Why More Banks May Fail | Are 'Safe' US Treasuries Safe For Banks

So how could “safe” US Treasuries destroy your bank & why might this lead to more bank failures later this year or in 2024? How did "safe" US Treasuries bring down Silicon Valley Bank & could something similar happen to your bank? That’s what we’ll be talking about today.

And in particular, here are the four questions I’ll be answering:
- How banks make money with your money
- How this became a problem in 2022
- How “safe” US Treasuries could destroy your bank if not managed properly &
- What you & I can do about this possible ticking time bomb

We'll also go through the difference between held-to-maturity securities vs available for sale securities.

👉 Subscribe for all things inflation, investing & retirement!

SOURCES:

#jenniferlammer #bonds #treasurybills
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[DiamondNestEgg]

Thanks for visiting our personal finance channel! We hope this content will help fast-track your financial journey! Everyone's financial journey is different. Please note that: 1) there are questions/ comments which I will not be able to answer without fully understanding your financial, personal & other circumstances & 2) we will not ask you to call us or send us money in the comments on this channel or any of our other social media accounts, so if you see comment(s) along those lines, it is most likely spam - PLEASE DO NOT ENGAGE WITH SPAMMERS OR GIVE OUT YOUR PERSONAL INFORMATION FOR YOUR OWN SAFETY.

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[ccos]

I get an education every time I watch, Jen! Thanks for being so clear and understandable for the average lay person who doesn't have a finance degree. Blessings!

[jeff]

These videos and in particular, Jenn herself are absolute gold. Discovering her has been just like stumbling across gold except I would have burned through all the gold I found and been poor again in short order. With these videos, Jenn slowly conditions my mind to think about economics and banking in particular, in a way that elevates my skills at managing my own money and making me a more educated consumer of financial products. Give a man a fish.. Thank you Jenn.

[chasingcleanair]

Will you please do a video on when to lock in longer duration treasuries. What do you look for as a signal for an optimal time to lock in 1, 3, 5, 10 year notes? Historically, yields have gone much higher than they are today, but yields are currently still much higher than the last several years.

[Ghost-M]

Will you put a video of current US dollar (devalue) issue with potential sell off - of treasuries by other countries and how that may affect govt backed treasuries? thanks.... and thanks for the continued content.

[davidgivens]

You have changed the way I look at Money, and for some odd reason I feel like I owe you.

[tshandy]

I love your work and what you do to educate people here on your channel. Would you please do a video about what risks face short-term U.S. treasury investments in this time of U.S. government debt ceiling brinksmanship.

[xwingman]

Jennifer, would you do a segment regarding iShares SGOV vs GOVT MMFs? SGOV would be protected with SIPC vs MMFs unprotected and earn a slightly higher rate, right? Fees slightly lower than say Fidelity SPAXX. Drawbacks?

[SpringRubber]

Thanks Jennifer. What galls me was the announcement that ALL deposits at SVB and Signature Bank would be covered. Another TOO BIG TO FAIL situation. Totally undermines the rules about risk taking. There is no free lunch. Banks pay for FDIC insurance and their costs get passed on. And it's those banks who are covering the SVB and Signature Bank mistakes. We absolutely need to let risky banks die if their bets don't pay off.

[ramman]

After a decade of crazy profits why did sbc get bailed out. So wrong. The rules are the rules for a reason. 94% should have lost there money. Why would banks change there way if they know they there risky investments will be insured. So wrong

[KathyDragonfly]

Will you please make a video on REINVEST function on treasurydirect t-bills up to 2 years, what interest rate would reinvest get? is it the same interest rate as day 1 when the t-bills term started, or the new rate for the same t-bills term? Thank you Jenn

[michaelavery]

Jennifer doesn't have a crystal ball, but she does have some killer graphs and charts... and a talking corgi!

[gumbear]

What do you think of BIL ETF as a T--Bill alternative?

[khanhluong]

I keep hearing about the possibility of the US going into default if the debt ceiling isn't raised this summer. The question is, are T-Bills still a good option even with speculation roaming around?

[csmalltrees]

Thank you for this video. I have been trying to explain this to a friend, and not succeeding. However, I've been trying to explain it with respect to bond funds commonly in 401k/retirement portfolios.

[nicholasmartinez]

Amazing explanation. Before your channel I didn’t know what a T-bill even was. Now I keep basically all my emergency fund in 1 to 6 month t-bills. I do worry that most banks are still paying next to nothing in interest. I suspect it probably has to do with those unrealized losses you are speaking of 😮

[DixieGeezer]

Based on comments from others, SVB management should be in jail.

[pol]

Hi, do you have a video explaining about buying T bills on the secondary market? I can't buy on auction as I have a foreign account with my broker. Thank you.

[MakuLabs]

Can you please do a video on what would happen to tbills if the United States government was to default

[lydialee]

Jenn can u pls explain how the fdic 250k insured works. I’m a bit confused. Is that per bank per acct ? What if u have say 4 diff cd acct in one bank with joint acct but totally 300k . Does it mean if the unfortunate happen u will tk a loss of 50k? Kindly pls explain more. Thanks as always for giving us informative video.