Economy featured

A Bigger Boat

March 20, 2023

Recorded March 15, 2023

Description

In this Frankly, Nate shares some context about how he thinks about the recent global banking and financial market news. How do the catalysts triggering the SVB collapse compare to the 2008 financial crisis? What might world financial market reactions indicate as we move closer to The Great Simplification? What can we learn and proactively plan for by taking a balanced, comprehensive view of the global financial system and banking? One thing to be sure of: world governments and central banks “are gonna need bigger boats” as more and more entities require bailouts and guarantees. Eventually that ‘boat’ may become so big that it will be “Too Big to Save”.

Show Notes

00:07 – Frankly #25

00:22 – Silicon Valley Bank and Credit Suisse 

01:51 – The Four Horsemen

03:08 – Financial Leverage

03:15 – Positive Yield Rate

03:55 – 18 trillion dollars worth of bonds in negative interest rates in 2020

06:21 – Solvency issues of 2008/2009 bank failures

06:24 – US Government bailout of depositors in SVB failure

06:56 – 100 basis point drop in federal funds rate ending point on the tightening cycle

07:33 – FDIC Insurance Amount

08:33 – Russian-Ukraine War’s Effects on Europe’s resource access

08:59 – Germany’s deficit increase

10:03 – Lehman Brothers, Too Big To Fail

10:24 – JP Morgan

Youtube Link here

 

Teaser photo credit: By kees torn – MAERSK MC KINNEY MÖLLER & MARSEILLE MAERSK, CC BY-SA 2.0, https://commons.wikimedia.org/w/index.php?curid=82090447

Nate Hagens

Nate Hagens

Nate Hagens is the Director of The Institute for the Study of Energy & Our Future (ISEOF) an organization focused on educating and preparing society for the coming cultural transition. Allied with leading ecologists, energy experts, politicians and systems thinkers ISEOF assembles road-maps and off-ramps for how human societies can adapt to lower throughput lifestyles. Nate holds a Masters Degree in Finance with Honors from the University of Chicago and a Ph.D. in Natural Resources from the University of Vermont. He teaches an Honors course, Reality 101, at the University of Minnesota.

Tags: banking system, financial bailouts