Jane Knodell, professor of economics at the University of Vermont and Author joins the show for a historical comparison between the previous bank runs & the banking turmoil of 2023. Knodell reflects on the development of the U.S banking system throughout history, the measures taken today to curb deposit flight and how the Federal Reserve ultimately became the lender of last resort. To hear all this and more, you'll have to tune in!
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Referenced In The Show:
Making a Central Bank Out of the Federal Reserve: A Historical Perspective on Wartime Amendments to the Federal Reserve Act: https://www.researchgate.net/publication/368342410_Making_a_Central_Bank_Out_of_the_Federal_Reserve_A_Historical_Perspective_on_Wartime_Amendments_to_the_Federal_Reserve_Act
Fighting Financial Crises Learning from the Past Gary B. Gorton and Ellis W. Tallman: https://press.uchicago.edu/ucp/books/book/chicago/F/bo26527334.html
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Timestamps:
(00:00) Intro
(00:19) Historial Comparisons To 2023's Banking Turmoil
(02:37) The Difference Between Solvency & Liquidty In A Bank Run
(07:17) Making a Central Bank Out of the Federal Reserve
(11:42) The Role of Gold In The Federal Reserve's History
(17:00) Why Did Gold Flee To The Fed In 1917?
(22:57) Permissionless ad
(24:00) The Federal Reserve: The Lender Of Last Resot
(29:51) How Has The Banking System Developed Throughout U.S History?
(35:21) The Collapse Of Silicon Valley Bank
(38:11) The Bank Term Funding Program
(41:14) All Roads Lead Back To Congress
(46:50) Learning From The Lesson's Of The Great Depression
(55:37) The Looming Debt Ceiling
(58:19) Blockworks Research
(59:20) The Trillion Dollar Coin
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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.
