We Study Billionaires - The Investor’s Podcast Network

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

Mar 28, 2023

51:50

AI Chapters

Episode notes

Introduction

2min

Silvergate's Financing Crisis

4min

The Impact of Rising Interest Rates on Banks

5min

The Magnitude of Bank Failures in Just Five Days

5min

The Federal Reserve's Response to Bank Failures

6min

Concierge Onboarding for Bitcoin Security

2min

How to Invest in Real Estate With Equity Multiple

2min

The Importance of FDIC Insurance

4min

Credit Suisse's Sale to UBS

3min

10.

The Fed's Next Rate Hiking Decision

5min

11.

The Fed's Outlook on Interest Rates

4min

12.

The Importance of Time in Investing

6min

13.

The Joys of Compounding

5min

14.

How to Be a Better Investor in Uncertain Times

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.

NEW TO THE SHOW?

Check out our We Study Billionaires Starter Packs.
Browse through all our episodes (complete with transcripts) here.
Try our tool for picking stock winners and managing our portfolios: TIP Finance Tool.
Enjoy exclusive perks from our favorite Apps and Services.
Stay up-to-date on financial markets and investing strategies through our daily newsletter, We Study Markets.
Learn how to better start, manage, and grow your business with the best business podcasts.

SPONSORS

Support our free podcast by supporting our sponsors:

HELP US OUT!

Help us reach new listeners by leaving us a rating and review on Apple Podcasts! It takes less than 30 seconds, and really helps our show grow, which allows us to bring on even better guests for you all! Thank you – we really appreciate it!

Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm