In this video I try to explain what happened with failure of Silicon Valley Bank (SVB), and some of the effects on the market. Afterwards a give a short update to my portfolio.

Timeline
0:00 Intro
0:18 Bank failures
4:04 LCR
5:42 Implications of LCR
6:56 SVB 10-Q
10:51 Portfolio update

Financial times article (Silicon Valley Bank is a very American mess)

LCR and NSFR

SVB Form 10-Q

My Google Sheet

Feel free to ask questions, if you don´t want everyone else to know what you are asking then send a mail to: thelazymoneygame@gmail.com

Disclaimer All investments carry risk, always do your own research before investing. The expressed opinions in this video are my own opinions and expressed purely for entertainment. I’m not a professional investor and this video should not be considered legal or financial advice….(read more)

LEARN MORE ABOUT: Bank Failures

REVEALED: Best Investment During Inflation

HOW TO INVEST IN GOLD: Gold IRA Investing

HOW TO INVEST IN SILVER: Silver IRA Investing

Episode 143: Bank Failures – What Happened?

In recent news, there has been an alarming number of bank failures occurring around the world. The banking sector is a crucial component of any economy, and when banks fail, the repercussions can be devastating. In this episode, we will dive into what is causing these failures and what the consequences are for both the financial systems and the citizens who rely on these institutions.

The primary reason behind the recent surge in bank failures is the global economic downturn. The COVID-19 pandemic has wreaked havoc on economies worldwide, leading to a decrease in consumer spending, business closures, and widespread unemployment. These factors have put immense strain on the financial sector, particularly on smaller banks that lack the resources and capital to weather such a storm.

Additionally, many banks have been grappling with risky investments and insufficient risk management practices. The pursuit of higher profits has led some institutions to take on excessive levels of risk, which has backfired in the current economic climate. As a result, these banks are now facing insolvency and are unable to meet their financial obligations.

The fallout from these bank failures is significant. When a bank collapses, it triggers a domino effect that can destabilize the entire financial system. Depositors may lose their savings, businesses may struggle to access credit, and confidence in the banking sector can plummet. Furthermore, governments are often forced to step in and bail out failing banks, using taxpayer money to prevent a complete financial meltdown.

For everyday citizens, the consequences of bank failures can be dire. Not only are their savings at risk, but they may also experience a lack of access to credit and essential financial services. This can hinder economic growth and exacerbate already challenging circumstances for individuals and businesses.

To address this issue, regulators and policymakers must implement stronger oversight and regulations to prevent excessive risk-taking and ensure the stability of the banking sector. Additionally, banks themselves need to prioritize sound risk management practices and transparency to build trust and resilience in the face of economic uncertainty.

In conclusion, the recent spate of bank failures is a troubling sign of the fragility of the global financial system. As the economic fallout from the COVID-19 pandemic continues to unfold, it is imperative that measures are taken to safeguard the stability of the banking sector and protect the welfare of depositors and businesses. Without decisive action, the repercussions of these failures could be long-lasting and severe.