The forecast calls for tightening financial conditions
Mar 16, 2023

The forecast calls for tightening financial conditions

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

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

Increased scrutiny on banks raises specter of tightening credit

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

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

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

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

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

Freight forecasting

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

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

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

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

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

The team

Nancy Farghalli Executive Producer
Daisy Palacios Senior Producer
Sean McHenry Associate Producer
Andie Corban Associate Producer
Richard Cunningham Associate Producer