Jim Bianco on Why the Banking System Has Always Been Broken - Ep. 469

Unchained

Laura Shin

News, Tech News, Business News

4.6 • 1.3K Ratings

🗓️ 17 March 2023

⏱️ 45 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

Jim Bianco, president and macro strategist at Bianco Research, explains what’s causing the recent cascade of bank failures. Yield seekers taking their money elsewhere are putting banks under strain. However, the Signature Bank takeover by New York regulators is “a little fishy,” Bianco says. He adds that DeFi has been holding up strong, providing an “alternative to this unstable system that we have right now.” Listen to the episode on Apple Podcasts, Spotify, Overcast, Podcast Addict, Pocket Casts, Stitcher, Castbox, Google Podcasts, TuneIn, Amazon Music, or on your favorite podcast platform. Show highlights: why Jim thinks this is a liquidity crisis, not a solvency crisis the role of crypto and tech startups in the recent bank run how people have been pulling out of crypto in the past 18 months why the traditional fractional reserve system for banks is broken why crypto projects like Aave and Compound are solutions why Jim says the Fed is a “legal counterfeiter” why money moving around so fast is a challenge to our antiquated financial system whether Signet, Signature Bank’s digital payments platform, is the real reason why regulators shut the bank down whether the Fed will succeed or fail with FedNow, its instant payment system Thank you to our sponsors! Crypto.com Railgun DAO Guest Jim Bianco, President and founder of Bianco Research Links Unchained: The Fall of SVB: What Happened and How It Affects Crypto Was Signature Bank Actually Insolvent? Circle to Bring On New Banking Partner for USDC Minting, Redemption Regulators Close Signature Bank Following SVB Collapse Silvergate to Wind Down Operations in ‘Voluntary Liquidation’ CNBC: Long-awaited Fed digital payment system to launch in July Ram Ahluwalia’s tweet on the Fed Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Hi, everyone. Welcome to Unchained, your no hype resource for all things crypto. I'm your host,
0:08.5	Laura Shin, author of The Cryptopians. I started covering crypto seven years ago, and as a senior
0:14.0	editor at Forbes was the first mainstream media reporter to cover cryptocurrency full-time.
0:18.4	This is the March 17th, 2023 episode of Unchained. Ever wanted to use DeFi without being tracked?
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0:46.8	With the crypto.com app, you can buy, earn, and spend crypto in one place. Download and get
0:52.1	$25 with the code Laura, link in the description.
0:57.5	This episode is brought to you by Nike. It's packed to school season, and you and your child might
1:03.0	be feeling a bit anxious. As a parent, you're the best teammate for your mini-me, and together
1:08.4	you can use sport to help overcome anxiety. Try something new as a family and celebrate even the
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1:24.6	Strains and things. Strings and things. Strings and things. Strings and things. Strings and things. Strings and things. Strings and things. Strings and things. Strings and things. Strings and things. Strings and things. Strings and things. Strings and things. Strings and things. Strings and things. Strings and things. Strings and things. Strings and things. Strings and things. Strings and things. Strings and things. Strings and things. Strings and things. Strings and things. Strings and things. Strings and things. Strings and things. Strings and things. Strings and things. Strings and things. Strings and things. Strings and things. Strings and things. Strings and things. Strings and things. Strings and things. Strings and things. Strings and things. Strings and things. Strings and things. Strings and things. Strings and things. Strings and things. Strings and things.
1:54.6	Strings and things. Strings and things. Strings and things. Strings and things. Strings and things. Strings and things. Strings and things. Strings and things. Strings and things. Strings and things. Strings and things. Strings and things. Strings and things. Strings and things. Strings and things. Strings and things. Strings and things. Strings and things. Strings and things. Strings and things. Strings and things. Strings and things. Strings and things. Strings and things. Strings and things. Strings and things. Strings and things. Strings and things. Strings and things. Strings and things. Strings and things. Strings and things. Strings and things. Strings and things. Strings and things. Strings and things. Strings and things. Strings and things. Strings and things. Strings and things. Strings and things. Strings and things. Strings and things. Strings and things. Str
2:24.6	I'm going to use a fancy term and then I'm going to try and define it.
2:27.8	This is a liquidity crisis, not a solvency crisis.
2:30.3	Now what does that mean?
2:31.8	This is nothing like 2008.
2:33.3	In 2008, banks made loans and they bought securities, then they lost a ton of money on them,
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