Why the Federal Reserve Is To Blame For the Silicon Valley Bank Collapse
ฝัง
- เผยแพร่เมื่อ 14 มี.ค. 2023
- The Federal Reserve printed billions of dollars for the big banks and the banks put that money right in their own pockets. Ana Kasparian discusses on The Young Turks. Watch TYT LIVE on weekdays 6-8 pm ET. th-cam.com/users/theyoungturkslive
Read more HERE: www.levernews.com/regulators-...
"In the years before Silicon Valley Bank’s sudden failure, federal regulators gave the firm a special exemption from rules designed to prevent deposit-taking banks from engaging in risky investments and financial speculation, according to records reviewed by The Lever.
The move - which was a precursor to regulators later extending a similar exemption to the entire banking industry - coincided with Silicon Valley Bank, or SVB, continuing to invest in the high-risk venture capital industry in the lead-up to its collapse, which is the second-largest bank failure in U.S. history.
As the federal government now protects SVB’s depositors from losses, the bank’s demise has touched off alarms about broader risk in the financial industry, just a few years after both lawmakers and federal bank overseers began rolling back some of the reforms that followed the 2008 financial crisis."
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I am really worried about the current bank crisis. If a bank as big as SVB could fail, I fear for a lot more. I know a friend who is running a high-growth startup, and was badly hit by the bank run. 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?
We underestimate the fact that banks are corporate entities also governed by greed. Since 2020, the banks have been over-leveraging their assets, which was one of the reasons for SVB's implosion. I have never been okay with keeping much money in the bank. I simply invest through my financial advisor, collect my profits, which I then spend.
I have learned to not trust corporations. I was badly hit by the '08 financial crisis. Since 2019, I've just been focused on investing through a financial advisor, and it has been paying off, and I'm never going back to banks full time.
@@lowcostfresh2266 This sounds really interesting. I've been thinking of pulling out my money too. Could you recommend who your advisor is? I could really use some help.
@@TomD226 Oh, I'm not really in the business of giving financial advisor, so you are responsible for your decisions. But I have been working with Laurel Dell Sroufe, so you could check her out and contact her, if you want.
@Willie Yeager Is this the same Nicole Joi Andersen who just finished her 15-year federal prison term for defrauding her investors? You’re a fool for trusting her with your money. If you want to waste your money, go throw all your cash into the ocean. At least that way, thieves like Andersen won’t be able to get rich off of another victim.
isn't it funny how the rich can't be allowed to fail, but ordinary people loosing everything is fine.
The rich have failed the most! But instead of blaming others the rebuild and learn from the past. Not blame it
@@danielbrown7077 You need to open your eyes and look at reality.
Imagine the government loaning you $1 million, you invest it in I-bonds, you then pay the loan back interest free after selling the I-bonds and keeping the $90,000 you get from them! That is basically what the banks did after the 2007 banking crises those same banks caused.
Rules for thee, not for me
and the collateral destroys the country, these people are despicable
So what you're saying is, our financial policy has literally created a wealth and banking bubble, almost wholesale... Didn't we go through all this once before... Like 100 year ago? There is people right now who've made billions by just having our financial system give them unregulated free money. And the more wealth accumulation, the worse it gets when it crashes.
i love how anna explains using regular words then add sheer rage. Spot on anna, please never change!!
A friend works for the Minneapolis Fed. He was the head of research, he was tasked with " Find the quickest and cheapest way out of the bank crisis." They worked it three weeks and gave them a report that said give every adult American $318,000. The report was shelved, but that was the "Quickest and Cheapest" way out. Of course the unexcepted consequences could be devastating on it's own.
The US is the Reserve Currency, how would this be devastating?
@@bodyloverz30 Just in terms of people buying drugs and over dose, others gambling it all away, investing and losing, perhaps hyper inflation. Others of course would use it to pay off debt, buy new cars, new appliances etc.
What are the "unexcepted consequences?"
@@bodyloverz30 I didn't get to read the report it was just a conversation we had in a parking lot and unexpected kinda by definition means unknown
The Fed's mistake was in trusting people to do the right thing. You must force companies to do good things. Always.
That is VERY true sir.
That's exactly right, but without oversight it's too much like intentional. I mean, the Fed doesn't know how greedy the Banking industry is ? I find that hard to believe.
@@recycled3654 They had faith in humanity. This is a mistake, but one I cannot blame them for.
Nope. SVB was overly concentrated in one market (risk) and then took risky bets by buying long term bonds (risk). They were without a chief risk manager for 6 months. That’s proof that either they didn’t care or it was so bad that no one wanted the job.
@Angelo Balbi but risky if you lock you depositors’ money for 30 yrs
Why do people comment on things they have NO idea what they are talking about? SVB bought Treasuries, not Bonds.
And SVB DID have a CRM through 2022, Laura Izurieta. In April, she changed her role from CRM, from looking at traditional Risks., to one that focused on ESG scores and investing in risky ventures solely due to their ESG scores.
Back in 2008 instead of helping my bank Washington Mutual, the government gave a ton of money to JP Morgan Chase which stepped in and bought my bank, canceled all my low interest credit cards and issued new credit cards with jacked up interest rates!
God bless the Corporate States of America! 🤦♀️
Well done Ana, you nailed it 100%. Every single American should be pissed. Time for the pitchforks and torches. END THE FED
Do you think this is Europe? Most Americans don’t even know what a pitchfork is. Let alone actually get out and do something.
Careful, 2 Kennedys ate bullets because they wanted the same thing.
Sounds Antifa-ish. No thanks.
Ana couldn't nail it if she had a dildo and a sledgehammer
@@Eric-oi5yj YEP the retirement age in France is 62 - every Franch person is given a pitchfork as an 18th birthday present.
Great job, Ana!!
So you are saying that I can't get a mortgage to buy a home, but a bunch of rich guys can buy a thousand homes and rent them and the government will back them but not me buying a home.
BinGo! Welcome to America.
privatizetes profits , socialize losses
Facts 👍🏽. Most ppl do not even know about the Fed reserve 💡
Excellent job as usual Anna.... I wish CNN and MSNBC ran your 6pm show every night at 8 EST. Maybe then we'd have a SHOT at having an informed public. If I didn't give up teaching civics to work in tech (my original career but I wanted to save the world), I would TOTALLY use this in a lesson. Omg you make it easy. Much love.
This is so incredibly misinformed I cant even. Treasury bonds are not devalued unless you cash them in. The bank had to because wall street was running around spooking the investors. The bank had plenty of liquidity as evidenced by the fact that ALL of the transactions went through until FDIC took over.
Let me break it down for you. They had about $200 billion in assets. Okay? so they held about 55% of it in long term assets LIKE but NOT limited to T-Bonds. So that leaves them with what $90 billion in short term assets? Do you know how much money was withdrawn from that bank in 1 day? $42 billion. That is insane.
For context, JP Morgan Chase that has assets worth 3.2 trillion sees a daily deposit and wirthdrawal of about $50 billion around the world. That is not just withdrawal. So for a bank the size of SVB, $42 billion is a lot as such but in one day? It is a death sentence. And the fact that ALL of those deposits went through shows you this WAS NOT a liquidity crisis.
They didnt have to sell because they were running into liquidity problems. They had to sell because wall street was talking smack about the credibility of these banks spooking the investors. And their decision to sell meant that the capital now had less value than if they had just decided to hold. But it still wasnt a problem. As we have seen they had enough to cover the cost without them as well. Then wall street went into overedrive about the fearmongering against their 'assets being worth nothing' and convinced their buddies to withdraw money and caused the run on the bank.
Why? Because they are making money by SHORT SELLING the shares of banks like this. Dodd Frank and all wouldnt have prevented this. They should be in p;ace but wouldnt have. You know how I know that? Credit Suisse was monitored DAILY under much stricter regulations and they still faced a run because of freaking wall street. And in their solution to the problem, they have offloaded all the costs from shareholders (who are supposed to be the first ones to take the hit) onto bond holders, aka US treasury which is already teetering precariously after a decade long campaign of Quantitative Easing. And if you keep believing this nonsense you will never even come close to finding the hem of the proper solution. Which is regulating bank street, have a committee to oversee long term monetary policy AND military spending and freaking get a grip on MIC until we can atleast revalue the dollar and fix the supply chains
You are right about quantitative easing!!
Yes, frankly they should have been charged with fraud as it is clear the money was intended to loan the money out.
These are the same People who say it's unfair to give debt relief to College Students! And don't forget in the 08 crash Homeowners didn't get saved and the Banks did not lend their bailout money and the Stock Market has just become a big Casino.
Banks have customers credit unions have members and lower interest rates, credit unions share profits with its members, banks DO NOT share profits with its customers, credit unions are community-focused, credit unions offer free financial education, and credit union employees are just like us. Credit unions want to keep personal finance simple. The less complicated, the easier it is to save for the future, pay off debt, or achieve another financial goal. Employees understand these needs because just like you, they want to spend less time worrying about finances and more time enjoying life. Credit unions offer personalized services, financial products, and educational resources to do just that.
Totally disagree with that assessment. This collapse lays at the feet of the banking industry, n even more so with the executives in charge. These people knew exactly what they were doing. Don't for a second believe the crap ur selling.✌
So essentially nobody decided to do their job and only think of themselves and no one's being held accountable because of it and we're all supposed to be okay with that now I'll tell you what's going to happen when loved one is dying in your arms because of the bank gambling with their retirement you're not going to be okay
So it’s not actually the FED’s fault. The banks using the money for the wrong reason’s and losing it caused the problem.
Yeap. The feds gave them money and they didn't put it to work properly so how would it be the Feds fault they mishandled their funds???
This is all why I was such a staunch supporter of Ron Paul for president in 2012. Because it is not a right/left issue. This is so beautiful to see this coming from the left.
Stock buy-backing should be legally banned.
Can we please outlaw stock buybacks again? This would solve so much of the artificial inflation that leads to crazy bubbles and recessions
Tax the buyback purchase at 40%. The US would be out of debt in no time.
@@talk3194 I wish I could give more thumbs-up
Can we F****** END INSIDER TRADING BY CONGRESS FIRST????????????
Maybe the Feds should only deal with Credit unions next time.
The system is designed to help the rich and that’s it, it’s obvious but we can’t do anything about it
You really should be an financial adviser and an instructor. I love the way you explain things.👍👍👼
I can't believe it. I am a conservative and totally agree with what Anna is talking about.
@Angelo Balbi ...huh?
The FED should just give the money to ordinary people in a form of a UBI or stimulus checks. That money would circulate through the economy and cause a multiplier effect. During the Pandemic the economy was kept relatively stable with stimulus checks, extended unemployment, expanded Medicaid, and generous SNAP. You give Main Street money they spend it right away to survive.
But all that money was passed to the tax payers. People's actual labor. As usual. No thanks.
Are YOU not a tax payer?
th-cam.com/video/dMI_EBJFRJY/w-d-xo.html
Yup. I would consider it a tax cut if I get it back tax free like the Stimulus Checks. Make these idiot banksters pay for it or go into debt doing it. The debt will lessen as more tax revenue is created for all local governments and Federal Government as jobs are created.
@@edwardvasquez4968 Money will never be given to anyone for free that actually has a real honest need for it. Universal Basic Income is a socialist construct that will fail because too many people will become dependent upon it. The rule in the realm is that you work or you do not eat. (old testament).
Watched this documentary on frontline last night, it was really well done. The federal reserve needs to be stopped lol
The lust for money is the foundation of most evil.
The entire system sucks. Many, many, many years ago, it used to be a good thing to have a savings account where you could earn decent interest on your money. That was a good thing. Now, the wealthiest just keep getting greedier and greedier; no interest for the "little people", heaven forbid others should be able to eat and keep a roof over their heads.
Ron Paul was saying this long before it happened
The banks had interest free money and credit cards still 20%
Great show thanks
Very informative
Very informative video
Great piece, girl. Learned a lot.
I absolutely love your videos! Totally on point ❤️
We're talking about a federal appointee by donald j trump... He was strategically placed there. Now America suffer
🤦♀️🤦♀️🤦♀️🤦♀️🤦♀️🤦♀️🤦♀️🤦♀️
Geez.... This is terrible. Thanks for clearing up some questions I had that hadn't been answered
Great explanation
Do they still think its working families needing help is draining the economy seriously
Me being upset that milk is 7 bucks a gallon is totally killing the economy. I deserve to be flogged.
None of this is a problem.
The problem is a lack of taxation. Tax the money from the top once it's trickled up, then put it back in at the bottom.
The top 10% already generate 74.7 % of all taxes revenue.
How much more would you like them to pay?
The problem is that we have a lot of lazy people in this country that refuse to contribute. Over 40% of this country doesn't pay income tax, but they expect Disney World!
@@hunternedib1119i'd like them to pay less in taxes, because the 90% of people were paying 74% of the tax.
It's not the 40% fault that the 10% are taking all the money.
@@Pantifaximile If they're paying 74%, who is really taking the money?
@@hunternedib1119 The public.
Every time they say "markets" think sociopathic investors .
One if your finest moments. Thorough, accurate, necessary! Thank you
Excellent presentation.
I appreciate the research, Ana
Thank you!
Perfect show. The whole thing. Thanks Ana.
Repeal, replace Jerome Powell...introduce a Windfall Profit Tax and stop greedy price gougers
Thanks for this video. Even though I don’t agree with all of your views, I appreciate you getting this info out there and appreciate the heads up to the people of our country.
Great 👍 report Anna
Very good information to put out. What was not mentioned was that some of the additional rise in the fed rate was due to the corporate world raising prices beyond their increased costs. This resulted in higher inflation than would be normally seen. The overall reason was to literally cause pain to the voting population for political purposes. That is to get the voters to vote for more Republicans which corporations want in power to continue to operate as tax free as possible. So now several million people only see the results of a Democrat in the White House and not the underlying forces that created the results. Zero pressure or questioning of corporate money gouging was seen by the average American. Today nearly everyone is bought and paid for in the halls of power. Until that ends we will be expendable in their eyes.
@DFV Louderilk Once an idiot always an idiot aren't ya
The only problem to that argument is, banks and corporations do better under Democratic administrations. That's a fact you can easily Google.
Socialism for the rich, capitalism for the rest.
good Job
And yet there's no money to help with student loan debt, or medical debt. Got it.
When regular people print money it's called counterfeit. 😆
Yet people still don’t get it. th-cam.com/video/vEWW8foIluA/w-d-xo.html
Krystal Ball said it best --
THE STOCK MARKET IS JUST A GRAPH OF RICH PEOPLE'S FEELINGS.
Someone actually named their kid Krystal ball and she's NOT a stripper? 😂
Are you upset you're not in the market?
Well, it's not measuring anything real.
The problem is we only do things after the fact
Funny they handed out bonuses just before the collapse . Corrupt system
They're officially rolling out CBDC's in July. That's what this is really all about.
Highly suggest the documentary Easy Money they are referencing - its free here on TH-cam, uploaded by Frontline.
Sorry, but putting disproportionate blame on the Fed is gimmicky to me. Ultimately, the problem is the federal government including Congress and the Executive Branch did nothing to put restrictions on how banks used bailout money and put no pressure on the Federal Reserve to reign in easy access to money. The Fed was essentially doing what it could to prevent the collapse of every major banking institution in the country (which was necessary) but the low interest rates continued for 12+ years too long with no parameters on the how banks and corporations would use the tools. That’s not really on the Fed.
OHMYGAWD!!! Ana gets this 100% correct. It's a rare thing for a woman to understand monetary theory. Janet Yellin sure as hell doesn't.
Dr. Stephanie Kelton is a leading proponent of MMT and a woman. She's been interviewed on TYT before. That's probably where she learned it from. Janet should watch.
@@jen10272001 Anyone who believes in the Magic Money Tree should be taken with a grain of salt.
Janet Yelling favored tightening.
There should be a free market in interest rates, not this crap of the Fed keeping interest rates artificially low, leading to asset bubbles and quantitative easing which leads to currency devaluation and inflation.
The free market ain't so free after all. 🙄
They always have $500 million for Ukraine! What about us?
We are in 2nd gilded age, prior was 1920's. 20's were followed by "dust bowl" depression in 30's . We are in same boat today. FED should be going after corporate greed and profiteering
The Fed is a banking cartel. Why would they hurt their own interests? 😬🙄
"Give me control of a nation's money, and I care not who writes the laws." - Mayer Amschel Rothschild
Well said. When it falls, some will do as they do now and blame the poor or over worked under paid people.
Great breakdown from Ana without getting too dry.
Great report. You rock Ana:D
In this case Fed is not to blame. SVP high flying execs operating in a deregulated banking industry taking high risks with depositors's money to make more profits. Dance to the music, pay to the piper. But no, taxpayer money bailout again like 2008. 🥶
Another transfer of wealth from low and middle income households to high income/net worth house holds.
FDIC has only $25 bn available. These are just words as it can only cover a small amount. The US economy needs $2.5trn of fresh capital per year.
How y'all think the stock market went up the last 20 years. Corporate buy backs from printed money but Crypto is a scam 😂😂😂😂
Have we tried giving the super rich billions of public dollars? Always worked before.
Bring back Glass Steagall.
Thank you so much for this breakdown. This stuff doesn't come easy to me and a part of being politically engaged and adulting in general is understanding these issues.
The longer they delay the pain, the worse the pain will be...... Economies and stock markets HAVE to experience down turns from time to time in order to build resilience. That hasn't been allowed to happen since 2008.
these banks engaged in risky behavior , the government introduced trillions of dollars quickly into the system which caused inflation , and partly the fed reacted to late
Ana is the best! 🎉
One of TYT's better productions. Wouldn't suggest that no corporation has created innovation and value, but all of the info about stock buybacks and Fed printing money, etc: Good exposure of bad stuff. Do you think Bernie would have had a different policy?
The national debt is a Ponzi and why did those within selling bank stock not being treated with illegal trading! One week and no reporting!?
This is the smartest and most relevant news segment I have ever seen. Thank you, Ana. You Rock!
Late stage capitalism is a wild ride
Yep.
The whole idea is that banks profit cause of risks. The tax payers pay the risks, but bankers keep all the profits for themselves.
The biggest part of the problem is that the fed conflates the stock market with the economy, and we all collectively agree. Additionally, when dealing with an addiction withdrawals are likely outcome. The fed insist on enabling Wallstreet with additional money printing, and at the end of the day , the labor class pays the price. Monetary policy should be in the hands of the people. As long as the fed exist in this current form inequality will continue to be a problem.
Too many wanna-be rich idiots support and enable this banking cartel system . 😬🙄
Saying it's quantitative easing is unfair. Not to the policy, mind but to QE, which _can_ be used awfully and often has, but implemented better (strictly buying your own bonds, rather than junk debt) and with correct timing can actually be a positive thing that destroys government debt and stimulates the economy.
Businesses must connect active at home or active aboard but not for the top only
Correct!
Of couuuuurrrse the Fed saw it coming (is the thing I have no evidence of except it’s so stupid to do.
brace yourself...more necessary rate hikes on the way.
"Hate-watching". 😆 Never heard that used before. When I occasionally make comments on Fox, I don't watch. I just read the title, put it on mute, and get started.
It's just a game if Monopoly.
We need more Chance cards and a larger Community Chest, though. 🤔
We are in a second Depression. At least, we, the people, are. The banks and the wealthy are not, yet. But they're playing games, and the U.S. is going to have an economic crash that's going to make 2008 seem like nothing.
if everyone shared this video on their fb maybe we might have a chance to avoid financial destruction.
The banks tool the money....Corporate greed is the real issue she is describing.
Who the hell believed (6 times bankrupt) Trump was the best person to give financial advice???? ONLY IN AMERICA!!!!