CNBC (April 3, 2023) – The collapse of Silicon Valley Bank, Signature Bank and Credit Suisse were a harsh reminder of how quickly a trusted institution could fail, putting billions of dollars at risk.
Over 550 banks have collapsed since 2001, according to the FDIC. So what exactly causes a bank to fail? And what implications does it have on the U.S. economy?
March 20, 2023: A selection of three essential articles read aloud from the latest issue of The Economist. This week, what’s wrong with the banks? Also, we ask whether Bibi will break Israel (10:39) and why men should get a good night’s sleep to ensure vaccines work properly (19:03).
Rising interest rates have left banks exposed. Time to fix the system—again
Only ten days ago you might have thought that the banks had been fixed after the nightmare of the financial crisis in 2007-09. Now it is clear that they still have the power to cause a heart-stopping scare. A ferocious run at Silicon Valley Bank on March 9th saw $42bn in deposits flee in a day. svb was just one of three American lenders to collapse in the space of a week. Regulators worked frantically over the weekend to devise a rescue. Even so, customers are asking once again if their money is safe.
When Israel’s best and brightest are up in arms it is time to worry
This should have been Israel’s moment. As it approaches its 75th birthday in April the risk of a conventional war with neighbouring Arab states, for decades an existential danger, is at its lowest since 1948. The last Palestinian intifada, or uprising against occupation, ended 18 years ago. Israel’s tech-powered economy is more successful and globally relevant than ever. Last year gdp per person hit $55,000, making it richer than the eu.
Vaccines get all the glory, but it is really the immune system that does the heavy lifting. Indeed, those with weak immune systems often benefit little from vaccines. Aware of this, researchers have long thought that people deprived of sleep also ought to benefit less from vaccines, as sleeping less is thought to reduce immune function. A new analysis reveals that this is clearly the case—though only in men.
Rising interest rates have left banks exposed. Time to fix the system—again
Only ten days ago you might have thought that the banks had been fixed after the nightmare of the financial crisis in 2007-09. Now it is clear that they still have the power to cause a heart-stopping scare. A ferocious run at Silicon Valley Bank on March 9th saw $42bn in deposits flee in a day. svb was just one of three American lenders to collapse in the space of a week.
Fed officials are considering the timeline of a potential slowdown in interest-rate hikes, according to a Wall Street Journal report. Bond yields moved off their highs.
Tesla’s stock has been in a tailspin. But if the electric-vehicle maker is able to navigate a few bumpy months, it will be a signal that it’s headed in the right direction.
A.M. Edition for Jan. 4. China has failed to live up to its end of a 2020 trade deal with the U.S., buying far fewer American products and services than promised.
But will President Biden retaliate and risk reigniting the trade war? WSJ’s Josh Zumbrun walks us through China’s lackluster spending and the options facing the White House as it considers its response. Luke Vargas hosts.
Cryptocurrencies like Bitcoin have been billed as a major disruptor to finance. But digital currencies issued by governments might be even more radical—they may even threaten the future of traditional banking.
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