Dave Ramsey on the collapse of SVB

 

[VIDEO] I haven't read too much on this particular issue. What I know about this is that the mgmt at Silicon Valley Bank seemed to have done a bad job of insuring they had enough money on hand to stay afloat. They also put a lot of money into investments that don't mature until years later, which also means well they still don't have enough money on hand for lending and deposits.

Of course if you follow Tucker or Glenn Beck they make this about the economy under Joe Biden. They make this about the wokeness that pervades the work culture at these banks. And of course back to the starting point that I made, the bank was mismanaged especially the money was mismanaged.

I think Dave Ramsey calls it down the middle. If you're worried about the banking system don't worry about it. It wasn't just Silicon Valley that failed it's also Signature Bank. He mainly puts the crisis in terms of both of these banks that what allowed them to collapse and be taken over by the Federal Gov't isn't very pervasive in other banks such as Chase. According to him so far the public still has faith in Chase and hopefully other banks. 

Also I understand both of those banks I mentioned that failed mostly catered to tech industry startups. Alas another contribution to these failures may have been the cyclical nature of the tech industry. It seems solid but let's not forget they're prone to layoff and downturns also.