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Dan Snow's History Hit

A Short History of Bank Collapses

Dan Snow's History Hit

History Hit

History

4.712.9K Ratings

🗓️ 21 March 2023

⏱️ 30 minutes

🧾️ Download transcript

Summary

Looking back at the past few weeks, it seems like banks are collapsing left, right and centre; but what exactly does this mean for us? Are these inconsequential blips on the financial radar, or will they herald the beginning of a major banking crisis? On today's episode, Dan is joined by Charles Read, who teaches economics and history at the University of Cambridge, to walk us through why these collapses happen, whether they can be predicted, and what their repercussions are.


Produced by James Hickmann and edited by Dougal Patmore.


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Transcript

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0:00.0

As a house cat, I've grown accustomed to being spoiled.

0:02.6

But since my humans subscribe to the Guardian newspaper, they spend too much time reading.

0:07.2

Nowadays they get the newspapers delivered, so they cover the bed with supplements and

0:11.2

um, cast out.

0:13.2

I used to be worshipped.

0:14.6

Now all they worshipped is having up to 50% off their newspaper subscription to the Guardian

0:18.9

and Observer.

0:20.2

Search Guardian newspaper subscriptions to learn more.

0:22.5

Offer ends 21st of May 2023, open to UK and Overline and Residence, age 18 plus for

0:26.4

full subscription terms and conditions visit the Guardian.com slash subscription slash terms.

0:56.4

Limited reprecations and other times pretty gigantic ones.

1:01.3

The man to tell us all about it is Charles Reed, he's been on this podcast before.

1:04.9

He came up to a previous book in which he talks about how government policies can cause

1:09.6

a borrowing crisis.

1:11.5

That was well timed because the British government caused borrowing crisis in the autumn

1:15.8

of the fall of last year.

1:17.6

In the first half of March 2023, Charles published a new book.

1:22.2

This was a book about how rapid interest rate rises, caused financial crises and banking

1:25.6

collapses over the last 200 years in Britain.

1:28.9

The following day, Silicon Valley Bank collapsed thanks in large part to the Fed's rapid

1:34.5

tightening of interest rates.

1:36.4

So I begged Charles to write his next book about something happy and positive and constructive.

...

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