6min chapter

The Munk Debates Podcast cover image

Friday Focus: Banking Blowup – Iran & Saudi – Eminent Canadians

The Munk Debates Podcast

CHAPTER

What's the Moral Hazard of Putting Your Money in a Bank?

Every depositor now is fully insured for all intents purposes if they're in anything but a mom and pop local bank. Twenty-two trillion dollars worth of assets now effectively guaranteed by the full faith and credit of the US government. The Silicon Valley bank was giving mortgages at low rates for these investors to buy multi-million dollar homes in Silicon Valley. If this doesn't infuriate middle America, nothing will frankly.

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