CNN's John Sutter says Silicon Valley bank collapse is a classic traditional banking collapse. It happened because interest rates are way better for a very safe investment someplace else, he says. He compares it to the movie "A Wonderful Life," in which Jimmy Stewart takes over a small bank and tries to keep people from taking all their money out at one time. The run of a sorts on the bank was caused by fear rather than actual lack of cash, Sutter says. 'This is as a bank starts to have problems paying you off'
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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