So one thing that has been a Big Question for a lot of people lately is the question of deposit insurance, and the concept of money.What does it mean that SVB got technically bailed out? Are all the banks going to be implicitly bailed out now? Whose deposits are okay? What is the point of the banking system if everything is insulated?Is money… safe?And this gets into this really funky space of “What is Money” because turns out, there are a lot of views on how money circulates, whether or not bank deposits are government money, and why there are these behemoths that can take a public good (money) and go and be mad silly with private risk taking for private profit?And of course, people start yelling at this point.“The entire economy is built on fractional reserve banking! Money is created through lending! Your checking account is a liability of the bank!”All of which is true! Doesn’t make it any less weird!Full article: https://kyla.substack.com/p/communication-the-other-side-of-theBlog: https://kyla.substack.com Linkedin: https://www.linkedin.com/in/kylascanlon/ TikTok: https://www.tiktok.com/@kylascan?Twitter: https://twitter.com/kylascan Instagram: https://www.instagram.com/kylascan/?h... All materials in these videos are used for educational purposes and fall within the guidelines of fair use. No copyright infringement intended. If you are or represent the copyright owner of materials used in this video and have a problem with the use of said material, please contact me.DISCLAIMER: This video does not provide investment or economic advice and is not professional advice (legal, accounting, tax). The owner of this content is not an investment advisor. Discussion of any securities, trading, or markets is incidental and solely for entertainment purposes. Nothing herein shall constitute a recommendation, investment advice, or an opinion on suitability. The information in this video is provided as of the date of its initial release. The owner of this video expressly disclaims all representations or warranties of accuracy. The owner of this video claims all intellectual property rights, including copyrights, of and related to, this video.

The Fed overtightened and did so way too fast. And now it's becoming obvious. The Fed Funds rates needs to be somewhere closer to 3-4% but they painted themselves into a corner so now they have to own the policy mistake.The Fed faces one of its toughest calls in years: whether to raise rates again to fight stubbornly high inflation or take a timeout amid the [most intense banking crisis since 2008.]Spread between short and long-dated rates vol shows traders are now more uncertain about near term Fed policy path than they have ever been Full notes: https://www.notion.so/kylascan/Silicon-Valley-Bank-3dba234141cc4c3889a1e6a13a52bec9 Blog: https://kyla.substack.com Linkedin: https://www.linkedin.com/in/kylascanlon/ TikTok: https://www.tiktok.com/@kylascan? Twitter: https://twitter.com/kylascan Instagram: https://www.instagram.com/kylascan/?h... All materials in these videos are used for educational purposes and fall within the guidelines of fair use. No copyright infringement intended. If you are or represent the copyright owner of materials used in this video and have a problem with the use of said material, please contact me. DISCLAIMER: This video does not provide investment or economic advice and is not professional advice (legal, accounting, tax). The owner of this content is not an investment advisor. Discussion of any securities, trading, or markets is incidental and solely for entertainment purposes. Nothing herein shall constitute a recommendation, investment advice, or an opinion on suitability. The information in this video is provided as of the date of its initial release. The owner of this video expressly disclaims all representations or warranties of accuracy. The owner of this video claims all intellectual property rights, including copyrights, of and related to, this video.

All links: https://kyla.substack.com/p/the-takeconomy/comments

Main takeaways  Fed is “prepared to address any liquidity pressures that may arise” - workaround for unrealized losses and the fed saw potential systemic risk  "The Fed is explicitly trying to tighten financial conditions, but also has responsibilities to promote a stable banking system. A liquidity facility for banks that ignores losses from rate hikes is uniquely positioned to walk that line." - Steven Kelly  The $250K deposit insurance cap is not really useful anymore  It's kind of a bailout  All notes here: https://kylascan.notion.site/Silicon-Valley-Bank-3dba234141cc4c3889a1e6a13a52bec9 00:00 - Intro 00:09 - How Money Works 00:42 - How Banking Works 01:47 - SVB Update 04:38 - Whats Next?  Blog: https://kyla.substack.com  Linkedin: https://www.linkedin.com/in/kylascanlon/  TikTok: https://www.tiktok.com/@kylascan? Twitter: https://twitter.com/kylascan  Instagram: https://www.instagram.com/kylascan/?h...   All materials in these videos are used for educational purposes and fall within the guidelines of fair use. No copyright infringement intended. If you are or represent the copyright owner of materials used in this video and have a problem with the use of said material, please contact me.  DISCLAIMER: This video does not provide investment or economic advice and is not professional advice (legal, accounting, tax).  The owner of this content is not an investment advisor.  Discussion of any securities, trading, or markets is incidental and solely for entertainment purposes.  Nothing herein shall constitute a recommendation, investment advice, or an opinion on suitability.  The information in this video is provided as of the date of its initial release.  The owner of this video expressly disclaims all representations or warranties of accuracy.  The owner of this video claims all intellectual property rights, including copyrights, of and related to, this video.

All my notes and citations are here - I am reading from several sources during this video  The second-biggest bank failure in U.S. history after a run on deposits doomed the tech-focused lender’s plans to raise fresh capital. The FDIC just took control. The bank was the 16th largest in the U.S., with some $209 billion in assets as of Dec. 31  Silicon Valley Bank has been around since 1983. primarly works with vc backed companies - the banking partner for nearly half of U.S. venture-backed technology and healthcare companies that listed on stock markets in 2022.   So it was four main things  1. The fed raising rates blew out their holdings - but their holdings were sort of risky 2. startups stopped depositing because vc funding dried up  3. new investment also stopped bc vc funding dried up 4. ceo made stuff worse + vcs started screaming  https://kylascan.notion.site/Silicon-Valley-Bank-3dba234141cc4c3889a1e6a13a52bec9  00:00 - Intro 00:21 - Silicon Valley Bank 00:39 - Four Things 03:40 - How did this happen? 06:41 - What now?  Blog: https://kyla.substack.com  Linkedin: https://www.linkedin.com/in/kylascanlon/  TikTok: https://www.tiktok.com/@kylascan? Twitter: https://twitter.com/kylascan  Instagram: https://www.instagram.com/kylascan/?h...   All materials in these videos are used for educational purposes and fall within the guidelines of fair use. No copyright infringement intended. If you are or represent the copyright owner of materials used in this video and have a problem with the use of said material, please contact me.  DISCLAIMER: This video does not provide investment or economic advice and is not professional advice (legal, accounting, tax).  The owner of this content is not an investment advisor.  Discussion of any securities, trading, or markets is incidental and solely for entertainment purposes.  Nothing herein shall constitute a recommendation, investment advice, or an opinion on suitability.  The information in this video is provided as of the date of its initial release.  The owner of this video expressly disclaims all representations or warranties of accuracy.  The owner of this video claims all intellectual property rights, including copyrights, of and related to, this video.

Jerome Powell testified in front of Congress this week and the main takeaway was “we are absolutely going to keep ripping rates if we need to - and it looks like we need to.” On the second day of his testimony, he walked back a bit stating -  "If — *and I stress that no decision has been made on this* — if the totality of the data were to indicate that faster tightening is warranted, we would be prepared to increase the pace of rate hikes."  Elizabeth Warren posed a question that pretty much everyone has been asking for the past few months - “what about the labor market?”  “What do you say to the 2 million people who you plan to put out of work with your rate hikes?” Jerome Powell then explained that well, if we don’t fix inflation now, it’s going to be a lot higher than 2 million down the road. The idea is that by not nipping inflation in the bud, the consequences to the labor market will be extreme.  So the Fed is balancing both the labor market and price stability, trying to make sure that they can get inflation down with their rate hike cannon but also trying to make sure that the projectiles that they are firing into the economy don’t hurt anyone that bad.   Full article: https://kyla.substack.com/p/labor-market-vs-inflation  Open a Treasury Account at Public.com and get a 5.3%* yield on your cash at public.com/kyla   * 26-week T-bill rate (as of 2/14/2023) when held to maturity. Rate shown is gross of fees.  ** The average of the best high-yield savings accounts, compiled by Bankrate.com as of 1/31/23, is 4.0% APY.   Disclosures: This is a paid endorsement for Open to the Public Investing, Inc., member FINRA & SIPC. This does not constitute investment advice. Investing involves the risk of loss, including loss of principal. Full disclosures can be found at public.com/disclosures. All U.S. treasury investments and investment advisory services offered on Public are provided by Jiko Securities, Inc., a registered broker-dealer, member FINRA and SIPC. This material is not intended as a recommendation, offer or solicitation for the purchase or sale of any security or investment strategy. See FINRA BrokerCheck, Jiko U.S. Treasuries Risk Disclosures and Jiko Securities Inc. Form CRS.   Investments in T-bills: Not FDIC Insured - No Bank Guarantee - May Lose Value
Banking services provided by Jiko Bank, a division of Mid-Central National Bank   Blog: https://kyla.substack.com   Linkedin: https://www.linkedin.com/in/kylascanlon/   TikTok: https://www.tiktok.com/@kylascan?  Twitter: https://twitter.com/kylascan  Instagram: https://www.instagram.com/kylascan/?h...    All materials in these videos are used for educational purposes and fall within the guidelines of fair use. No copyright infringement intended. If you are or represent the copyright owner of materials used in this video and have a problem with the use of said material, please contact me.   DISCLAIMER: This video does not provide investment or economic advice and is not professional advice (legal, accounting, tax).  The owner of this content is not an investment advisor.  Discussion of any securities, trading, or markets is incidental and solely for entertainment purposes.  Nothing herein shall constitute a recommendation, investment advice, or an opinion on suitability.  The information in this video is provided as of the date of its initial release.  The owner of this video expressly disclaims all representations or warranties of accuracy.  The owner of this video claims all intellectual property rights, including copyrights, of and related to, this video.

full article: https://kyla.substack.com/p/why-the-data-makes-no-sense

full transcript at kyla.substack.com 

full article: https://kyla.substack.com/p/no-landing-and-the-anti-gravity-economy

full article: https://kyla.substack.com/p/margin-and-opportunity