Founder and CEO of First American State Bank Jay Davidson explains how the Federal Reserve’s meteoric raising of interest rates to cool the economy, reduce wage growth, and decrease employment is having consequences in the banking industry.Regulators and management alike contributed to the failure of the Silicon Valley Bank. The Silicon Activity Bank did a lot of activity in crypto, which most banks avoid due to its inherent volatility. The bank’s treasuries went down in value so much that it wiped out the bank’s equity. This chain of events came as a result of the bank’s mismatched deposits. The liquidity crisis had put the bank’s operations under significant strain. Regulators want to reduce the number of banks in the US via consolidation and the creation of a toxic regulatory environment. The rising popularity of cryptocurrency poses many challenges. Listen to the full interview in the first hour.
The Fed’s Role in SVB’s Failure
Founder and CEO of First American State Bank Jay Davidson explains how the Federal Reserve’s meteoric raising of interest rates to cool the economy, reduce wage growth, and decrease employment is having consequences in the banking industry. Trent Loos discusses water in the west and California’s disregard for proper water management.
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California Water Woes
Trent Loos discusses water in the west and California’s disregard for proper water management. Loos is currently in Southern California. California has set aside millions of dollars to improve its water system, but no changes have been made or planned. California has had enough rain and moisture to account for the state’s water needs for the next decade, but due to the state’s failing reservoir system it all went to the ocean. 87% of homes in the US have municipally-provided water. The degree of control the government has over water is alarming. Conservation has been hijacked by preservation. Conservation has come to be dictated by ideas of scarcity and fear. Listen to the full interview in the second hour.
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