Banking crisis: will there be a new recession?
Spectre of Communism
00:00
The Impact of the Bankruptcy on the Economy
Every pretty much our entire economy is funded. It somehow involves the banks, even simple bank transactions. And I think that's what you really saw with SVB is the potential ramifications that the collapse of the bank would have for the wider economy. Now this came about. It was a classic bank run. The people who had deposited their money in SVB thought that they wouldn't be able to withdraw their money at a later date because the bank was in such financial difficulties. This starts on a small scale. Really the IT sector, they have advertising revenue in Silicon Valley, the IT sector have fallen and as a result, they're balance sheets are falling or they're entering the lost territory.
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