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In this video, the speaker discusses the recent collapse of the Silicon Valley Bank (SVB) and the potential impact it could have on the global financial infrastructure. They explain how the collapse of a bank like SVB could affect not only large corporations but also small businesses like Etsy. The speaker suggests that people should focus on circulating their money faster rather than relying on banks to hold it, as money is meant to be used and not just sit in a bank account. They also caution that the collapse of a bank like SVB is much further-reaching than anticipated and that people should be careful with how they use and move their money. The speaker acknowledges that they are not an expert on banking and that their opinions are based on their own experiences and observations.

Daily Journal Transcript

Good evening. Good evening. Good evening.

I hope you guys are doing fantastic. I don't know about you, but I have been paying pretty close attention to the bank Svb that collapsed last week. And now there's more that are working on collapsing as we go.

It is crazy what is happening in our financial situation, financial infrastructure right now. And most people don't understand how interrelated everything is. Everything.

Until Svb had collapsed, I'd never even heard of the bank. Maybe I'd seen it in an article, brushed over it. But that's not the world I live in, right? I'm not in San Francisco.

I'm not in this venture capitalist world. So I had no idea what to expect. But even though I've never heard of it, this collapse is going to greatly impact everyone.

It's similar to the war going over on over in Ukraine and Russia. This banking collapse is going to affect everyone because you got a couple of things to remember. One.

The US. Is the leader globally of the free world, right? So everything that we do is tied to all the other countries. So when our banks collapse, it causes issues in other countries, because unlike other countries, america can just print our own money.

We are the reserve currency. Most countries cannot do that because they rely on being backed by the US. Dollar.

So with this banking collapse, we've got to really look at what is going to happen because of the global infrastructure and how interrelated everything is. So if you think about it, as we go back, looking at all the different as we go back and we look at all the different outcomes, possible outcomes, you'll see this Svb Bank is much further reaching than anyone knows. For example, Etsy.

Etsy is a technology company that is used to connect creators with buyers for small businesses. It is an entire infrastructure that connects individuals with each other to buy little things that are produced out of that relationship. Well, this is great.

Except Etsy banked with Svb. So with Svb collapsing, etsy bank and all their funds also collapses, which it also happens to be the way every person who sells on Etsy gets paid. Etsy gets their cut.

It's designed that way. Etsy is designed to collect the money, hold the money, they get a cash, flow it for a couple of days, week, whatever, until they pass it off to the person that did production. So Etsy collects the money, puts it in Svb, spends the money, holds on to it for a couple, let's say for a week, before paying out the production house, whoever was doing the work, and they get the money to use for however long they use it.

So svbs doing this. And when that happens, when the bank collapses, the money to pay out the individuals doing all the production is no longer accessible. So now you have huge tech companies that are the infrastructure for our economy today.

That have all their money disappear overnight, how they're going to pay their employees, how they're going to pay out their vendors, their suppliers, paying for all the work that needs done to keep the business up and going. So all these people are left holding the bag, and at the end of the day, everyone's pointing fingers at everyone else. The problem with the bank is the bank relies on deposits to pay out their withdrawals.

So money has got to come in in order to go out. Well, with the bank run, everyone wants their money out and no one wants to put more money in. The money disappears.

It's one of the problems with fiat currency. So this whole banking collapse is much further reaching than anyone will ever anticipate. So I want people to be careful and look at the value of your time, because your time, you can never be relived.

Right? Everyone who worked at Svb Bank, they're still fine. The bank is not all the employees, the owners, all the people involved. Yes.

Did they lose money? Yeah, that happens. But they're fine when it comes to life. They can pick themselves up, they can figure it out and keep moving forward.

This is life. Right? So that's the difference between the virtual world. In the virtual world, billions of dollars can collapse overnight.

It happens because it's all fictitious. But in the real world, I guess you could light a billion dollars of cash on fire. But who would do that? These two different worlds.

We've got to stop worrying so much about putting money in a bank and letting them hold it, and instead start focusing on how can we circulate our money faster? Because money is meant to be used. Money is an asset, it is a tool. It is not designed to sit in a bank.

As soon as you put money in a bank, the bank goes and loads it out to other people so that it can make money with the money. Skip the middleman, put your money to work for you. Banks should my opinion, you should have assets and cash flow that you focus on, not a bank account that sits there.

So I will continue following everything going on with the Sbb, Silicon Valley bank collapse and all of that, and I'll share my insights and feedback. I do want to say I am not an expert. I am an individual with ideas and thoughts and opinions.

I've never been in banking. I don't know the behind the scenes, and I'm not claiming to. This is, from my vantage point and my experience, what's happening right now, and why we all need to be so careful when it comes to how we use and move our money, because that's ultimately what builds your net worth.

With that said, I hope you guys all enjoy this March 13 and have a great day. We will talk to you all tomorrow.