Like, Share & Subscribe! New content and interviews every day of the week. We love our community, and we want to hear from you! To listen to the full three-hour radio show, get the @siriusxm app and search “Karen Hunter Show.” Free Trial: Recent Bank Failures, Do We Need to Be Worried? Teri Williams w/ Karen Hunter Want to know more about Karen Hunter? Check out... for the latest news and updates. Follow Karen on Twitter at Shop The Global Majority: #KarenHunterShow #thrivethursday #svb #siliconvalley...(read more)
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Recent Bank Failures: Do We Need to Be Worried? Undoubtedly, the COVID-19 pandemic has wreaked havoc on various industries, with the banking sector not being an exception. Over the last several months, there has been an alarming increase in bank failures, particularly amongst smaller banks. In the US alone, 18 banks have failed since the beginning of this year. But does this mean that we should start worrying? To understand the situation better, we have to examine what causes bank failures in the first place. In essence, banks fail when they can no longer meet their financial obligations, whether it be due to mismanagement, fraud, or simply a lack of assets. For smaller banks, their biggest challenge is usually finding enough capital to stay afloat. With this in mind, it's safe to say that the pandemic has played a significant role in the recent bank failures we've seen. The pandemic has negatively impacted most businesses, with smaller banks being the hardest hit. The economic downturn has led to a significant decline in loan payments and decreased revenue from customer deposits, which in turn has deprived these banks of the necessary capital required to continue their operations. Furthermore, with the situation far from stable, these smaller banks are finding it challenging to attract new customers or investors. Despite the spate of bank failures, it's important to note that the banking sector in the US remains highly regulated. The Federal Reserve, in particular, has a dedicated department that monitors banks' financial health, and any warning signs of imminent failure are usually noticed and addressed before it's too late. Additionally, the FDIC, which stands for Federal Deposit Insurance Corporation, ensures that all deposits in insured banks are protected, even in the event of a bank's failure. As such, customers of affected banks don't lose their money. However, we cannot rule out the possibility of a domino effect occurring. With the increasing number of bank failures, there's a risk that customers' confidence in the banking sector may be eroded, leading to a withdrawal of deposits and investment. This, in turn, could lead to further failures and a general destabilization of the industry. To counter this, it's imperative that smaller banks and credit unions have access to government stimulus packages, loans, and other financial assistance to help them stay afloat during these trying times. Additionally, personnel in the banking sector need to be adequately trained to manage crises, handle customers, and develop strategies that can mitigate the impact of any future pandemics or financial downturns. In conclusion, while it's not time to press the panic button yet, customers and investors in the banking sector need to remain vigilant and informed about recent bank failures. The government and regulatory bodies must also be swift in their responses to help keep the banking sector stable. Ultimately, the well-being of the banking sector affects us all, and it's in everyone's best interest for us to work together to maintain stability and weather the current economic storm. Together, we can navigate this trying period and safeguard our financial systems for future generations. https://inflationprotection.org/should-we-be-concerned-about-the-recent-bank-failures-featuring-teri-williams-and-karen-hunter/?feed_id=104749&_unique_id=647e550d06b1e #Inflation #Retirement #GoldIRA #Wealth #Investing #doweneedtobeworried #DoWeNeedtoBeWorriedTeriWilliamswKarenHunter #karenhunter #karenhuntershow #RecentBankFailures #siliconvalleybank #BankFailures #doweneedtobeworried #DoWeNeedtoBeWorriedTeriWilliamswKarenHunter #karenhunter #karenhuntershow #RecentBankFailures #siliconvalleybank
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