Codie SanchezFounder @ Contrarian Thinking

How This Bank Collapse Is Bad For You! #shorts

13 Mar 2023 · 1 min

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0:54

Codie Sanchez (YouTube short) explains why Silicon Valley Bank's failure matters to ordinary people, warning of financial "contagion" and drawing on her experience at Goldman during the Lehman collapse. She summarizes how banks fail (loss of depositor trust, overextension through lending) and offers direct personal-finance steps: keep money in liquid/traditional banks and diversify, avoid unnecessary risks, draw corporate debt lines for liquidity, and raise savings/diversify income.

Chapters

What does Silicon Valley bank's failure mean for you as a normal everyday human? Potentially a lot. One word contagion. I was at Goldman in 2007 and 2009 when Lehman fell and we watched contagion spread across the banks. Banks fail when people don't trust them to give their money back because they have overextended themselves AKA they loaned out too much money called credit and bad decisions. People don't think they have enough cash to make good on their debts. What should you do about it? First, hold your money in the most liquid and traditional bank. Even better if you diversify across them. Second, don't take unnecessary risks. If you need money in your business, this would be the time to call every debt line. Get as much cash as you can. Be willing to make concessions. Money is no longer a commodity, now it's king again. Keep your savings high, diversify income streams. It will be harder to get cash than to get the new Nike sneaker drop in the future.