Systemic Risk: Silicon Valley Bank(ruptcy) & America's Feckless Energy Policy

In this episode of The Week Ahead, the guests, Joseph Wang, Albert Marko, and Tracy Shuchart discuss three key themes: Silicon Valley Bankruptcy, the Federal Reserve's Quantitative Tightening (QT) and systemic risks, and America's energy policy.

The discussion begins with a focus on Silicon Valley Bank (SIVB), which had a major issue raising capital and faced a bank run on Thursday. On Friday, the California bank regulator shut the bank down. SIVB had $175 billion in deposits, $151 billion of which were uninsured. One of the discussions surrounding the SIVB collapse is how venture capitalists have been affected.

The guests then move on to discuss the Federal Reserve's QT and systemic risks. They note that the US has been experiencing strong data and inflation, and Fed Chairman Powell hinted at a 50 basis point increase this month. The guests discuss whether the Fed will accelerate QT in this environment, what that could look like, and what risks it would pose to the US financial system.

The third theme discussed is America's energy policy. Tracy Shuchart mentions a speech given by US Energy Secretary Jennifer Granholm, which didn't seem to give her more confidence in Granholm's competence as an energy secretary. The discussion touches on the problems with America's energy policy and how it affects the country's overall economic outlook.

Key themes:
1. Silicon Valley Bank(ruptcy)
2. Fed’s QT & systemic risks
3. America’s feckless energy policy

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This is the 56th episode of The Week Ahead, where experts talk about the week that just happened and what will most likely happen in the coming week.

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Time Stamp:
0:00 - Start
00:00:38 - Key themes for this Week Ahead
00:01:50 - Silicon Valley Bank discussion begins
00:05:04 - Venture capital fund safety discussed
00:08:56 - Systemic risk of quantitative tightening discussed
00:12:00 - Fiscal stimulus from the construction industry discussed
00:14:28 - Fed's hawkishness discussed
00:20:46 - QT discussion begins
00:24:11 - The possibility of future inflation discussed
00:31:31 - Japan's approach to debt discussed
00:40:08 - Jennifer Granholm's speech introduced
00:41:14 - US energy transition and permitting process discussed
00:43:15 - Biden administration's goals discussed
00:51:44 - Fed meeting and CPI discussed
00:53:06 - CPI expectations discussed
00:54:04 - Recent movement in oil prices discussed
00:54:44 - Potential impact of the Saudi-Iran peace agreement on crude supply discussed

#Fed #systemicrisk #bankingcrisis #VC #QT #SiliconValleyBank #SIVB #bankruptcy #venturecapital #FederalReserve #QT #systemicrisk #inflation #NFP #financialsystem #energy #energysecurity #energysecretary #JenniferGranholm #USpolicy #economicoutlook #bankrun #California #deposits #uninsureddeposits #monetarypolicy #centralbank #interestrates #renewableenergy #climatechange #sustainability #economicrecovery #stockmarket #investing #globalmarkets #geopolitics #trade #fiscalpolicy #budgetdeficit #governmentspending #taxes #WeekAhead #TheWeekAhead #TonyNash #AlbertMarko #Amlivemon #tonynashnerd #josephwang #fedguy12 #tracyshuchart #chigrl

[hughincalifornia]

'BOOM! "write a cookbook about tacos!!" Love it 23:30 I give that 5/5 Tacos! 🌮🌮🌮🌮🌮

[patdemba]

Tracy's cat has a thing or two to say about 'QT' or just simply doesn't like the

[alexandragibbs]

Albert's windswept hair and Tracey's cat made this a particularly entertaining show.

[patdemba]

Does Africa in the remotest possibility stand a chance of ....Having a decent deal in this space of world economics, be it oil, lithium, gold, arable land ...or whatever ...just a question Tony and friends can mull over...

[patdemba]

Tracy.... What you said at 45:33 about the true purpose of interest in Africa is spot on.... it surprises me how Africa keeps getting the short end of the stick... when it comes to all the rage about the energy transition... when effectively to move on to the energy transition resources from Africa are absolutely needed.... why can't there ever be a win win discussion for Africa ... It's always Africa loose... everybody else wins!....

[richditlevsen]

As a CEO I directed our companies to eliminate debt which we did. This is going to be long and hard Slog

[edwardk]

Disagree with Albert about housing. Just sold condo. Only 2 interested parties. The one needing a mortgage dropped out. Marginal buyer today is cash buyer and they are not paying asking. This, in my opinion, is the near term scenario. Look for prices to gradually lose air. Sure, buyers will eventually adjust to 5/6% mortgages but it will take a while.

[srfyogi]

Old adage is when the Fed starts panicking... the market stops panicking...a .25 basis hike impact on dxy? a.50 hike on dxy? does the dxy not dictate which sectors move in the market ?
Bond market leads the fed...since the 2 yr and 10 yr bond yields backed off last week...does that signal something?
Keep em coming Tony...you are a perfect cuppa Chai on a saturday morning...thanks.

[CycleverseGames]

At 19:40 Tony postulates that the Fed's desire is to break the economy to get inflation under control. The immediate look of concern on Joseph, Albert and Tracy's faces with that statement says a lot about how hard that would hit the economy. Great show as always. Thank you.

[JP-cnqk]

Can you please make podcast separate from your product. Using a podcast of others information makes your product look bad as it's completely unrelated.

[cheerleader]

Great show. The opening segment on how the banking system works should be required course material in every public school in the world. Biggest problem would be to get the teacher's unions to comply.

[marcusyoung]

Useful perspectives as always. Gratitude for your show!

[robertwhite]

Energy policy? LOL! I live on the flattest piece of land in Massachusetts. As many as a half of all the vehicles here are 4 door 4x4 trucks or giant SUVs with names like Tundra, Yukon, Raptor, Pathfinder etc ad nauseum There are no "off roads" here, no mountains to climb, no deserts to cross and no measurable snow. Joe Biden drained the STRATEGIC petroleum reserve to spare poor americans the pain at the pump yet every stupid gullible person drives as big a gas guzzling monstrosity as is possible to buy. That's american energy policy in a nutshell

[senanfoutchedjev]

Another great episode with serious insights. Thank you

[draymond]

Tracy said Canadians would never stand up for COVID restrictions, and the freedom convoy staged the largest protest the world has seen

[s.k.]

One dude is sitting outside with headphones and mobile 😐