson8736 in short: Legitimate financial instruments can be used in illegitimate ways, Bitcoin or Banking isn't inherently a scam but it can become one and when it does don't let a finance nerd try to explain it away with big words that ultimately are just marketing BS
Those banks wanting it both ways reminds me of Big Tech wanting to be a platform AND a publisher
The problem is that people don't think these banks are risky because they all know they are going to get bailed out by the government. And we justify it by saying the government regulates them so they aren't risky. But then they regulate it by doing stupid things like saying government bonds can count towards liquidity requirements (as if there wasn't a conflict of interest there). And then when the fed raised interest rates which devalue the bonds, we all just accept it like chumps instead of recognizing government regulation had its hand in every aspect of this failure.
this is a really good sumary. kept it short.
No, this is a really bad summary. It's a very poorly researched video.
@@Nosferazool prove it, nerd
So glad you’re talking about this from a working class perspective. It’s insane how many workers I see defending yet another helping hand to the elite. These same people piss and moan when we talk about student debt forgiveness.
Nevertheless I hope you personally find a way to deal with your debt, you probably were to young to understand what you got yourself into
Understood but what do you plan on doing to secure your retirement?
Are you just going to play the working class role and never invest??
Yeah some people just love licking the boot
Student debt forgiveness doesn’t really make much sense tbh, I don’t see too much economic benefit from that
Really doesn't those clowns realize that the money to save the big guys come from all of our pockets?
Jim Cramer sounds like he was up crying all night during his show after the SVB failure.
Yes
Honestly, I've always sorta' wondered how he hasn't been investigated or how shows like his even exist. Oops, I think I accidently answered my own questions.
😅🤣🤣🤣🤣
Honestly, yea it’s not a good look but the dudes whole job is to predict the markets…not gonna be right all the time… yea it is suspect that he was pushing SVB and Signiture, that’s definantly sus. but still
@@sleaf8356 Any trustworthy person managing other people's money, doesn't try to predict, or "time" the market like this. Run away from that person, and take your money with you.
what's worse is that the promised money will be printed and inflation will go higher
Excellent breakdown.
A point that was alluded to but not outright stated: All Bailouts during the GFC were repaid in Full, WITH INTEREST
This is exactly why you are doing so well Coffee! Because the world needs an unbiased, informative perspective on things like this because people like Cramer aren't capable of doing it.
No such thing as unbiased. Not possible
@@conors4430 No such thing as no such thing.
@@conors4430 you had to be that one guy today hey Conor?
well explained great video
You're a fucking hero to the working class by providing extensive knowledge on fraud. Thank you. This made so much sense from you.
Jim cramer is the same as sports analysts. It does not matter if you are right or what do you base your opinions on.
You just need to sound confident and/or be entertaining.
Keep people engaged, even if they just care about how dumb you are, if they find you entertaining, they will listen/watch you
And this is exactly why I chose to convert all my cash into monopoly money and store it under my bed.
So you just kept in USD then right?
I've just been investing in eggs - their value is only going up, so I'm never going to use them
@@talonthehand just be sure not to put them in one basket.
You may want to consider silver and gold instead of the fiat monopoly money.
@@makosandburger8668 Both silver and gold are actually a terrible investment, both have become less valuable over the years.
From experience, we can say that when banks fall, everyone suffers…except banks.
Banks is a very vague term, same as globalists or neoliberals. Banks go under all the time, it just doesn’t make the news.
Man it is wild how many times banks and automotive companies constantly getting bailed out...man...willlddddd. I wonder why we can never get out of debt.
Definitely want Coffees take on this stuff.
Your channel has really blown up after the last three years it’s crazy how much stuff you actually do props to you