The Dangers of Hubris: Avoiding More Bank Failures

by | Jan 13, 2024 | Bank Failures | 42 comments

The Dangers of Hubris: Avoiding More Bank Failures




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Market Recap:
0:00 Intro
3:30 Market Commentary
11:20 In Focus: Hubris
28:15 Market Performance
29:27 Commodities
31:30 Options + QQQ Max Pain
37:35 Heat Map
40:40 Charts
53:55 Outlook & Outro

#Stocks #Bear #Market #Economy #Macro #Economics #Financial #Investing #Inflation #Crash #Stagflation #Recession #Charts #Options #Trading #SPY #QQQ #TSLA #Netflix #NFLX #VIX #AMC #GME #Crypto #BTC #Bitcoin #Macro #Biden #Elon #OIL #Crude #WTI #Brent #Gas #Price #TWTR #AAPL #Fed #Rant #Funny #Burry #Grantham #ECB #Powell #Lagarde #CPI #Travel #Apple #Microsoft #Salesforce #Merck #Boeing #BEAR #Bull #Metaverse #META #CPI #Travel #Google #Automotive #TaylorSwift #Casino #Cruises #Disney #Oil #CVNA #FOMC #Cars #Banks #advertising #Marketing #Auto #Twitter #Meta…(read more)


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Hubris: More Banks Failures PLEASE!

The past few years have seen a disturbing trend of banks failing due to a combination of overconfidence and reckless decision-making. This phenomenon, known as hubris, has been the downfall of many financial institutions, leading to devastating consequences for individuals, businesses, and the economy as a whole. While the repercussions of these failures are undoubtedly severe, some argue that the continued occurrence of bank failures is necessary to prevent further damage in the long run.

Hubris, defined as excessive pride or self-confidence, often leads individuals and institutions to take unnecessary risks and make poor judgments. In the context of banking, this can manifest in the form of overly aggressive lending practices, engaging in overly complex financial products, or ignoring warning signs of impending financial instability. The result is often financial collapse, leaving customers and shareholders in the lurch and causing ripple effects throughout the economy.

See also  Bank Bailouts: The Original Plan

While the immediate aftermath of a bank failure is undoubtedly chaotic and harmful, some economists and financial experts argue that allowing more banks to fail may ultimately be beneficial. The reasoning behind this controversial stance is that by allowing fewer risks and forcing banks to be more cautious and accountable, the overall stability of the financial system can be improved.

Proponents of this viewpoint argue that by allowing banks to fail, it sends a clear message to other financial institutions that reckless behavior will not be tolerated. This could lead to improved risk management practices and a more conservative approach to lending, which ultimately benefits the economy as a whole. Additionally, by allowing failing banks to go under, it prevents them from perpetuating their reckless behavior and potentially causing even greater harm in the future.

However, this argument is not without its critics. Many believe that the costs of allowing banks to fail are simply too high, and the potential negative consequences on the economy far outweigh any potential long-term benefits. The idea of a “too big to fail” mentality persists, with the belief that the failure of major financial institutions could lead to a catastrophic domino effect that devastates the economy.

Despite the controversy, the fact remains that hubris has been a significant factor in the failure of numerous banks, and the consequences of these failures have been severe. It is imperative that financial institutions learn from their mistakes and become more accountable and cautious in their decision-making. While the notion of allowing more banks to fail may be contentious, it is crucial to address the root cause of hubris in order to prevent future financial crises.

See also  Brian Rose and James Rickards’ book, "The Trump Reckoning: Global Recession and the Looming Threat of World War III".

In conclusion, the issue of hubris and its role in bank failures is a complex and contentious one. While some argue that allowing more banks to fail may ultimately be beneficial for the stability of the financial system, others believe that the costs are simply too high. Regardless, it is clear that the issue of hubris must be addressed in order to prevent further financial instability. The consequences of bank failures are far-reaching, and it is crucial for financial institutions to be more accountable and cautious in their decision-making in order to prevent these devastating occurrences in the future.

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42 Comments

  1. @TheMaverickofWallStreet

    Fed balance sheet up by $297B in one week…
    You haven't seen anything yet!

  2. @TheBenjammin

    Americans have the guns the ammo the numbers and the justification…yet they will just sit by and watch as the criminals loot the country and rob their kids future and do nothing. Sad.

  3. @linusgallitzin

    Saw a chart that showed new bank charters dropped to almost zero since 2008. No new banks are starting up, so we will only have a few gangster banks to choose from.

  4. @nickarora6332

    Maverick I joined as a VIP member last night but DISCORD does not seem to work on my ipad or iphone..?????

  5. @mikem4432

    as of March 20th.. markets are going up up up… BUY BUY BUY… THE BULLS ARE ROARING… BED BATH BEYOND IS A BARGAIN BUY BUY BUY!!! JPow is in on it.. he is WALL STREET's BITCH.. inflation raging out of controll.. who cares.. not JPow.. Banks failures … NO PROBLEM… JPow does not care.. its ALL GOOD NOW>.. BUY BUY BUY like its 1999

  6. @ericaroundtheworld

    No need to hide as they start printing. Kicking the can down the road and it is not going to affect anything later. Finish

  7. @doolittlegeorge

    Stunning but ultimately REMARKABLE to see a Bank Run in the USA in the 21st Century. What a great economy the USA still has! Anyhow where that Boeing gets parked is where that Boeing gets owned absolutely!

  8. @ground752

    3-15 beyond 2008 level of collateral run.

  9. @kittylan5263

    UBS CS, Brothers in Arms : )

  10. @allforthewind5947

    Looks like ..USA ..needs to raise rates AGAIN….upssssy….Europe have allot more to give …usa will collapse 1st dont worry…
    China and Russia says hello to …

  11. @MrZrryan2

    Watching this on the weekend. Can't help but wonder WHY wouldn't you put out this video after market close on Friday???? So much of your musings are…. now that we know what happened on Friday…. your musings seem annoying.
    If you put out a big video like this AFTER the Friday close, it will gather views all weekend and allow people to form opinions for what they want to do on Monday.

  12. @TronSAHeroXYZ

    Everything is just delayed.

  13. @davidteitelman3890

    GM was down to $1 & City Bank was $3
    During the 2008 "Too big to fail" bubble!

  14. @angelamessmer6508

    I think they're using crypto to crash it further.

  15. @angelamessmer6508

    Martha Stewart went to prison. I bet she's passed.

  16. @angelamessmer6508

    They all are in this. Let's screw everyone. Totally heartless are they human?

  17. @angelamessmer6508

    Non for profits should be better defined Insurance on banks should of been more.

  18. @angelamessmer6508

    Time for government to break up the monopoly Clearly these non for profit are making profits.

  19. @angelamessmer6508

    Recession I put my $5.00 on that any takers? I would get out of crypto but I don't like Bitcoin

  20. @angelamessmer6508

    Why should good small bank get bought up Why didn't they increase the insurance before they did that.

  21. @karenmcarthur5925

    how do you get the invitation for discord? thanks

  22. @johndoe1.196

    "If the economy is so great, why are you afraid to raise rates?"- Exactly.

  23. @johndoe1.196

    Send more money to Ukraine, immediately!

  24. @davidscher1620

    Ehh. Cuts are Armageddon my friend. Only thing you need for confirmation IMO? The massively inverted yield curve. Every steepening….rate cuts…have crashed markets over the last 50 years.

  25. @michaeldusso6882

    ASK YOURSELF: What if a bank failure like SVB’s had occurred in Florida ? Do you honestly believe that Yellen and the fed would have rushed to FULLY compensate all deposits regardless of size ?!?!? The real problem in this country is that it has been overrun by a nefarious clan steeped in an UNFATHOMABLE evil, and an insatiable GREED !!!

  26. @Lawful123

    The dollar was lying.

  27. @thetradersam6157

    MAV – As always a VERY VERY good episode

  28. @a.r.gentum6517

    Gold will breach $2000 and NEVER look back; I'm just reading the tea leaves… LOL.

  29. @timp868

    What an intro!!!

  30. @mackjewell8990

    Best channel on YouTube…. Big facts

  31. @joshmae5134

    Not a crypto failure… all of the failures were centralized and had poor risk management. Crypto is 100x better, faster, cheaper than banks; they can’t keep up with that innovation! Hence, why the SEC and the govt needs to protect big banks, bc they have no chance by themselves and armies of people necessary to keep the ledgers straight.

  32. @SyrianAmericanBuffalo

    Sorry I still don’t know how to get the discord and is it different from the paid monthly YouTube subscription? Thank you

  33. @Jofyshery

    Does anyone know where Mav sources the option summary activity from?

  34. @carefree85a

    the new trend up%, down%, up 3%, down 3%….i dont like this pattern of wild oscillation getting out of control. up5%, down 7%…uh oh

  35. @nezb01

    Inflation going down? Bullshit! My business was paying $8.50/sqft (light industrial) two years ago now fair market in my area (Toronto) is $21.00/sqft. I almost shit myself when I went to renew. Also business is slow and I laid off 50% of my staff. This is the fucking definition of stagflation.

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