How accelerating bank deposit withdrawals could harm the economy, including real estate prices. How dollars slosh around the financial system but always seem to end up at the Federal Reserve. Topics covered include: Show Notes Factors Affecting Reserve Balances of Depository Institutions and Condition Statement of Federal Reserve Banks—The Federal Reserve Assets and Liabilities of Commercial Banks in the United States—The Federal Reserve All U.S. Banks Net Interest … [Read more...]
424: Are More Bank Runs Coming? The Collapse of Silicon Valley Bank
What caused Silicon Valley Bank to collapse in only 44 hours, and how likely will the contagion spread leading to other bank failures? Topics covered include: Show Notes Silicon Valley Bank launches $2.25bn share sale to shore up capital base by Joshua Franklin and Antoine Gara—The Financial Times US Bank Capital Regulation: History and Changes Since the Financial Crisis by John Walter—Economic Quarterly SVB's 44-Hour Collapse Was Rooted in Treasury Bets During the … [Read more...]
414 Plus: Emerging Markets Latin America Stocks, Bank Safety and Investing Lump Sums
In Plus episode 414, we review the current valuations of Latin American stocks, deconstruct historical performance, and develop estimates for returns over the next decade. We review ETFs for investing in Latin American stocks and consider the risks. We also review how to decide if a high-yield savings account at a bank is safe and how to be protected. Finally, we review investing a lump sum payment all at once or dollar cost averaging. Become a Member If you would like to … [Read more...]
305: Are Banks Safe?
Is a bank collapse coming due to bank exposure to collateralized loan obligations as defaults increase? Topics covered include Show Notes The Looming Bank Collapse by Frank Partnoy—The Atlantic Understanding Collateralized Loan Obligations (CLOs)—Guggenheim Vulnerabilities associated with leveraged loans and collateralised loan obligations—Financial Stability Board Who Owns U.S. CLO Securities? An Update by Tranche by Laurie DeMarco, Emily Liu, Tim … [Read more...]
297: How To Protect Your Savings
How to protect your savings from monetary threats like devaluation. Why high yield savings accounts exist and are they worth it. Topics covered include: Why Lebanon defaulted on its national debt and announced it will devalue its currency by 57%.Why some depositors in Lebanon will probably lose some of their bank savings.What investors can do to protect themselves from currency devaluations.What are stablecoins and why are they useful.Why some online banks pay above-average interest … [Read more...]
270: Repo Rates Soared—Here’s Why It Matters
How a liquidity crunch in the short-term lending markets sent interest rates soaring. Why this is a huge blunder on the part of the Federal Reserve, and what it means for us as individual investors. In this episode you’ll learn: Show Notes New York Fed injects $66bn into short-term lending markets by Joe Rennison—Financial Times Repo and Reverse Repo Agreements—Federal Reserve Bank of New York Repo Rate Spike: A ‘Tail’ Of Low Liquidity by Jerome M. Schneider, William … [Read more...]
MNY094 Plus: Banks, Loans, and Smart Beta Conditions
This week on Money For the Rest of Us Plus I discuss how central banks influence lending, what is causing the bank stock sell off, and what are some future enhancements to the Hub pertaining to smart beta and investment conditions. The episode length is 17 minutes. … [Read more...]
94: How Money Is Created and Destroyed
How federal governments allow banks to create the vast majority of the world's money supply, and why that erodes the value of money over time. In this episode you'll learn: What is financial intermediation.What is fractional reserve banking.How banks create money through creative accounting.How banks decide how much money to create through their lending decisions.How central banks try to control the amount of lending.Why federal governments can create money in theory but don't do so … [Read more...]
