A big chunk of what banking succeeds with is low cost deposits. People don't think about the value that banks extract because they provide a low cost funding to a lot of different businesses, says Youjus. Upstart ll never have that, or at least in its current manifestation, will never have that," he adds. "Te risks that you can't get rid of are really terrible risks"
Felix and Mihir discuss the turmoil in financial markets and how best to respond as an investor or a corporate executive. Is it time to panic? What is the longer-term outlook for the economy? Will the Federal Reserve be able to tame inflation without causing a recession? They also discuss the fate of Upstart, an AI-supported lending platform. The former Wall Street darling lost much of its value, seemingly overnight. Can Upstart recover? Are we really better off with more consumer credit?