We Study Billionaires - The Investor’s Podcast Network

TIP539: The Banking Crisis Explained w/ Shawn O'Malley

Mar 28, 2023

In this conversation, Shawn O'Malley, chief editor and writer of a daily financial markets newsletter, shares his insights on the recent banking crisis. He discusses the fallout from bank failures like Silicon Valley Bank and Credit Suisse's emergency sale. Shawn explains how rising interest rates have shaken investor confidence and outlines the Federal Reserve's efforts to stabilize the situation. He also offers strategies for navigating current market volatility and finding security in investments such as money market funds.

51:50

Episode guests

Shawn O'Malley

AI Chapters

Episode notes

Intro

2min

Banking Crisis Unveiled

18min

Banking Power Dynamics and Bitcoin Security

10min

Collapse and Consequences: The Credit Suisse Crisis

12min

Navigating Payroll Tax Refunds and Investment Insights

3min

Navigating Market Volatility

8min

Exploring Financial Strategies and Market Insights

3min

On today’s episode, Clay sits down with Shawn O’Malley to provide an update on the banking crisis. For months, many have said that the Fed will continue hiking interest rates until “something breaks”. Shawn breaks down why it feels like the Fed broke something, and what it means for investors.

Shawn is the chief editor and writer of our daily financial markets and investing newsletter. He aims to bring a value investor’s perspective to understanding current events.

IN THIS EPISODE YOU’LL LEARN:

00:00 - Intro

00:07:18 - What led to the recent bank failures of Silvergate, Silicon Valley Bank, and Signature.

000:16:03 - How the Federal Reserve responded to prevent a collapse of the banking system.

00:18:07 - How each crisis is setting a precedent and making impacts in the crises that proceed it.

00:30:19 - Why Credit Suisse was forced to sell to UBS for pennies on the dollar.

00:33:27 - What the recent drop in treasury yields means for markets.

00:46:43 - How investors can prepare themselves for this difficult economic environment.

00:52:05 - How investors should view money market funds in light of recent events.

Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.

BOOKS AND RESOURCES

Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Stig, Clay, and the other community members.
Follow Shawn on Twitter.
Tune into our previous episode covering The Joys of Compounding.
Check out our recent episode covering Mark Leonard's Letters and Constellation Software.
Follow Clay on Twitter.

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