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
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
Comments
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Well, I guess I’m finally not the only one saying Climate Breakdown is the key phrase…
” …In sober language, the IPCC set out the devastation that has already been inflicted on swathes of the world. Extreme weather caused by climate breakdown has led to increased deaths from intensifying heatwaves in all regions, millions of lives and homes destroyed in droughts and floods, millions of people facing hunger, and “increasingly irreversible losses” in vital ecosystems… ”
https://www.theguardian.com/environment/2023/mar/20/ipcc-climate-crisis-report-delivers-final-warning-on-15c
This phrase should have been used instead of “global warming,” starting decades ago…
This comment is a call to do so immediately as it transparently, consistently, and portably frames the problem. Having done that, it would be very useful to tie, in detail, the impacts that problems in the fundamental technology (money) would have with our ability to feed ourselves (thereby averting widespread chaos) as Climate Breakdown strongly curtails the food supply.
An important adjunct may also be impacts to medical technologies.
Ultimately, it will be about preventing chaos, and having done that, preventing armed raiding, as Anthropology knows that this is the nature of “village life.” Can governments understand this during the “Simplification” and provide useful response?