Mar 16, 2023

The forecast calls for tightening financial conditions

Julia Nikhinson/Getty Images

How the changing financial environment is influencing Federal Reserve policy and the availability of loans. Plus, is “moral hazard” to blame for Silicon Valley Bank's collapse?

Segments From this episode

Banks in Turmoil

"Financial conditions" are closely watched by the Fed — and at the moment, very complicated

by Mitchell Hartman

Mar 16, 2023

"Financial conditions" lately have been anything but simple.

Fed Chair Jerome Powell has been used the phrase "financial conditions" 29 times in his last three press conferences.

Saul Loeb/AFP via Getty Images

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Banks in Turmoil

Increased scrutiny on banks raises specter of tightening credit

by Savannah Maher

Mar 16, 2023

Banks may get stingier and more selective with loans, and that could hurt businesses that need them.

Smaller businesses often turn to small and midsize banks to help expand their operations. But those banks may be getting more selective with loans.

Drazen Zigic/Getty Images

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Silicon Valley Bank Collapse

What is "duration risk"? (And how did it get Silicon Valley Bank into trouble?)

by Lily Jamali

Mar 16, 2023

Investing in long-term government bonds and mortgage-backed securities hurt the bank as interest rates rose and bond prices plummeted.

Some bonds are more sensitive to interest rates than others, depending on how long they take to mature. That “duration risk” hurt SVB financially.

Noah Berger/AFP via Getty Images

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"You only live once" may explain Americans' continued spending spree

by Kristin Schwab

Mar 16, 2023

Some attribute it to pent-up demand. Others think the American consumer may have changed.

From dining out more frequently to traveling more, Americans continue to splurge on services despite persistent inflation.

Spencer Platt/Getty Images

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Freight forecasting

Marketplace host Kai Ryssdal explains the freight index by taking us to the Port of LA and a business in Savannah, Georgia.

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Banks in Turmoil

What is "moral hazard," and why does Silicon Valley Bank have us talking about it again?

by Matt Levin

Mar 16, 2023

Insurance can create perverse incentives, making risk seem less risky. Is "moral hazard" to blame for SVB's meltdown?

The show "Seinfeld" provides more than just laughs. It also provides a great example of "moral hazard."

Screenshot via YouTube/Castle Rock

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Silicon Valley Bank Collapse

Silicon Valley Bank's collapse reveals deeper flaws in the venture capital industry

by Kai Ryssdal and Livi Burdette

Mar 16, 2023

VCs have been among the loudest voices calling for government insurance amidst SVB’s collapse, after pulling their funds out of the struggling bank.

Prominent venture capitalists were quick to call for government insurance of all Silicon Valley Bank's deposits after its collapse Friday.

Michael Cohen/Getty Images

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The team

Nancy Farghalli Executive Producer

Daisy Palacios Senior Producer

Maria Hollenhorst Producer

Sean McHenry Associate Producer

Andie Corban Associate Producer

Richard Cunningham Associate Producer

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