The Domino Effects of Silicon Valley Bank's Collapse

CNBC Contributor and Big Technology writer Alex Kantrowitz joins Andrew to shed light on Silicon Valley Bank's collapse and its far-reaching effects on small banks, real estate, and even your retirement account. Alex and Andrew delve into the Interest Rate Theory of Everything, the financialization of tech, and what might happen next.

00:00 - Intro
01:07 - The Impact of SVB’s Failure
13:38 - The Interest Rate Theory of Everything
22:16 - Some Historical Context
32:24 - Interest Rates and Inflation
41:35 - Lessons to Learn

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[tagamial]

I hope you can make another run for President Mr. Yang ! Our country is heading in a bad direction and needs someone smart and energetic to help straiten it out !

[MarksmanSpecialist]

based on the discussion, im finding the whole adjusting interesting rate is almost a gimmick at this point, it causes more issue than it improves in term of economy, or the illusion of benefits and the hidden cost. Sure when you lower interest rate, new hidden sector or business evolves or spawns, but there's also moral hazard and bad actors who pray on these low to zero rates. Especially those huge growth companies with low to zero income. And when the rates goes up, it creates a big mess that needs to be cleaned up. An analogy that I can think of is having two car driving parallel on a similar road. They both need to get to the same destination. If one cruises at a normal steady pace with no accident, and another one keep accelerating and decelerating, sure it may looks like the 2nd car will get there faster but if he needs to decelerate to avoid accidents, there a chance he will end up in an accident. By the end of the road, does it looks like the 2nd car did any better shaving off a few minute or hours at the risk of accidents. If this was a monte carlo simulation, I rather be just the first car, set a reasonable average cruising interest rate and not constantly adjusting the acceleration.

[justaname]

wow this is very cool i caught this by chance - Andrew Yang you are the best!

[barebonesgames]

We cannot act like interest rates haven't been way too low for way too long. I feel that, politically, our economy was so horrific, the only "easy fix" was avoiding the bigger systemic issues of outsourcing & lack of manufacturing, & just allowing the economy to COAST for an election period. But it was only a matter of time before another external stressor came about to suddenly leave us unarmed when it came to how we pivoted with our national economy.

[sphereron]

Wow this is a rare take that I 100% agree with

[HagothVoyage]

Thanks for the well-reasoned information on the financial scare.

[AtlasAssistant]

Its not hard at all to see why entrepreneurship(tech in particular) has become villainized. Its not political polarization its venture capital. Opening a business especially in the tech sector is no longer about following dreams or creating jobs. Now its about exploitation and extraction of profit so you can please the VCs that funded you. Companies like WeWork and Uber that got this reputation as scrappy disruptive startups only to rapidly transform into dystopian gig economy overlords do no favors for that nostalgic view of starting a business you seem to have

[ronaldmcdonald]

Privatised profits socialized bailouts

[michaelritter]

Thousands of regular people lose their jobs every day so that corporations can squeeze out a few more dollars profit. Who saves them? It is interesting to see who is worthy of rescue. Again, corporate profits are privatized and loses are socialized.

[nicholesvaughn]

Andrew yang you saved my life I want to help push you to the white house I have ideas for you

[greenybros]

On Election Reform and Ranked Choice Voting in Maine in the year 2020.

It is time that the election reform known as Ranked Choice Voting be reflected in our Maine State Constitution.

The will of the People of the State of Maine is to participate in a Democracy that is fair and equal to All. The voting reform known as ‘Ranked Choice Voting’ is a step closer to realizing this goal.  
All People deserve fair and equal political representation. Political representation in a functioning Democracy is not to be limited by the construct of a strictly 2 Party State Government...the Democrat and Republican parties do not have the authority to limit my political representation but they do so directly by censoring and discriminating against minority political parties, , , , this censoring directly reduces informed and reasonable debate in our Democracy, this censoring is a form of discrimination against all U.S. Citizens .

Evidence.
The 2 party state consisting of the Democrat and Republican parties has now resulted in a ‘do-nothing’ government. The 2 party state is locked in ideological differences which has resulted in unending confrontation. The 2 party state has reduced my democracy into a bitter bipartisan stalemate that has directly resulted in the division of my society and the destruction of a functioning Democracy.
The 2 party state has become a failed government. US government has been reduced to a 2 party state controlled by corporate interests which is a direct threat against U.S. Democracy.
It is time to put an end to the destructive corporate backed two party state.
It is time for a redress of grievances.
Let it be known, , ,
All Citizens deserve freedom of association with any political party they choose. All Citizens deserve equal rights and access to political representation and full and fair treatment in the political process.
All Citizens should be encouraged to participate in a Democracy, , , if a system of government such as the 2 Party State restricts these rights it is time to change that system...
therefore, it is time that the election reform known as Ranked Choice Voting be reflected in our State Constitution, the will of the People demands it is time to reform our Government .

~Samuel Swenson
October, 2020

[TylerClibbon]

down with the money shufflers, we can afford to give ubi to the people that lose their jobs with the insane amount of money that we save by getting rid of most of "financial services" which is a euphemism for the middle man

[TommieCobb]

Banks should maintain 25-30% of all of their assets as liquid, 20-25% in liquid adjacent assets and then the rest they can play with the same way they've been playing with for decades. At least in this way, customers can at LEAST see 50% of their money if the bank goes under.

[beginnersguide]

What is wrong with Stagflation? The FED needs to stop ( Quantitive Tightening. ) Part of why the systems failing is because the cash is not there leaving a void.

[welcomeaboard]

The reason we said let them fail is because those companies made their decisions. Entrepreneur is just another name for capitalist. In capitalism, you either sink or swim. You're either a greedy capitalist or you're a compassionate socialist. You all have supported capitalism. This is what capitalism looks like, so enjoy your choice.

[barebonesgames]

Barnie Frank had TONS of Bank Lobbyists that had tons of Republicans--AND Democrats--in their back pocket & it's a pure miracle that Dodd-Frank passed in ANY shape.

[russellgallman]

Humans have been around for 300, 00 years. Modern humans have been around for 200, 000 years. Agriculture has been around for 12, 000 years. Capitalism has been around for 300 years? Now the fight is between what's left of Industrial Capitalism and Financial Capitalism. What a trashy, unstable, goofy system.

[ConservativeJuggaloPodcast]

When Trump is wrapping up his 2nd term you should run as a Republican in 2028, i will 110% support you

[russellgallman]

I clocked out at the 40m mark. When Alex started referring to paying off the National Debt, that's a dead give away that he has ZERO theory of money. He may be a genius, but he has no conceptions of stocks and flows consistent modeling. The National Debt is a stock. It is ALL the money spent into existence by the fed gov while provisioning for the public purpose, and was never taxed back out of the system. The National Debt is reflected as a liability on the currency issuer's books, AND it is expressed as an asset (wealth) on the non-government sector's books. Simply, the National Debt is what little money that I have parked as my wealth.

[shinkurt]

Talk about GPT. Talk about automation. Don't pivot away from it. Now is more than ever your time.

This was your whole thing and after chatGPT everyone gets it but you slacking. No one is interested in getting the same news they get everywhere else from you. Stand from the thing you stood for before guy!!