SVB had failed risk management and failed to anticipate rate hikes. SVB lax risk management benefitted startups and VC depositors giving them huge, risky loans and rates they couldn't get anywhere else. Why else did they go SVB and not Chase or Citi? Dodd-Frank ended taxpayer bailouts and depositors knew their deposits would be treated as equity to recapitalize failed banks. However, taxpayers again are being used to backstop depositors. Inflation for all.
I may be wrong , but I think the government caused the crush because they forced the banks to lend to uncredit worthy customers in the name of making housing affordable , without actually addressing the real factors causing housing shortages . Now that banks gave out loans at the behest of political pressure, the banks sold off the loans in form of derivatives and when time came to collect the payments from the hundreds of unworthy customers , there was no money to be collected. Overall government (USA govt) caused the credit crunch , greedy banks were just the vessel that delivered the final blow
True, but today it's car loans, student debts and easily accessible credit for consumer goods that are weighing on the American taxpayer. Unfortunately history repeats itself and new generations quickly forget
@@gxex1 Today 2023 Americans carry 1.46 TRILLION DOLLARS in vehicle loan debt!! Any reason why people can’t save any money?? People have no savings or 6 months emergency fund? Keeping up with the Jones’s has a deep impact in our financial lives, mostly living paycheck to paycheck.
This was a fun and engaging video and I really appreciate the thought process that's gone into making it accessible to casual viewers! Everyone should have access to critical economic and political information, even if their cultural and educational upbringing makes it harder for them to engage with the traditional ways it's presented.
also in stead of government bailing out bad banks the banks can take their depositors money and pay off their debts. because the money you deposit in the bank is now considered the banks money. so much for your friendly home town bank.
And ever since it got repealed, it allowed SVB, Signature Bank and First Republic Bank to put more money in dodgy investments resulting in them losing more money than they had in reserve
CNBC and the NYT put together some very nice and informative videos, but it's also terribly obvious that they're not unbiased and crafted toward leading the viewer toward a political conclusion. A shame.
Research is actually an attempt to avoid being biased. One might be biased and therefore one must follow strict protocolls (scientific methods constructed over many decades which vary from science to science) in order to get answers leading us more in one direction or the other. The problem for CNBC is that they actually ask people who follow these rules and not people like Trump who "believes" something else. Asking relgious people in stead of scientists would discredit their own news. These people do not agree with the "belief" that more freedom in economical terms are better for EVERYONE because their findings using strict protocols tell them otherwise. If you prefer monopolies and a lower standard of living for a big part of the population you can still get a lot of economic growth. You just can't expect that ecomic growth in itself is a good thing (which is something Picketty for example found). There are even some theories pointing in the scientific direction that states will perhaps have even more economic growth with even more economic rules ensuring higher pay for everyone within the state. It is not the oil (resources) in itself, it is the distribution of it. As well as what makes a country more productive! Here are some belief about that topic. But this belief is more inspired by strict protocols rather than the office babble of religion that most people engage in. It is about perhaps the most productive country in the world. And this country also happens to be the place where it is easiest to get rich... th-cam.com/video/A9UmdY0E8hU/w-d-xo.html In terms of science, economy has changed a lot but people do not know about it. Here is a rather interesting piece about that: qz.com/208402/economics-can-do-many-things-but-it-cannot-help-the-economy/ And we have to face the fact that humans are animals sculptured by culture which has tremendous effects on how economy should work. A lot of interesting experiments have been made by Dan Ariely for example. You could actually just watch the documentary called "(Dis)honesty". It is brilliant and in your terms biased. I would just say it is brilliant. The problem is that the experiments show what we all know for a fact. We are for the most part (depending on culture and our in-groups such as countries) a bunch of egoistic cheaters who are in need of strong and smart restrictions in terms of economic policy. This is of course only if you want a better country for everyone and not just the few! So it is therefore biased. If you believe in, and want poverty, as a great deal of americans (for example) do, there are other ways to go. For example just the way america has always gone. More inequality! www.imdb.com/title/tt2630898/
It's kind of hard not to be unbiased when there's obvious bad, say big banks screwing over you because they lost an investment, and an obvious good, say laws preventing them from doing to to you. So unless you ARE a banker, or just like getting screwed, there's no reason to complain here
I'm confused, banks must be?able to trade. It's what they do. How do I have ab interest rate at my bank if it can no longer trade my money like that woman said?
How about no bail outs period. That doesn't have to be a law. Just DONT ue tax money to bail out bankers. This is a bad bill because government shouldn't regulate banks. Its why they do risky thing- because the government depends on banks. Let them fail!
It's easy to sit back and ignore the effects of a banking system crashing... Which happens. So many businesses will be immediately in financial limbo, and many times Doom, as their loaners all disappear in a domino banking crash
They banks are gambling with peoples savings every day to get rich and if the shit hits the fan they dont care because they wont lose out, but the working man will lose his savings, that is unless the government steps in and guarantees everything....where do the government get the money you might ask?? the good ole tax paying working man!
Yes a bale in which means they take all there depositors money and give them stock in the failed thief bank......oh thank you dodd frank.......or Jesse and Frank James
Oh gosh you too? I am having to take notes and can't understand a word they're saying. I thought "Are they English?" I can't understand a word. Can't be American. sheesh. I have to pause several times to catch a word and I still haven't a clue on some words. I wouldn't have understood "audit" if I didn't have common sense to know she didn't mean "order" 😩
Noob Attempts Do you prefer the Wells Fargo of the world to be the only institutions that cab remain competitive? Or would you trust your creidt union or local community bank?
It is amazing to see how these reporters explained the dodd frank act in such a creative way.
SVB had failed risk management and failed to anticipate rate hikes. SVB lax risk management benefitted startups and VC depositors giving them huge, risky loans and rates they couldn't get anywhere else. Why else did they go SVB and not Chase or Citi? Dodd-Frank ended taxpayer bailouts and depositors knew their deposits would be treated as equity to recapitalize failed banks. However, taxpayers again are being used to backstop depositors. Inflation for all.
@2:13 really? all that for an eyebrow joke? Seriously?
I may be wrong , but I think the government caused the crush because they forced the banks to lend to uncredit worthy customers in the name of making housing affordable , without actually addressing the real factors causing housing shortages .
Now that banks gave out loans at the behest of political pressure, the banks sold off the loans in form of derivatives and when time came to collect the payments from the hundreds of unworthy customers , there was no money to be collected.
Overall government (USA govt) caused the credit crunch , greedy banks were just the vessel that delivered the final blow
Who's monitoring the monitors?
This is so helpful. It gave me an understanding about the Dodd frank act
Here we go again! zero lessons learned for the disaster in 2008. Everybody credit up and buy a mansion!
why don't you just buy crypto currency then?
True, but today it's car loans, student debts and easily accessible credit for consumer goods that are weighing on the American taxpayer. Unfortunately history repeats itself and new generations quickly forget
@@gxex1 Today 2023 Americans carry 1.46 TRILLION DOLLARS in vehicle loan debt!! Any reason why people can’t save any money?? People have no savings or 6 months emergency fund? Keeping up with the Jones’s has a deep impact in our financial lives, mostly living paycheck to paycheck.
This was a fun and engaging video and I really appreciate the thought process that's gone into making it accessible to casual viewers! Everyone should have access to critical economic and political information, even if their cultural and educational upbringing makes it harder for them to engage with the traditional ways it's presented.
DODD FRANK ACT IS THE ROOT OF ALL EVIL. FUCKING TERRIBLE.
Or is the repeal of Dodd-Frank the problem?
Interesting having English reporters explaining the American financial system. Is there any videos where Americans explain a policy in England.
also in stead of government bailing out bad banks the banks can take their depositors money and pay off their debts. because the money you deposit in the bank is now considered the banks money. so much for your friendly home town bank.
Dodd Frank has ruined trading for smaller investors. Seriously, all this does is restrict how traders can trade to make it more difficult.
And ever since it got repealed, it allowed SVB, Signature Bank and First Republic Bank to put more money in dodgy investments resulting in them losing more money than they had in reserve
whose here after the robinhood mess
Well this shines a light on what just happen with Silicon bank
Not quite. If the tech companies didn’t panic and rush to pull their money out all at once it would have been fine
No, it probably wouldn't have. SVB were losing money from their dodgy investments and losing it fast
CNBC and the NYT put together some very nice and informative videos, but it's also terribly obvious that they're not unbiased and crafted toward leading the viewer toward a political conclusion. A shame.
Yeah they should been unbiased and said that it's okay to let the banks screw people too.
Research is actually an attempt to avoid being biased. One might be biased and therefore one must follow strict protocolls (scientific methods constructed over many decades which vary from science to science) in order to get answers leading us more in one direction or the other.
The problem for CNBC is that they actually ask people who follow these rules and not people like Trump who "believes" something else. Asking relgious people in stead of scientists would discredit their own news. These people do not agree with the "belief" that more freedom in economical terms are better for EVERYONE because their findings using strict protocols tell them otherwise. If you prefer monopolies and a lower standard of living for a big part of the population you can still get a lot of economic growth. You just can't expect that ecomic growth in itself is a good thing (which is something Picketty for example found).
There are even some theories pointing in the scientific direction that states will perhaps have even more economic growth with even more economic rules ensuring higher pay for everyone within the state. It is not the oil (resources) in itself, it is the distribution of it. As well as what makes a country more productive! Here are some belief about that topic. But this belief is more inspired by strict protocols rather than the office babble of religion that most people engage in. It is about perhaps the most productive country in the world. And this country also happens to be the place where it is easiest to get rich...
th-cam.com/video/A9UmdY0E8hU/w-d-xo.html
In terms of science, economy has changed a lot but people do not know about it. Here is a rather interesting piece about that:
qz.com/208402/economics-can-do-many-things-but-it-cannot-help-the-economy/
And we have to face the fact that humans are animals sculptured by culture which has tremendous effects on how economy should work. A lot of interesting experiments have been made by Dan Ariely for example. You could actually just watch the documentary called "(Dis)honesty". It is brilliant and in your terms biased. I would just say it is brilliant. The problem is that the experiments show what we all know for a fact. We are for the most part (depending on culture and our in-groups such as countries) a bunch of egoistic cheaters who are in need of strong and smart restrictions in terms of economic policy. This is of course only if you want a better country for everyone and not just the few! So it is therefore biased. If you believe in, and want poverty, as a great deal of americans (for example) do, there are other ways to go. For example just the way america has always gone. More inequality!
www.imdb.com/title/tt2630898/
how are they biased
It's kind of hard not to be unbiased when there's obvious bad, say big banks screwing over you because they lost an investment, and an obvious good, say laws preventing them from doing to to you. So unless you ARE a banker, or just like getting screwed, there's no reason to complain here
www.investopedia.com/articles/markets-economy/090716/why-bank-bailins-will-be-new-bailouts.asp
i came here to write a report, not listen to 70s porno music
I came here for the 70s porno music, not to write a report
@@FootyShorts510 lol
03:20 you really didn't have to do that Brenda
Who's here after the SVB bank run?
Thank You CNBC International news, I easily understood the dodd frank act from this video, It's really very helpful for me!
although now we know what gaslighting the dodd frank actually is.
I'm confused, banks must be?able to trade. It's what they do. How do I have ab interest rate at my bank if it can no longer trade my money like that woman said?
How about no bail outs period. That doesn't have to be a law. Just DONT ue tax money to bail out bankers. This is a bad bill because government shouldn't regulate banks. Its why they do risky thing- because the government depends on banks. Let them fail!
K Ham the banks are to big to fail so if they fail America fails. so the middle to lower class is screwed
They control everything and that IS the problem. I'm not ok with all the power they have!
It's easy to sit back and ignore the effects of a banking system crashing... Which happens. So many businesses will be immediately in financial limbo, and many times Doom, as their loaners all disappear in a domino banking crash
They banks are gambling with peoples savings every day to get rich and if the shit hits the fan they dont care because they wont lose out, but the working man will lose his savings, that is unless the government steps in and guarantees everything....where do the government get the money you might ask?? the good ole tax paying working man!
K Ham and no bailouts for automotive companies as well, let them fail.
Banks cannot be bailed out again. Shorts from hedgefunds must cover. Manipulation of our stock market must stop immediately.
Can they banks take some money from us and keep it?
Yes a bale in which means they take all there depositors money and give them stock in the failed thief bank......oh thank you dodd frank.......or Jesse and Frank James
Bail lol
Who's Studying for the MLO National Test??
Why are these English people talking about Americans, like they know us?
Because its CNBC International.
Oh gosh you too? I am having to take notes and can't understand a word they're saying. I thought "Are they English?" I can't understand a word. Can't be American. sheesh. I have to pause several times to catch a word and I still haven't a clue on some words. I wouldn't have understood "audit" if I didn't have common sense to know she didn't mean "order" 😩
There still pissed about the tea we didn't pay them for
Ban option trading, futures, forwards and swaps altogether. And back the fiat currency with gold and or silver. No default swaps and derivatives
Great Video!
Watching this in Sept 2020 makes me even more angry... Here United Airlines...have another 10 BILLION...NO PROBLEM
Doed-Frank as designed attempts to crush credit unions and community banks. The passing of s.2155 is a huge win for smaller institutions.
Rich Schlam yep now they can do whatever they want with our money what can go wrong
Noob Attempts Do you prefer the Wells Fargo of the world to be the only institutions that cab remain competitive? Or would you trust your creidt union or local community bank?
But a lot of those small banks are owned by larger banks
Until it wasn't
The music is so fucking annoying I can't believe an editor let this happened
The lesson is do not take advantage of the disabled
who is that female in the video?
Candice
Something that never should have existed. It's been disastrous for traders.
Dodd frank act
AND NOW THE SAME THING IS HAPPENNING AGAIN!
No it’s not. The transactions are more highly monitored because of the frank Dodd act. “Housing bubble” won’t burst
thanks
They serve soup 🍜 out of the same bucket that soak there feet yuck 🤢
😀 is responsible
This video is so distracting
awesome
waaaahhhh debag
Sick of hearing British accents discussing American issues.
That's because Americans neglect to discuss their own real issues.