The guys once again turn their attention to Jerome Powell, Janet Yellen, and what the Fed will do in the wake of the recent bank failures. They dive into the global effects of those collapses including what happened with Credit Suisse and then look at what we can learn from the cyclical nature of human behavior.
Key Takeaways
[03:59] - How do banks actually work?
[09:09] - How does the government determine what banks are “important”?
[10:50] - What happened with Credit Suisse?
[18:49] - Lessons learned from the repetition of human behavior
Quotes
“Banks are not going to want to loan in this environment with the fear that people may have a run on their bank too. They may be the next dominant fall. Lending is just going to be a little bit more stringent in this environment, which curbs economic growth because we're a credit-based society; businesses [and individuals] borrow money to invest and grow.” - Doug Stokes
“Just from a macro standpoint, even though it was absolutely a bailout in terms of those two bank failures, the system on the whole would have really experienced a lot of stress. So even though it was a bailout, I think it probably was necessary to avert a bigger crisis.” - Greg Stokes
Links
Axios: Feds Raise Rates Again, Despite Bank Failures
CNBC: Credit Suisse-USB, A Financial Banana Republic
Truflation
WSJ: Yellen Says U.S. Could Move to Protect Deposits at Other Banks
Reuters: Bill Hwang’s History With Credit Suisse
WSJ: JPMorgan Bought Nickel That Turned Out to Be Stones
The World’s Oldest Complaint Letter
Just Keep Buying by Nick Maggiulli
David Senra: Lessons from Dinner With Charlie Munger
Connect with our hosts
Doug Stokes
Greg Stokes
Stokes Family Office
Subscribe and stay in touch
Apple Podcasts
Spotify
Google Podcasts
lagniappe.stokesfamilyoffice.com
Disclosure
The information in this podcast is educational and general in nature and does not take into consideration the listener's personal circumstances. Therefore, it is not intended to be a substitute for specific, individualized financial, legal, or tax advice. To determine which strategies or investments may be suitable for you, consult the appropriate, qualified professional prior to making a final decision.
