The Urgency of Why Banks Are Collapsing

by | May 13, 2023 | Bank Failures | 45 comments

The Urgency of Why Banks Are Collapsing




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As we enter the final months of 2020, the world is still grappling with the ongoing COVID-19 pandemic and its impact on the global economy. One sector that has been hit hard is the banking industry, which has seen several major banks collapse or struggle to stay afloat. So, why are banks collapsing?

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One reason is the economic shutdowns and restrictions put in place to contain the spread of the virus. These shutdowns have had a significant impact on businesses and individuals, leading to a rise in defaults on loans and mortgages. This, in turn, has affected banks’ balance sheets as they struggle to collect on these debts. As a result, many banks have been forced to write off bad loans, reducing their profitability and stability.

Another factor is the low-interest-rate environment that has been in place for several years. Low-interest rates make it harder for banks to make a profit on lending, as their margins are squeezed. This has led to riskier lending practices as banks try to make up for lost profits. Additionally, low-interest rates have led to increased competition in the banking sector, further reducing profitability.

In recent years, banks have also faced increased regulatory scrutiny and higher capital requirements. The 2008 financial crisis led regulators to enact stricter regulations, aimed at ensuring that banks are more secure and less likely to fail. While these regulations have made the banking sector more stable, they have also increased compliance costs, further reducing profitability.

Additionally, technology is rapidly changing the banking industry. The rise of fintech companies has disrupted traditional banks by offering cheaper and more efficient financial services. This has led to increased competition and reduced profits for traditional banks. Furthermore, the COVID-19 pandemic has accelerated the shift towards digital banking, as customers prefer online banking over visiting branches. This trend is further reducing the need for physical bank branches and reducing traditional banks’ revenue potential.

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In conclusion, the collapse of banks is a result of a combination of factors, including economic shutdowns, low-interest rates, increased regulation, and technological disruption. As we continue to navigate the impact of the COVID-19 pandemic on the global economy, it’s likely that we will see further restructuring in the banking industry as banks adjust to the new normal.

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45 Comments

  1. L T

    Agree, the $250,000 FDIC insured amount doesn’t make sense to huge companies.

  2. Cheryl kennicker

    What happened to SVB is really scary, and goes to show that no corporation, however big, is immune to collapse. I have always had a deep-seated mistrust for corporations. I have plans to pull out most of my money, but don't know what to do with $350k sitting idly. I'd like to go into the stock market, maybe.

  3. Pam Agujar

    Nice informative video. Thanks! But, less arm waving because it's too distracting. It's as if your swating at flying insects. I liked you video, tho!

  4. Vickie Adams

    Fear and panic created so everyone runs to grab their money. Take some leave some.

  5. AZBuckeye Girl

    I’m trying not to have a heart attack. We are in construction and have a lot of money deposited with Western Alliance Bank. Only about 15% would be covered by FDIC if there’s a run on the bank.

    We are in the process of placing large orders for an upcoming job and need the liquid funds. I also don’t want to add to the bank’s demise by withdrawing our money.
    I’m really sick to my stomach.

  6. Mykhailo Vasylenko

    well, this video is really informative and gave me some sense of understanding the basics of a bank failure phenomenon. Nonetheless, it IS a clickbait. Thanks for posting

  7. Blue Stone

    So much money in the wrong hands. The combined efforts of the big banks and the FDIC could not come up with the amounts that the depositors withdrew. This is what happens when the government prints money. The sharks get bigger. Where will they strike next?

  8. Sunborn Arizonan

    I don’t know what it is with everyone in the financial industry thinking that it can never get worse and they always assume the minimum. Any competent economist knew that the only way to solve our super inflation situation is to raise interest rates high and fast. Recession or hyperinflation and complete financial collapse of the country. Take your pick.

  9. Raquel Pape

    Sounds like a ponzi

  10. michael Davis

    we should see some fines and jail time for ceo,s.

  11. JPKringe

    who’s here after first republic

  12. Robert de Heer

    I heard Silicon Valley bank collapsed because the Mexican cartels withdrew 45 billion dollars

  13. Maher Fares

    too big to fail too big to bail !!!!!!

  14. Rand Barrett

    Do THIS AsAp
    Graham! Save! Yatchly! Blenheim

  15. Willy Jankins

    Our government works for the privately owned "Federal" Reserve.
    They try to lie and say "The Federal Reserve" is not privately owned, and that Congress regulates it.
    However, this is nowhere near the truth.

    The international bankers that actually own the "Federal" Reserve control everything concerning our monetary system and government.
    Our elected government officials unequivocally answer to the "Federal" "Reserve", although there is nothing "federal", nor "reserve", about this situation.
    You are being played.
    If they took your house and income away you would beg.
    These people are planning to make it so difficult for everyone that we accept a universal currency, own everything at large, and will prohibit our freedoms on a mass scale.
    Our elected politicians do not get into office by our votes.
    We are told which politicians were elected by watching the the media that is owned by the same financial bankers.
    They collaborate, and lie to us.
    They think we are too ignorant to realize what is going on.
    They divide us through the media that they control.
    Wake up.

  16. Real Spen

    I swear this guy looked up “what’s a great video title to get clicks?”

  17. Donna

    Go into Bitcoin

  18. Parrish

    The current bank crisis has me deeply concerned. If a major bank like SVB can experience difficulties, it's reasonable to worry about the impact on other financial institutions. I'm aware of someone I know who operates a rapidly expanding startup, and they were severely impacted by the bank run. Consequently, I withdrew over $340k from my own account, recognizing that FDIC coverage is limited to $250,000 and a potential collapse could have far-reaching consequences. At this point, I'm considering investing in the stock market. I'm wondering if anyone has advice on how I might proceed with this plan.

  19. Anit Kundur

    Authorized theft of the morden history

  20. Ja'Leel Barnes

    They shouldn’t be allow to bet people’s money…sounds familiar

  21. Corey Morris

    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 stock portfolio, what’s the best way to take advantage of this bear market?

  22. Jim Lawrence

    Dismantle the Federal Reserve, never mind getting rid Bank deposit insurance, they're counterfeiting constitutional money.

  23. Oliver Amelia

    A recession as bad it can be, provides good buying opportunities in the markets if you're careful and it can also create volatility giving great short time buy and sell opportunities too, this is not financial advise but get buying, cash isn't king at all in this time.

  24. Lar

    Not true

  25. Scoop972

    Very interesting video, really enjoyed your explanation of this bank collapse to the average viewer! I learned a lot.

  26. Catherine lord

    This administration has putting so many families into difficult situations, I pray for our country, we need compassion for the American people, I appreciate your advice Ms Pamela Anderson, Imagine investing $2000 and receiving $8,350 unless than a week

  27. Heb59

    When rates start to go down, FRC stock will rise. This rise will result in a short squeeze which will sky rocket the price even higher

  28. D Cee

    Me in line at the bank pulling out my 27.38$ to help collapse the bank

  29. ⌚AlifLamRaa

    I know i feel your hearts, i really do for all those loans.

  30. BM VA

    The point is if you have a lot of $$ despot in many different banks with limit of 250k

  31. Youtuber

    Woke Biden's Bank Crisis.

  32. Official Rivv

    I wonder who benefited from this….

  33. Erin Mills

    According to certain economists, it's possible that the U.S. and certain parts of Europe might experience a recession at some point in 2023. Although a global recession, which is characterized by a decline in annual global per capita income, is relatively uncommon due to the faster growth rates of emerging markets like China, in comparison to developed economies. I have pulled out more than $340k from my bank. After all, the FDIC covers only up to $250,000, and the implosion could have bad effect. Looking to invest into the stock market now. Does anyone know how I could go about it?

  34. pm Stff

    If everyone rushes to the big banks we will loose any control of our money, ability to purchase what we want as we know Chase is already tracking this and in bed with the government. Chase is now on the line for closing accounts, canceling credit cards due to a companies political and religious affiliation. But don’t let the government fool you they sent notices to banks to watch for people who may be associated basically Christian views and conservative republican. Of course it was all based on ESG global warming and all that. In addition Chase CEO just came out and said he thinks the government should take Americans property by imminent domain because we don’t have enough land for solar power! But i’m sure they won’t be taking his. Americans need to wake up at what is happening. Fewer choices means more control for them!

  35. JJ

    God created the universe, the world and all of us, sin entered the world because the first man Adam defied Gods instructions. Sin now purmiates every living thing but God had a plan for a savior to redeem mankind. His name was Jesus and the was and is the Son of God and the Christ (which means messiah). For someone to not recieve Jesus as their savior means that person will end up burning forever in the lake of fire a.k.a Hell. For God so loved the world that He gave His only begotten Son, that whoever believes in Him should not perish but have everlasting life. Christ died for our sins according to the Scriptures, and that He was buried, and that He rose again the third day according to the Scriptures. Believe Jesus did this to save you and receive eternal life, Hell is the only alternative. "For by grace are you saved through faith, and that not of yourselves it is the gift of God. Not of works lest any man should boast."

  36. Dejan C

    @7:14
    You mentioned how SVB deposits only has 2.7% of its deposits less than 250K. Can you explain that to me, how do I find out if my Bank is 100% secure or am I not understanding?

  37. Linda Vaughn

    What kinda car is that pls

  38. Sim

    I’m visiting America at the end of the month is it still worth it?

  39. DB Inc

    So do what asap?

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