Today, Silicon Valley Bank, an institution with over $200 Billion worth of assets, failed. Chris Whalen, chairman of Whalen Global Advisors, returns to Forward Guidance to explain why.
Whalen attributes the collapse in book value of SVB Financial (the entity that owns Silicon Valley Bank) to the Fed’s rapid hikes in interest rates, which severely depressed the market value of the bank’s holdings. Whalen argues that, unless the Federal Reserve cuts rates and opens the discount window, the U.S. is at risk of a banking crisis.
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Disclaimer: Nothing discussed on Forward Guidance should be considered as investment advice. Please always do your own research & speak to a financial advisor before thinking about, thinking about putting your money into these crazy markets.