People who deposit money in a bank more than 250,000. Mm-hmm and then all of a sudden you've got a checking account that it's making no money at all because nobody was paying interest anywhere. And people are pulling their money out. First sophisticated people,. then gradually they'll be less sophisticated people. They'repulling their money out and putting it somewhere safe. But the only real good banks can do is to raise the amount of money it's willing to pay you. That's what has happened with this case. It doesn't mean things aren't going to change over time.
The recent collapse of Silicon Valley Bank exposed some major cracks in the way that banks have been doing business, and the upheaval is sending shockwaves far beyond the tech sector.
Unwise decisions from leadership compounded by market uncertainty and rising interest rates is certainly a recipe for disaster. How can we analyze these and other warning signs, like an over-reliance on a volatile tech sector, to anticipate and avoid future losses?
Join Phil and Danielle for a postmortem of SVB and a discussion of how its failure could impact value investors.
If you need help identifying warning signs of impending crashes, download your free copy of Your Ultimate Stock Market Crash Survival Guide: https://bit.ly/3YLope0
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