1973: Housing Inventory Falls, Silicon Valley Bank Collapse, Moral Hazard, Mismanaged Portfolio, Improper Risk Management, Alfonso Peccatiello
03/15/23 • 51 min
Alf is Italian but is coming today from the Netherlands. He and Jason talk about some of the factors that contributed to the collapse of the Silicon Valley Bank, the largest bank failure since the 2008 financial crisis. They discuss the moral hazard involved, mismanaged portfolios and the lack of proper risk management- factors that culminated on the banks demise, making investors question whether this will spark a broader banking meltdown.
Key Takeaways:
Jason's editorial
1:21 Hope you enjoyed last episode
2:03 Listen to Jason's "10 commandments of successful investing": Thou shalt maintain control!
4:38 Housing inventory keeps falling- where's the crash?
7:10 Almost 25% of mortgages are 3% or lower
8:19 On to our guest with a deep dive into the current banking crisis
Alfonso Peccatiello interview
9:14 Alf, coming from the Netherlands
10:03 3 Bank collapses; a summary of what really happened
13:42 US Banks loan-to-deposit ratios
16:06 Moral Hazard and a mismanaged portfolio
19:16 Big banks hedge interest rate risks- NOT SVB
22:28 Lax regulatory and accounting laws in the US for small banks
23:34 Who benefited from the collapse
24:36 Securities portfolio mix as of December 31, 2022; distinguishing between small and highly regulated banks
29:29 SVB 'woke' programs and the lack of proper risk management
30:39 Bank failures 2001 to 2023; are more bank collapses coming
31:56 At risk: the real estate market; unaffordable housing leads to more renters
34:50 Compared to what
37:43 The booming labor market
39:02 Credibility & central banks; Blackstone & KKR, Jerome Powell & Paul Volcker
44:25 There is no distressed home owner
48:10 Institutional investors- what their capital stack or debt structure is like
49:32 Step up your macro game https://www.themacrocompass.com
Follow Jason on TWITTER, INSTAGRAM & LINKEDIN Twitter.com/JasonHartmanROI Instagram.com/jasonhartman1/ Linkedin.com/in/jasonhartmaninvestor/
Call our Investment Counselors at: 1-800-HARTMAN (US) or visit: https://www.jasonhartman.com/
Free Class: Easily get up to $250,000 in funding for real estate, business or anything else: http://JasonHartman.com/Fund
CYA Protect Your Assets, Save Taxes & Estate Planning: http://JasonHartman.com/Protect
Get wholesale real estate deals for investment or build a great business – Free Course: https://www.jasonhartman.com/deals
Special Offer from Ron LeGrand: https://JasonHartman.com/Ron
Free Mini-Book on Pandemic Investing: https://www.PandemicInvesting.com
Alf is Italian but is coming today from the Netherlands. He and Jason talk about some of the factors that contributed to the collapse of the Silicon Valley Bank, the largest bank failure since the 2008 financial crisis. They discuss the moral hazard involved, mismanaged portfolios and the lack of proper risk management- factors that culminated on the banks demise, making investors question whether this will spark a broader banking meltdown.
Key Takeaways:
Jason's editorial
1:21 Hope you enjoyed last episode
2:03 Listen to Jason's "10 commandments of successful investing": Thou shalt maintain control!
4:38 Housing inventory keeps falling- where's the crash?
7:10 Almost 25% of mortgages are 3% or lower
8:19 On to our guest with a deep dive into the current banking crisis
Alfonso Peccatiello interview
9:14 Alf, coming from the Netherlands
10:03 3 Bank collapses; a summary of what really happened
13:42 US Banks loan-to-deposit ratios
16:06 Moral Hazard and a mismanaged portfolio
19:16 Big banks hedge interest rate risks- NOT SVB
22:28 Lax regulatory and accounting laws in the US for small banks
23:34 Who benefited from the collapse
24:36 Securities portfolio mix as of December 31, 2022; distinguishing between small and highly regulated banks
29:29 SVB 'woke' programs and the lack of proper risk management
30:39 Bank failures 2001 to 2023; are more bank collapses coming
31:56 At risk: the real estate market; unaffordable housing leads to more renters
34:50 Compared to what
37:43 The booming labor market
39:02 Credibility & central banks; Blackstone & KKR, Jerome Powell & Paul Volcker
44:25 There is no distressed home owner
48:10 Institutional investors- what their capital stack or debt structure is like
49:32 Step up your macro game https://www.themacrocompass.com
Follow Jason on TWITTER, INSTAGRAM & LINKEDIN Twitter.com/JasonHartmanROI Instagram.com/jasonhartman1/ Linkedin.com/in/jasonhartmaninvestor/
Call our Investment Counselors at: 1-800-HARTMAN (US) or visit: https://www.jasonhartman.com/
Free Class: Easily get up to $250,000 in funding for real estate, business or anything else: http://JasonHartman.com/Fund
CYA Protect Your Assets, Save Taxes & Estate Planning: http://JasonHartman.com/Protect
Get wholesale real estate deals for investment or build a great business – Free Course: https://www.jasonhartman.com/deals
Special Offer from Ron LeGrand: https://JasonHartman.com/Ron
Free Mini-Book on Pandemic Investing: https://www.PandemicInvesting.com
Previous Episode
1972: Silicon Valley Bank Run, Runaway Inflation, Banking System Collapse, Protect Your Assets, Inflation Induced Debt Destruction
Listen in as Jason explains the debacle that is the Silicon Valley Bank collapse, the ripple effects it's having in the banking community, the poison pill the FED has placed in the housing market and how it has painted itself in a corner. He also talks about what the government can do, how you can use his patented Inflation Induced Debt Destruction strategy to come out on top in these uncertain times and how you can protect your assets. Just go to https://www.jasonhartman.com/Protect for more details.
Key Takeaways:
1:18 Silicon Valley Bank and Bank Run: Margin Call
2:47 Catch the Ron Paul FlashBack Friday episode and thanks to all who attended the Alabama Property Tour
3:11 Fear of Contagion and a taxpayer funded bailout; the tech dot com bubble
7:09 Children in adult bodies and a history of manias
8:28 The SVB crisis explained
10:37 Runaway inflation or banking system collapse, memes
12:45 Signature bank and Silvergate; SVB holdings compared to other banks
20:32 Alf from Twitter
21:25 US bank loan-to-deposit ratios
22:55 While SVB collapsed, top executive pushed "woke" programs
27:16 Memes and more memes; CNBC's Jim Cramer urged viewers to buy shares of SVB last month
30:41 Bank failures 2001 to 2023
32:17 SVB financial deposits, quarterly net change
33:35 SVB's insured versus uninsured deposits
34:08 Biggest bank failures and the FDIC
35:01 FREE class: CYA protect your assets, save taxes and estate planning
36:38 The decision to bail out SVB
38:13 What can we do; the 2 year treasury yield and Inflation Induced Debt Destruction
Mentioned:
https://www.jasonhartman.com/Protect
Follow Jason on TWITTER, INSTAGRAM & LINKEDIN Twitter.com/JasonHartmanROI Instagram.com/jasonhartman1/ Linkedin.com/in/jasonhartmaninvestor/
Call our Investment Counselors at: 1-800-HARTMAN (US) or visit: https://www.jasonhartman.com/
Free Class: Easily get up to $250,000 in funding for real estate, business or anything else: http://JasonHartman.com/Fund
CYA Protect Your Assets, Save Taxes & Estate Planning: http://JasonHartman.com/Protect
Get wholesale real estate deals for investment or build a great business – Free Course: https://www.jasonhartman.com/deals
Special Offer from Ron LeGrand: https://JasonHartman.com/Ron
Free Mini-Book on Pandemic Investing: https://www.PandemicInvesting.com
Next Episode
1974 FBF: 30 Mistakes Investors Make Preventing Financial Independence
Today's Flashback Friday is from episode 141 published last December 28, 2009.
During turbulent economic times, people can become their own worst enemy. The uncertainty of the stock market creates massive insecurity about our investment portfolios. These doubts are quite reasonable and it is time to stop trusting Wall Street and start being a direct investor by purchasing hard assets which are not subject to the greed, graft and manipulation of CEOs, investment bankers, fund managers and the government. Prudent investing is a prerequisite to The American Dream of financial freedom. Learn from the mistakes of others rather than “the school of hard knocks.” Tune in to this episode of The Creating Wealth Show as Jason reveals 30 fatal mistakes you must avoid in order to achieve financial independence and investing success. Upcoming shows will feature: Bradford B. Smart, author of Topgrading for Sales: World-Class Methods to Interview, Hire, and Coach Top Sales Representatives and Lisa Bromma, author of Wise Women Invest In Real Estate.
Follow Jason on TWITTER, INSTAGRAM & LINKEDIN Twitter.com/JasonHartmanROI Instagram.com/jasonhartman1/ Linkedin.com/in/jasonhartmaninvestor/
Call our Investment Counselors at: 1-800-HARTMAN (US) or visit: https://www.jasonhartman.com/
Free Class: Easily get up to $250,000 in funding for real estate, business or anything else: http://JasonHartman.com/Fund
CYA Protect Your Assets, Save Taxes & Estate Planning: http://JasonHartman.com/Protect
Get wholesale real estate deals for investment or build a great business – Free Course: https://www.jasonhartman.com/deals
Special Offer from Ron LeGrand: https://JasonHartman.com/Ron
Free Mini-Book on Pandemic Investing: https://www.PandemicInvesting.com
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