logo
episode-header-image
Apr 2024
18m 57s

Do Bank Failures Always Cause Recessions...

Economics Explained
About this episode

Last year's banking crisis in Silicon Valley, where three banks including Silicon Valley Bank failed, caused bank runs and put pressure on other banks like Credit Suisse. This is reminiscent of past US banking disasters such as the Great Depression and the 2008 recession. Many economists predict that more banks around the world will face similar pressures, so what are the causes and potential consequences of these failures?

Learn more about your ad choices. Visit megaphone.fm/adchoices

Up next
Aug 11
Why do We Still Need to Work?
A century ago, economist John Maynard Keynes confidently predicted that by 2030, we would only be working 15 hours a week. Yet, here we are—working harder than ever! While technology has dramatically boosted productivity, our work hours remain largely unchanged, and the prevalenc ... Show More
15m 56s
Aug 5
Do We Still Need Central Banks?
Almost every nation relies on a central bank, but the US is buzzing with talk of scrapping the Fed—the globe’s mightiest financial force! From its 1694 origins to battling today’s debt and inequality crises, we break down why central banks are crucial and what chaos could unfold ... Show More
18m 39s
Jul 21
Iran's Economic Dilemma
Iran boasts vast oil reserves, a strategic trading position, and a skilled workforce; however, sanctions and internal issues hinder its progress. From black-market oil to power outages, discover why this energy giant struggles to thrive. Can it break free from its economic troubl ... Show More
16 m
Recommended Episodes
Mar 2023
After Hours Special: The Crisis in Banking
Mihir and Felix think about the current crisis in banking. Why did Silicon Valley Bank fail? Is the demise of Credit Suisse a result of the contagion in the United States? And what’s the future of banking? Will the big banks get even bigger? Even more prone to fail? Would we be b ... Show More
36m 53s
Mar 2023
The Huge Significance of Small Banks
Torsten Slok had been firmly in the “no landing” camp of economists. More positive than a “soft landing,” its adherents say the Federal Reserve will tame inflation without triggering a recession at all. But for Slok, chief economist of Apollo Global Management, that all changed w ... Show More
39m 43s
Mar 2023
The Death of Silicon Valley Bank
On 7th March, Silicon Valley Bank tweeted, “Proud to be on @Forbes’ annual ranking of America’s Best Banks…” By 10th March, SVB’s stock price had tanked by 60% and the bank was taken over by an arm of the US government. What on earth happened? In today’s episode for 13th March 20 ... Show More
10m 12s
Mar 2023
Should I be worried about all the bank failures?
Are we in the middle of a financial crisis? Today’s show breaks down the latest bank crises — from Credit Suisse to First Republic. Read more: Another week, another banking calamity.  On Sunday, Swiss banking giant UBS came to the rescue of its rival, Credit Suisse. It was the fi ... Show More
18m 31s
Mar 2023
La crise de la Silicon Valley Bank va-t-elle entraver la lutte contre l’inflation?
L’effondrement de la Silicon Valley Bank (SVB) remet-il en cause le programme de lutte contre l’inflation menée par la Réserve fédérale (Fed) ? C’est la conviction partagée par de nombreux analystes. Ils s'attentent à ce que la Fed freine dorénavant la remontée des taux d'intérêt ... Show More
3m 53s
Mar 2023
Will the sale of Silicon Valley Bank relieve pressure on the system?
After a few weeks of bad news about bank failures, financial markets are slowly coming back to normal. Central banks around the world have stressed that the banking system is safe and lenders are well capitalised. Analysts, however, admit that risks to financial stability have in ... Show More
52m 23s
Mar 2023
Martin Wolf on why banks fail and what to do about it
Credit Suisse… Silicon Valley Bank… Signature Bank… First Republic… After weeks of breaking headlines about banks in crisis, we are taking a big picture look at the sector with the FT’s chief economics commentator, Martin Wolf. In this episode, he explains why banks fail, and lay ... Show More
20m 5s
Mar 2023
Special Episode: Silicon Valley Bank Goes Bust
Silicon Valley Bank collapsed on Friday — the second-largest bank failure in our nation’s history. In today’s special episode, Scott and Ed break down what happened, how it happened, and what might happen next. Scott also addresses government bailouts, the consolidation of bankin ... Show More
34m 50s
Mar 2023
Why the Banking Crisis Isn’t Over Yet
In the past week, as spooked customers frantically withdrew $42 billion from Silicon Valley Bank, the U.S. government stepped in to craft a rescue operation for the failed lender.But efforts to contain the crisis have met resistance, and the fallout of the collapse has already sp ... Show More
29m 4s