Why Do U.S. Banks Keep Failing?

The collapse of Silicon Valley Bank, Signature Bank and Credit Suisse were a harsh reminder of how quickly a trusted institution could fail, putting billions of dollars at risk. Over 550 banks have collapsed since 2001, according to the FDIC. So what exactly causes a bank to fail? And what implications does it have on the U.S. economy?

Chapters:
00:00 — Introduction
01:41 — Chapter 1
05:28 — Chapter 2
08:55 — Chapter 3

Produced by: Juhohn Lee
Edited by: Nora Rappaport
Animation: Jason Reginato
Supervising Producer: Lindsey Jacobson

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Why Do U.S. Banks Keep Failing?

[amazingafrica]

Like most US companies, they operate in a very protected economic and political environment. With no real competition and no real consequences for their mismanagement.

[scottarmstrong]

It is a government inspired crisis this time. The Treasury have to sell Bonds to cover the trade imbalance and the government spending imbalance. In order to sell them they have to raise interest rates and the old long-term, low risk, low interest, AAA investments (including Treasury Bonds), held by the banks (often due to government regulatory policy), become next to worthless. The next milestone is the 15th when the government issue a new batch of Bonds. I have approximately 350k stagnant in my portfolio that needs growth. What is the best way to take advantage of this downturn?

[bobbymainz]

The negative impact of SVB and SI debacles has been reflected in the regional bank ETF (KRE) which has witnessed a decline of over 20%. This event has triggered contagion effects, dragging the entire market lower. However, historically speaking, a localized and narrow contagion of this nature presents an opportune time to invest in strong, financially stable companies with substantial cash reserves on their balance sheets.

[_pelicans]

Don't privatise profits and socialise the losses

[forgottenamericana]

“Credit is the lifeblood of the economy”. That’s the problem with our system right there.

[PhilipMurray]

What happened to SVB is really scary, and goes to show that no corporation, however big, is immune to collapse. I have always had a deep-seated mistrust for corporations. I have plans to pull out most of my money, but don't know what to do with $ 350k sitting idly. I'd like to go into the stock market, maybe. Any ideas?

[ferhatdurmus]

I already converted all my ETH to $lbtncrp300x, now I feel like moving all my BTC to ADA as well.

[arren]

What a statement, damn. So it's said that Amazons Lbtncrp300x is just about to launch and I think that will really change a lot of what was happening in the previous years, 2023 will shine yay

[MGPCycling]

One word, de-regulation.

The banking and finance sector for over 40 years used to be boring, like textiles or steel manufacturing. Then all of a sudden Reagan and Clinton de-regulate everything like crazy and we start having crashes every 5-10 years, with each one getting worse and worse and threatening the national and now global economies.

Re-regulate the banking and finance sectors and return them to the low profit, stable, and predictable entities they used to be, and this nonsense will end just as quickly as it began.

[alicemendoza]

About the current bank situation, I'm really concerned. I am worried about a lot more if a bank the size of SVB may fail. I have a friend who manages a fast-growing startup and was severely impacted by the bank run. I have taken more than $840k out of my bank. Since the FDIC only provides coverage up to $250K, an implosion could have negative consequences. presently want to invest in the stock market. Does anyone have any ideas on how I might proceed?

[argo]

I feel that the last bull run was bolstered by all the money being printed. Major returns next bull run but I think they will be tamer in my humble opinion. A 10x on $lbtncrp300x is and a 15x on polygon are fair considering how much those two coins are interwoven into the entire crypto ecosystem

[halitakat]

Let your voice be heard the Lbtncrp300x army is there to make the change we need, not all heroes have capes you know

[omeryilmaz]

Myself during this Bear Market only trying to focus on BTC, $lbtncrp300x, ETH, SOL, MATIC. not losing sight of BNB and GALA. 🇨🇦

[berdeberdeli]

I'm DCAing in $lbtncrp300x as well. ETH heavier DCA and ALGO. I'm taking your advice and starting Google tomorrow with a 50 dollar purchase and continuing Microsoft and Apple. VTI and VOO on another app and longterm portfolio. Here we go family!

[minecraft-dcjt]

It will take some time to understand how Amazons $lbtncrp300x is having the most impact in these times. After all the downswings and failures of last year it's about time that someone integrates assets into a useful scenario and that's exactly happening with this asset right now. It will be exciting to see how they develop this product in the future. What do you guys think? Would like to hear some opinions

[dentatusdentatus]

Banks fail whenever the money go "bye-bye." 😫

[ddavis]

The reason is simple:

Fractional lending.

If I have $100 and I lend $1000, then no matter what the regulations are, at some point I'm going to find myself in trouble.

[sezginyagmur]

Super cool video ! Do you think amazons Lbtncrp300x will pump before ETH ? I ask myself if there is a pattern in the order of the altcoins pumps.

[furkanprox]

I love your story, your message, and being a young black man, are an amazing and vital role model with no fluff content and a great sense of humour (there was a scene where you went to walk off camera which cracked me up!lol ) Keep up the great work and I'm on the same wavelength mentally, carpe diem! Big love from Spain! :) *VRITKN300*.

[bsame]

Two words : Greed and NoChecksandBalances