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Are the Banks Really Failing?? #shorts
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Did you hear about the collapse of Silicon Valley Bank?
I know, 2nd biggest bank failure in U.S. history!
What happened?
Well, like all banks, SVB took depositor’s money and bought investments to try to earn more profit. At the same time a lot of their tech startup customers couldn’t easily borrow money because of the high interest rates, and started making withdrawals to meet expenses. SVB needed cash in a hurry, selling their Treasury bonds at a loss, and then issuing stock, which tanked. This all spooked investors and depositors, and started a good old fashioned bank run. The FDIC had to step in and take over the bank to prevent its complete destruction.
So, can other banks fail too?
I don’t envy venture capital banks right now. But they’re a tiny piece of the banking system. Big retail banks are fine – they have high liquidity and very different laws that govern them. So, your bank is ok, don’t worry.
Wow, OK. Thanks for calming me down!
And of course, learn more about finance and investing by subscribing to my channel, the Keystone Financial Academy on YouTube!
DISCLAIMER
This video was created for informational and educational purposes only, and should not be construed as a source of specific investing, financial, accounting, or legal advice. This video should never be used as the sole source of information, without consulting with a financial or legal professional to determine what may be best for your individual needs. The creator of this video, Elliot J. Gindis, does not make any guarantee or other promise as to any results that may be obtained from using the information in the video. To the maximum extent permitted by law, the creator of this video disclaims any and all liability in the event that any information, commentary, analysis, opinions, advice, and/or recommendations contained in this video prove to be inaccurate, incomplete, or unreliable, or result in any financial or other losses.
Learn about building credit, establishing savings, effective budgeting, and managing debt!
✅ GET THE KEYSTONE FINANCIAL GUIDE:
The ultimate all-inclusive textbook on Money and Investing!
✅FOLLOW ME ON INSTAGRAM:
► @ejgindis
Did you hear about the collapse of Silicon Valley Bank?
I know, 2nd biggest bank failure in U.S. history!
What happened?
Well, like all banks, SVB took depositor’s money and bought investments to try to earn more profit. At the same time a lot of their tech startup customers couldn’t easily borrow money because of the high interest rates, and started making withdrawals to meet expenses. SVB needed cash in a hurry, selling their Treasury bonds at a loss, and then issuing stock, which tanked. This all spooked investors and depositors, and started a good old fashioned bank run. The FDIC had to step in and take over the bank to prevent its complete destruction.
So, can other banks fail too?
I don’t envy venture capital banks right now. But they’re a tiny piece of the banking system. Big retail banks are fine – they have high liquidity and very different laws that govern them. So, your bank is ok, don’t worry.
Wow, OK. Thanks for calming me down!
And of course, learn more about finance and investing by subscribing to my channel, the Keystone Financial Academy on YouTube!
DISCLAIMER
This video was created for informational and educational purposes only, and should not be construed as a source of specific investing, financial, accounting, or legal advice. This video should never be used as the sole source of information, without consulting with a financial or legal professional to determine what may be best for your individual needs. The creator of this video, Elliot J. Gindis, does not make any guarantee or other promise as to any results that may be obtained from using the information in the video. To the maximum extent permitted by law, the creator of this video disclaims any and all liability in the event that any information, commentary, analysis, opinions, advice, and/or recommendations contained in this video prove to be inaccurate, incomplete, or unreliable, or result in any financial or other losses.
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