THE FAILURE OF SVB – IS FINANCIAL COLLAPSE COMING?

Silicon Valley Bank failed last Friday. In the video, we analyse the causes and the very simple financial mechanisms that inevitably led to this outcome. Can we be certain that this failure is the starting point of a broader, systemic crisis? Obviously not, because economics is a discipline that deals with individual choices and decisions, which are by definition free and unpredictable. However, the monetary system is characterised by inevitable cycles of boom, inflation and depression. The constant repetition of these cycles is a certainty, but it is impossible to predict when it will happen. When in doubt, and whilst waiting, it is advisable to identify certain protective strategies that could prove very useful if the situation of the 1930s, following the 1929 crisis, or the more recent one in Cyprus and Greece, were to repeat itself.