Great explanation of why Silicon Valley Bank failed and why the rest of the major banks aren’t at risk.
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Patrick Boyle breaks down why SVB was an outlier. Virtually no risk management, some really bad investment decisions and FOMO led to their sudden failure.
Did he say “not at risk”? That’s a pretty huge claim.
It’s not a bailout. Depositors are being paid out of a pool of money that all banks pay into in case a bank goes under. This is how the FDIC works.
No taxpayer dollars involved. Only depositors are benefitting. No shareholders are benefitting.
WAL is down from 70 a share to 20…
“aren’t at risk” lol
This is an excellent video. Wish we could educated the masses more effectively than people just rolling up rank and blaming “the other side”.
Yes, we see now in real time how ‘not at risk’ they are 🙂
ELI5?/TLDW?
that was nice of German John Malkovich to make this video for us
All investment have risk. You are ultimately responsible for your investment. Putting it in bank is a very low risk investment but ultimately not a zero-risk investment. You are welcomed to store your assets in bunker. But you risk getting murdered and have it stolen. NOTHING IS WITHOUT RISK.