13. How SVB collapsed and lost $80B in 48 Hours

Conner and Braden breakdown the latest market news with full analysis of what really happened with Silicon Valley Bank SVB. The podcast explains that banks are vulnerable to failure because they rely on a delicate balance between assets and liabilities, and any disruption to this balance can be catastrophic. One common way that banks can fail is through bad lending practices, where they make loans to risky borrowers who are unable to repay them. This can lead to a chain reaction of defaults that can quickly deplete a bank's capital reserves. They also explores the role that government intervention can play in preventing bank failures, such as the creation of the Federal Deposit Insurance Corporation (FDIC) in the US, which insures bank deposits up to a certain amount. They argues that while government intervention can be helpful, it is not a panacea and can sometimes create its own problems, such as moral hazard, where banks take excessive risks because they know they will be bailed out if they fail. Disclaimer: All opinions from the hosts do not reflect investment advice or recommendations of any kind. This is not financial advice.