Honestly with Bari Weiss Bank Runs, Crypto Scams and World-Transforming AI with Tyler Cowen
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Mar 21, 2023 
Tyler Cowen, a prominent economist and author, returns to discuss the recent turmoil in the banking sector, particularly the collapse of Silicon Valley Bank. He analyzes the psychology behind bank runs and the impact on public trust in financial institutions. The conversation shifts to the allure of cryptocurrency during crises and the potential of AI as a transformative force. Cowen also reflects on his interactions with notable figures like Sam Bankman-Fried, while offering insights on the economic landscape, inflation, and the challenges facing the tech industry.
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Inflation Progress and Challenges
- US inflation improved, dropping from 8-9% to 4-5%.
- However, returning to the 2% target appears challenging, increasing stagflation risks.
Reasons for SVB Collapse
- Silicon Valley Bank's (SVB) collapse stemmed from mismanagement, high uninsured deposits, and a tightly connected depositor network.
- Rapid communication among tech-savvy depositors facilitated a swift bank run.
Personal Experiences During Bank Runs
- Bari Weiss received warnings from VCs about potential small bank collapses.
- Cowen admits to moving some funds to a larger bank but emphasizes the government's history of bailouts.
