The Real Culprit Behind the Banking Crisis

Stansberry Investor Hour

Stansberry Research

America, How, To, Crash, Money, Learn, Stansberry, Income, Research, Debt, Stocks, Porter, Business, Realestate, Banking, Investment, American, Investing, Invest, Howtosave, Sjuggerud, Ferris, Eifrig, Jubilee, Buck, Sexton, Market, Bonds, Churchouse, Savings, Options, Lashmet

4.4 • 677 Ratings

🗓️ 20 March 2023

⏱️ 66 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

This week, a Stansberry Investor Hour listener-favorite returns to the show... Kevin Duffy, editor of The Coffee Can Portfolio newsletter and hedge-fund manager, is back. And on his mind is the spectacular, near-overnight collapse of banks. But the foundation of this month's banking fiasco was laid years ago.

He explains how it all started... how Silicon Valley banks had risky loan books balanced with less-risky U.S. Treasurys... how banks' assets tripled during the two years of pandemic-driven government stimulus... and how the bond bubble burst and set off a chain reaction.

Kevin also shares that the root of the problem comes from the U.S.'s fractional-reserve banking system and reliance on the Federal Reserve and leverage. A simple way to understand the problems with today's banks is to list the characteristics of an ideal hedge fund. When that list is inverted, it describes a modern-day fractional-reserve bank.

➡️ Watch Here

Transcript

Click on a timestamp to play from that location

0:00.0	Hello and welcome to the Stansberry Investor Hour.
0:08.5	I'm your host, Dan Ferris.
0:10.0	I'm also the editor of Extreme Value and The Ferris Report, both published by Stansberry
0:14.7	Research.
0:15.7	And I'm Corey McLaughlin, editor of the Stansberry Daily Digest.
0:19.3	Today, Dan interviews Kevin Duffy,
0:21.1	co-founder of Baring Asset Management.
0:23.4	And today we'll talk about bank failures, lots of fun.
0:27.3	And remember, you can send us your feedback at
0:29.6	Feedback at InvestorHour.com and tell us what's on your mind.
0:33.0	That and more right now on the Stansberry Investor Hour.
0:47.8	So, Corey, anything more fun than a good old-fashioned bank failure? I don't know if there is.
0:57.2	Ooh, yeah. This, what a, what a time. A good old old fashion community bank run in Silicon Valley.
0:58.6	I mean, who can make it up?
0:59.8	Yeah, I know.
1:01.5	In Silicon Valley, of all places.
1:05.9	All that money, all those billionaires, and that's where we get the bank run.
1:08.5	Well, you know, it makes sense in a way.
1:11.7	Everybody's, you know, sitting in front of their computers or on their phones you know seeing all this news about uh you know this bank isn't solvent which it hadn't
1:18.9	been for several months but all of a sudden it becomes a thing and and uh a bank run happens
1:25.8	and everybody thinks they're so smart today but the same things happen
1:30.9	over and over for hundreds of years or you know however long you want to say the first
	...

Please login to see the full transcript.

Previous episode | Next episode

Disclaimer: The podcast and artwork embedded on this page are from Stansberry Research, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of Stansberry Research and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.