Jim Bianco on Why the Banking System Has Always Been Broken - Ep. 469

Unchained

Jim Bianco, president and macro strategist at Bianco Research, explains what’s causing the recent cascade of bank failures. Yield seekers taking their money elsewhere are putting banks under strain. However, the Signature Bank takeover by New York regulators is “a little fishy,” Bianco says. He adds that DeFi has been holding up strong, providing an “alternative to this unstable system that we have right now.”

Listen to the episode on Apple Podcasts, Spotify, Overcast, Podcast Addict, Pocket Casts, Stitcher, Castbox, Google Podcasts, TuneIn, Amazon Music, or on your favorite podcast platform.

Show highlights:

• why Jim thinks this is a liquidity crisis, not a solvency crisis
• the role of crypto and tech startups in the recent bank run
• how people have been pulling out of crypto in the past 18 months
• why the traditional fractional reserve system for banks is broken
• why crypto projects like Aave and Compound are solutions
• why Jim says the Fed is a “legal counterfeiter”
• why money moving around so fast is a challenge to our antiquated financial system
• whether Signet, Signature Bank’s digital payments platform, is the real reason why regulators shut the bank down
• whether the Fed will succeed or fail with FedNow, its instant payment system

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Guest

Jim Bianco, President and founder of Bianco Research

Links

• Unchained:
• The Fall of SVB: What Happened and How It Affects Crypto
• Was Signature Bank Actually Insolvent?
• Circle to Bring On New Banking Partner for USDC Minting, Redemption
• Regulators Close Signature Bank Following SVB Collapse
• Silvergate to Wind Down Operations in ‘Voluntary Liquidation’
• CNBC: Long-awaited Fed digital payment system to launch in July
• Ram Ahluwalia’s tweet on the Fed

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