Both SVB (Silicon Valley Bank) and Signature Bank have crashed and burned dramatically over the past week. What once was a few large customers making withdrawals quickly turned into a bank run of epic proportions. Within just a few days, SVB went from one of the largest banks in the United States to one of the biggest bank failures in the nation’s history. But what led to such a fast-paced collapse, and are more banks on the chopping block?

You don’t need to be an expert economist to understand what happened at SVB and Signature Bank this week. But you will want to hear Dave Meyer’s take on what could come next. With bailouts back on the table, many Americans fear we’re on the edge of a total financial collapse, mirroring what unfolded in 2008. With more and more Americans going on cash grabs, trying to keep their wealth safe from the “domino effect” of bank failures, what should everyday investors prepare for?

More specifically, for our beloved real estate investors, how could SVB’s failure affect the housing market? Will the Federal Reserve finally be forced to end its aggressive rate hikes? Could money flood into real estate as hard assets become more attractive? Stick around as Dave explains this week’s wild events and what it could mean for the future of the US economy.

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How Did A $200B+ Bank Collapse In 48 Hours? Is Real Estate Going To Be Impacted?

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Episode #393

00:00 Intro
02:51 Behind the Banking System
08:49 SVB’s Collapse Explained
22:20 Another Bank “Bailout”
28:12 What Happens Now?

Want to hear more from Dave and the On the Market panel? Check out their full podcast episodes here!…(read more)

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Bailouts Make an Unwelcome Comeback as SVB, Signature Bank Crash

The financial world was rocked recently by the crash of two major banks, SVB and Signature Bank. As the dust settles, the need for bailouts to prop up these failing institutions has once again reared its ugly head, sparking concerns among taxpayers and industry experts alike.

The term “bailout” became a household word during the 2008 financial crisis, when the U.S. government stepped in to rescue failing banks and other financial institutions with taxpayer-funded assistance. The controversial move sparked widespread outrage and debate, with many arguing that it set a dangerous precedent and only served to reward irresponsible behavior.

In the aftermath of the 2008 crisis, efforts were made to reform the financial system and prevent another meltdown. However, the crash of SVB and Signature Bank serves as a stark reminder that the specter of bailouts still looms large over the industry.

The crash of these two banks has sent shockwaves through the financial world, raising concerns about the stability of the banking sector. With the prospect of bailouts once again on the table, many are questioning whether the lessons of the past have been forgotten and whether the industry has truly reformed.

Critics argue that bailouts only serve to perpetuate a cycle of irresponsible behavior, as failing institutions are shielded from the consequences of their actions. They worry that these bailouts create a moral hazard, encouraging banks to take on excessive risk with the knowledge that they will be bailed out in the event of a crisis.

Moreover, the prospect of taxpayer-funded bailouts is particularly galling to many in light of the fact that these same banks have enjoyed massive profits in recent years. The idea of using taxpayer money to prop up failing financial institutions while many Americans struggle to make ends meet is a bitter pill to swallow for many.

In response to the crash of SVB and Signature Bank, calls for increased oversight and regulation of the banking sector have grown louder. Many are calling for stricter controls to prevent the kind of reckless behavior that can lead to such catastrophic failures.

The crash of SVB and Signature Bank serves as a grim reminder of the fragility of the financial system and the potential consequences of unchecked risk-taking. As the debate over bailouts rages on, one thing is clear: the need for reform and accountability in the banking sector has never been more urgent. Only time will tell whether the lessons of the past have been learned, or if we are doomed to repeat the mistakes of the past.