The failure of Silicon Valley Bank worries not only their clients, but also every investor in the U.S.

On one hand, it’s the biggest bank collapse since 2008.

On the other hand, we were lucky it didn’t cause a chain-reaction.

And, the Federal Reserve follows a, albeit risky, plan—albeit, a risky plan— to reduce the damage, and save SVB’s clients.

Furthermore, understanding how the current situation in the banking sector came to be can help us make better decisions on the stock market.

In today’s episode, you’ll discover why banks like SVB fear the looming danger of higher interest rates, and why the current crisis may even be an opportunity to stabilize the stock market.

Listen now.

Show highlights include:

• How banks operate these days (and what they do with your money) (4:19)
• What went wrong with Silicon Valley Bank (and why many other banks may share their fate) (6:27)
• How the Federal Reserve says they’re is going to save SVB’s clients (and why this plan has many drawbacks) (11:27)
• The roundabout, yet effective way the Federal Reserve wants to regulate the banking sector and stabilize the stock market (13:40)

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