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Why Bank Math is Like Abbott & Costello

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(3/17/23) Bank math is a lot like Abbott & Costello math; the main issue with banks is lack of mark-to-market; SVB problem was it's the tech-darling, whose product was sub-prime business loans based on "social credit." (See "The Panic of 1907"). How diversity and equity nearly crashed the economy (NY Post). Is the Fed's 2% inflation target realistic? The ECB continues to raise rates; what will the Fed do? Credit Suisse and First Republic: Euphoria vs reality? Why more Americans under-estimate Social Security benefits. Including sequence of returns in financial planning; everything is rosy at brokerage firms, and the answer for every question is stocks. The "S" in ESG is stinky. The luck of retirement in the economic cycle; the 4% Rule is a lie. Janet Yellen calls Jamie Dimon; hilarity ensues; Credit Suisse bail out vs realization that some things cannot be fixed; Labor & Demographic trends: Effects of inflation, prices are not going backwards; seniors going back to work. IQ vs EQ (emotional quotient).
2:46 - SVB, Abbott & Costello, and Bank Math
14:08 - How Diversity and Equity Nearly Crashed the Economy
30:01 - Under Estimating Social Security Benefits
14:01 - Janet Yellen Call to Jamie Dimon;
45:27 - Inflation that Cannot be Fixed
Hosted by RIA Advisors Director of Financial Planning, Richard Rosso, CFP
Produced by Brent Clanton, Executive Producer
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Our previous show is here: "Why the Credit Suisse Bailout is Significant: SIFI"
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Articles mentioned in this podcast:
"Bank Runs. The First Sign The Fed “Broke Something.”"
https://realinvestmentadvice.com/bank-runs-the-first-sign-the-fed-broke-something/
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Lance Roberts
Finally, financial news that makes sense. Lance Roberts, the host of "StreetTalkLive", has a unique ability to bring the complex world of economics, investing and personal financial wealth building to you in simple, easy and informative ways but also makes it entertaining to listen to at the same time.
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