It’s Fed Day (Again)!

The guys once again turn their attention to Jerome Powell, Janet Yellen, and what the Fed will do in the wake of the recent bank failures. They dive into the global effects of those collapses including what happened with Credit Suisse and then look at what we can learn from the cyclical nature of human behavior.

Key Takeaways

[03:59] - How do banks actually work? [09:09] - How does the government determine what banks are “important”? [10:50] - What happened with Credit Suisse? [18:49] - Lessons learned from the repetition of human behavior

Quotes

“Banks are not going to want to loan in this environment with the fear that people may have a run on their bank too. They may be the next dominant fall. Lending is just going to be a little bit more stringent in this environment, which curbs economic growth because we're a credit-based society; businesses [and individuals] borrow money to invest and grow.” - Doug Stokes