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393: SVB's Risky Bailout and The Bank Run “Domino Effect”

393: SVB's Risky Bailout and The Bank Run “Domino Effect”

FromBiggerPockets Money Podcast


393: SVB's Risky Bailout and The Bank Run “Domino Effect”

FromBiggerPockets Money Podcast

ratings:
Length:
46 minutes
Released:
Mar 17, 2023
Format:
Podcast episode

Description

Both SVB (Silicon Valley Bank) and Signature Bank have crashed and burned dramatically over the past week. What once was a few large customers making withdrawals quickly turned into a bank run of epic proportions. Within just a few days, SVB went from one of the largest banks in the United States to one of the biggest bank failures in the nation’s history. But what led to such a fast-paced collapse, and are more banks on the chopping block?
You don’t need to be an expert economist to understand what happened at SVB and Signature Bank this week. But you will want to hear Dave Meyer’s take on what could come next. With bailouts back on the table, many Americans fear we’re on the edge of a total financial collapse, mirroring what unfolded in 2008. With more and more Americans going on cash grabs, trying to keep their wealth safe from the “domino effect” of bank failures, what should everyday investors prepare for?
More specifically, for our beloved real estate investors, how could SVB’s failure affect the housing market? Will the Federal Reserve finally be forced to end its aggressive rate hikes? Could money flood into real estate as hard assets become more attractive? Stick around as Dave explains this week’s wild events and what it could mean for the future of the US economy.

In This Episode We Cover
SVB’s (Silicon Valley Bank) collapse explained and why it failed so fast
The bank run “domino effect” that could put other intuitions at risk
Why a “bailout” happened so quickly, and whether customer funds were secured
Bond yields and why making long-term investments was a risky bet for SVB 
The future of mortgage rates and how SVB’s failure could lead to fewer rate hikes
The psychology behind a bank failure and how it affects the entire economy
And So Much More!

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How Did A $200B+ Bank Collapse In 48 Hours? Is Real Estate Going To Be Impacted?

Click here to check the full show notes: https://www.biggerpockets.com/blog/money-393

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Released:
Mar 17, 2023
Format:
Podcast episode

Titles in the series (100)

For those who have money… or want more of it! Join Mindy Jensen and Scott Trench (from BiggerPockets.com) weekly for the BiggerPockets Money Podcast. Each week, financial experts Mindy and Scott interview unique and powerful thought leaders about how to earn more, keep more, spend smarter, and grow wealth.