Start Of Financial Crisis? Former FDIC Chief: Banks Still ‘Vulnerable’ | Thomas Hoenig

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Thomas Hoenig, former President of the Kansas City Fed (1991-2011), former Vice Chairman of the FDIC (2012-2018), and currently the Distinguished Senior Fellow at the Mercatus Center, says that the banking system is still "vulnerable". Two days after the filming of this interview, regulators closed Philadelphia-based Republic First Bank on April 26. Hoenig also discusses his outlook on the economy, inflation, and monetary policy.
*This video was recorded on April 24, 2024
Listen on Spotify: open.spotify.com/show/510WZMF...
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Mercatus Center Discourse: www.discoursemagazine.com/
Substack: www.finregrag.com/
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*This video is not financial advice. The channel is not responsible for the performance of sponsors and affiliates.
0:00 - Intro
1:30 - Banking sector still 'vulnerable'
12:30 - Bank run and financial collapse
14:50 - FDIC and cryptocurrency
18:05 - Inflation outlook
22:54 - Fed cuts this year?
24:10 - Why have a 2% inflation target?
28:39 - QE and inflation
29:54 - Fed policy and other central banks
31:50 - QT and asset prices
32:47 - Fed's forward guidance
36:00 - How Fed decisions are made
37:00 - Politics and the Fed
37:34 - Fed's performance in 2024
#economy #bankfailure #federalreserve

Опубликовано:

13 июл 2024

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Комментарии : 350

@TheDavidLinReport 2 месяца назад

Republic First Bank was shut down this week. Are more bank failures next? Is a systemic financial crisis in the works? Comment below and don't forget to subscribe! FOLLOW THOMAS HOENIG: Mercatus Center Discourse: www.discoursemagazine.com/ Substack: www.finregrag.com/

@edwardk3 2 месяца назад

Should zellinski buy it out?

@dthorne4602 2 месяца назад

No. Why would there be a financial crisis?

@jerrycampbell-ut9yf Месяц назад

It was a very bad decision to remove the Glass-Steagall Act in the late 1990s, which led to the spectacular failure of huge banks during the financial crisis of 2007-2008. To prevent another disaster, Dodd-Frank and this statute both need to be reestablished right away. What happened with SVB is only the beginning of what will happen if nothing is done to address the current situation.

@Peterl4290 Месяц назад

I believe SVB was making an effort to reorganize their bond portfolio. Yes, they would lose money if they sold their low-yielding bonds. But, they were trying to make up for it by repurchasing bonds on the open market at the higher interest rate.

@larrypaul-cw9nk Месяц назад

Although the economy has so far held up, the SVB scenario serves as a warning that Fed rate hikes are still having an impact. At times like this, investors must be vigilant about the next inevitability. You don't have to act on every forecast, therefore I'll advise you to hire a financial counselor. This has been my fallback position for a while.

@Mrshuster Месяц назад

Would you mind telling me how to contact this specific coach using their service? Unlike the rest of us, it appears you have figured everything out.

@larrypaul-cw9nk Месяц назад

Her name is “Vivian Carol Gioia can't divulge much. Most likely, the internet should have her basic info, you can research if you like

@Mrshuster Месяц назад

I just Googled her name and her website came up right away. It looks interesting so far. I'm going to send a mail to her and let you know how it goes.Thanks for sharing truly!

@jazzbeau507 2 месяца назад

Great guest ....great host. Thanks David; Please invite Mr. Hoenig back 2 to 3 times a year. Thank you.

@chrysisd 2 месяца назад

Mr Hoenig answered all questions in so much detail. This interview was truly enlightening. Thank you 👏

@simonfowler698 2 месяца назад

are you serious ? With respect to him & you he shows how little they understand or that they are complicit in the alteration of the system. he says in one breath we will back stop the banks they wont fail but then say no we wont back stop crypto institutions because that would send the wrong message & promote irresponsible financial conduct. so essentially hes saying yep the banks cant go crazy with their irresponsible investments & they have little risk! He even said that 25% of collateral is guaranteed by the fed! that is why we are here now in this situation!! Then the explanation of the inflation rate LOL what a joke its just a number we came up with ??? seriously if i was this unprofessional in my job im done in 5 mins. This was really i opening & I think you can see it in Davids face too he cant believe this is the best of the best in the financial field? Please correct me if im wrong but I have very little faith in these guys

@verypleasantguy 2 месяца назад

They kept on telling us how horrible China is, how China's economy gonna collapse, every single day, for the past 10 years

@kylecollins7079 2 месяца назад

Wow David keeps rolling out the hits

@USGrant21st 2 месяца назад

Wow David, how do manage getting such fantastic guests?

@lepton31415 2 месяца назад

it's the hair

@bbot21 2 месяца назад

What valuable insight from an "insider". He chooses his words carefully but you can tell he is, for the most part, honest, logical and realistic.

@RobertojavierSilvaharth-ub3pz 2 месяца назад

The Fed takes fuzzy logic to a whole new level; if they were not the Fed, they would be inmates...

@alireza3474 2 месяца назад

If you want to learn how to lie….your watching a professional.

@guinascimento4180 2 месяца назад

This os the most honest conversation you will ever hear about bubble, debt monetiztion and the role the Federal Reserve has in it.

@majormoolah5056 2 месяца назад

This is the most horrifying interview I have seen in a very long time. Mr. Hoenig literally came out and said that the US banking system is insolvent and only kept afloat by a US government guarantee. He also said that the government essentially has to bail out any bank that fails or confidence in the whole system goes. I mean, this is a disaster waiting to happen. This means a never-ending series of bailouts until the end comes.

@ivivivir 2 месяца назад

That is the case since 2008 so do not get surprised.

@majormoolah5056 2 месяца назад

@@ivivivir The Silicon Valley Bank bailout has made the 2008 time bomb even bigger though

@_m_K_. 2 месяца назад

Most of "us" that follow contrarian or alternate financial news know and realize this. This is just an insider confirming the obvious. I give him credit, he has the dignity and self respect to say the emperor has no clothes.

@kevinyaucheekin1319 2 месяца назад

Until the Fat Lady sings. 😅

@fsaldan1 Месяц назад

He definitely did not say the banking system is insolvent.

@rhysfastiggi4345 2 месяца назад

David that was the best and most informative interview you have ever posted. Great questions. Thank you very much.

@larryseibert4102 2 месяца назад

Excellent conversation. Please invite Tom back again soon. Great to hear from someone who has actually been in these positions and knows the mechanics.

@leonlobos9718 2 месяца назад

Your best interview to date!!!! Thank you for your work.

@bibibachmd9995 2 месяца назад

Thank you David. One of the best interviews.

@larslarsheim1741 2 месяца назад

Ok..no bailouts except for all banks

@stephengoodwin6403 2 месяца назад

or bail-in's

@simonfowler698 2 месяца назад

@@stephengoodwin6403 exactly this interview was a real eye opener! he is confirming yep banks go do your dodgey deals we got your back but crypto or any one else no way

@laro802 2 месяца назад

The rich get bail-outs, the poor get hand-outs, and the working class gets screwed.

@2ferone86 2 месяца назад

Privatize the gains and socialize the losses. Fractional reserve lending will become fictional reserve lending, so you can lie about how much gold you even have. Something like bitcoin is too risky though. Bailouts! 😂

@pfschuyler 2 месяца назад

Yes 100% no bailouts. Except, they had to obliterate Capitalism.

@scottray9021 2 месяца назад

Awesome guest. Finally have some truth about how the FED works and makes decisions.

@adiintel1 2 месяца назад

To protect retail/commerical banks at the cost of debasing the Usd thus stealing people's savings through inflation? 🤷

@mysteryman480 2 месяца назад

This was one of the best guests so far.

@mrlarry999 2 месяца назад

Fantastic interview David. It’s nice to hear from a guest like Tom with his credentials, and to hear his perspective. Great questions, and I found Tom’s answers to be very straightforward and informative. 👍🏼👍🏼

@bkfabs 2 месяца назад

Nice interview, David. Excellent questions and a very informative guest.

@godsservant2835 2 месяца назад

What an amazing interview. Give this guy a medal for unpacking the Fed’a position and moves moving forward. Bring him back !

@slhug8624 2 месяца назад

Excellent interview! Thank you!

@edmitiu7383 2 месяца назад

Thank you Gentlemen for the usable info.

@dorispowers9060 2 месяца назад

Cut rates ,are you kidding me. The conversation should be about how far to RAISE the prime rate. The inflation rate is much higher the the government reports. To many things are left out of how inflation is measured. Those things like rent, house priced,health care are killing the middle class. Look, even the USPS is raising rates for a stamp in July by 7 %. This marks the 3rd time in a year the stamps have been increased. That's the government agency telling us that inflation is higher than reported. 😢

@lesleyjohnson8488 2 месяца назад

Yeah. The CPI is a joke

@trevorsullivan7320 2 месяца назад

But the rates on the debt are the other side of the equation that mean we are doomed if we do and doomed if we don't. We are in the golden age, get your yolo's out now!

@jj3682 2 месяца назад

David has become one of my favorite interviewers on this platform. He always asks thoughtful questions in a respectful manner even if they challenge a speaker's perspective. He also lets his speakers talk without injecting his own opinions. He doesn't take over the conversation and steer it the way he wants it to go. That is becoming more difficult to find. David, you're a gem, I appreciate what you do!

@bbustin1747 2 месяца назад

Banks speculated taking all that risk on those extreme low rate loans….. 😂

@Ali-ex4uk 2 месяца назад

Great interview, thanks ❤

@RobertojavierSilvaharth-ub3pz 2 месяца назад

The short version: Capitalism for the poor; socialism for the rich...

@prolific1518 2 месяца назад

Aka capitalism... Greatest trick ever pulled has been the rich tricking the population into believing in capitalism. The rich get all of the benefits and very little of the consequences. The poor get all of the consequences and very little of the benefits. The next greatest trick was parlaying capitalism into "democracy" where the poor are given the illusion of choice. Democracy breeds complacency and will always end in an oligarchy where the poor think they have genuinely chosen their leaders. Once the poor realize the truth, the house of cards crumbles. Take a guess where the US currently is in that process.

@prolific1518 2 месяца назад

And RU-vid censored my comment without a single "bad" word in it.

@Namegoeshere-op9hg 2 месяца назад

Steal from the poor and illegally give to the rich. Stealing isn’t part of capitalism or socialism. The whole right-left idea is a red herring to keep stupid people busy as they f*ck us all through the dollar.

@andrewperez7138 2 месяца назад

Corporatism not capitalism

@verypleasantguy 2 месяца назад

They kept on telling us how horrible China is, how *_China's economy gonna collapse_* , every single day, for the past 10 years

@angelika1586 2 месяца назад

thank you David and Mr. Hoenig such a good interview, honesty is so important for informed consent :)

@stephencoates4549 2 месяца назад

A very intelligent man and call's a spade a spade. Bring him back so the public knows what's happening and can make decisions for themselves instead of being feed BS and lead down the wrong path

@stephencoates4549 2 месяца назад

Thank you David, I would love to hear from him on a regular basis due to his honest, knowledgeable no bull market position.

@c00121314brave 2 месяца назад

Seriously guys and gals David Lin is the gift that keeps on giving some of the questions are just excellence 👏!!

@jj3682 2 месяца назад

Great guest! Truly enjoyed this!

@cabragooncabulous4082 2 месяца назад

This gentleman was great! Thank you David. He should be next pick for treasury secretary. Tell Govt congress how it is.

@993C2S 2 месяца назад

Wonderful guest. Please bring him back often. Thank you.

@JacquelineSkene 2 месяца назад

Hope you have switched to the recommended Quantum Financial System XLM and XRP?

@tenplus1025 2 месяца назад

Nobody does it better than D Lin!

@markf4968 2 месяца назад

Great interview but doesn't make me feel any better about our system.

@mycameraview 2 месяца назад

Great interview, David!

@terifong9816 2 месяца назад

Great interview!

@Mr8675309ful 2 месяца назад

What a great guest David. Both of you nailed it, you with your questions, & Tom with his insight. I love listening to these former insiders. The timing of his appearance was also perfect, with the elections looming in November. PLEASE make him a regular on your show.

@markperl5900 2 месяца назад

Thanks David. Another cracking interview 🤝🏻

@JacquelineSkene 2 месяца назад

Hope you have switched to the recommended Quantum Financial System XLM and XRP?

@JeremyHelm 2 месяца назад

15:56 I have no problem with speculation, as long as you're willing to take the loss

@cambriawellness3102 2 месяца назад

Good questions!

@liamjamesburke7326 2 месяца назад

Excellent interview. Mr. Hoenig's a legend.

@inflationmillionaire-df3mn 2 месяца назад

There's a lot of cars that are being repossessed commercial real estate that is repossessed and most underwater

@lrww5673 2 месяца назад

Great interview with Thomas. As others have said, get him back again in the near future. Enjoyed this!

@stevencrane5854 2 месяца назад

Excellent interview.

@mairelordan4539 2 месяца назад

Well the fact you didnt pass out when the Thomas Hoenig liked your questions and is happy to come back is proof of your professionalism 😊🎉

@user-wj9ld9vm6y 2 месяца назад

Very interesting!

@randyrice8411 2 месяца назад

Wow! I like that guy! Absolutely enjoyed listening. Thank you for your insight!

@levratalex4929 2 месяца назад

Great content

@glenndallaire3449 2 месяца назад

Very informative interview. Thank you gentlemen.

@JacquelineSkene 2 месяца назад

Hope you have switched to the recommended Quantum Financial System XLM and XRP?

@jsvi 2 месяца назад

Thank you Sir. I appreciate the light of reason and wisdom in this overly confusing area. Too many fly by night commentators have created unreal expectations about investing in whatever asset is for sale. Your clarity is appreciated. Thank you Mr. Lin.

@rossallen7667 2 месяца назад

Excellent guest.

@jonh7054 2 месяца назад

I watched another great interview with Thomas Hoinig on Thoughtful Money with Adam Taggart. Adam like David gives great interviews and sensible advice and information as to what is happening in the economy.

@gamano7905 2 месяца назад

Good interview😀

@timothytimmerman1136 2 месяца назад

He is such a good interviewer.

@commonsense6967 2 месяца назад

Thank you, David, for having Mr. Hoenig on.

@ivivivir 2 месяца назад

Good guest. Thanks David!

@MrFonzal 2 месяца назад

Excellent

@conduit242 2 месяца назад

Banks are the speculation

@hanzn6784 2 месяца назад

They all assume that recession automatically means lower inflation as if we have never had both at the same time

@cryptocatguru 2 месяца назад

Good interview. But I guess nowadays the SEC I assume have some better prediction models

@sbar39 2 месяца назад

Honest man factual and unemotional 👍

@Slide61 2 месяца назад

All the consequences taking risk on the public. All the reward to the person/institution taking the risk.

@cassandratq9301 2 месяца назад

Best guest ever.

@patentexperts1675 2 месяца назад

He talks a good game and if the FED actually followed Thomas's description of the way things operate we would never of been in this mess.

@lorilacour7816 2 месяца назад

He was a great guest

@caseyrindal1815 2 месяца назад

Once a fed banker always a fed banker. Never tell the truth about what a mess we're in.

@rajkhiani5404 2 месяца назад

Excellent speaker would love to hear from him again

@JacquelineSkene 2 месяца назад

Hope you have switched to the recommended Quantum Financial System XLM and XRP?

@peggyharris3815 2 месяца назад

Business as usual. (We wont talk about what 'usual' means).

@Slide61 2 месяца назад

'Financial innovation' is what got us here.

@Bitcoinclips360 2 месяца назад

Awesome experience

@jeffreydurrance5400 2 месяца назад

I haven't watched the video, but from the intro I can see that the discussion will be about monetary policy which the FED controls, not the fiscal debt that government spending is the cause of.. the real source of the inflation. We can't afford the debt repayments at a higher interest rate, it's already more than the defense budget

@christopherdavies8839 2 месяца назад

Last 1 minute of the conversation sums up America. Forget spending down your dept to sacrifice short term growth and payback more later on top of the limitless dept for the next generation. Brilliant. Look forward to seeing how this pans out.

@unclefester03 2 месяца назад

Bleak. I appreciate his candor.

@Suvasley 2 месяца назад

David Lin, a one man missionary, to expose dinosaurs.

@ace9840 2 месяца назад

The start of this financial crisis started in 2008 the housing collapse wasn’t the problem it was a symptom of the problem.

@John-ou4rm 2 месяца назад

Great discussion. Not sure I agree with data dependent rather than forward expectations given the lags in the system.

@TakeOver1616 2 месяца назад

Growth already slowing down massively!

@hhhkf 2 месяца назад

I wish these Federal Reserve people would tell the truth for once. The cost of everything has gone up by 200 to 300 percent since 2020.

@helenbrooks4787 2 месяца назад

They have to deny these facts to cover for the Democratic Party.These liberals certainly don't want any truth getting out with a major election coming up later this year. Expect them to continue trying to shove sunshine up everybody's asses until at least December.😂😂😂

@morgankl797 2 месяца назад

Overhere, official inflation is below 4% but our prices of cook food at hawker centre increase from $3-4 to $4-5. U r lucky to get decent food at $4, else the portions is really tiny. U r being forced to pay higher prices for decent portions.

@_m_K_. 2 месяца назад

I bought a brand of clothes detergent from Costco at the end of 2022/early 2023. I just bought the same item and was suprised the price was the same. When I got it home, the old container had 250oz of detergent, the new one had 200oz of fluid. 20% reduction or eg, 20% real inflation in a year on real consumer goods.

@cassandratq9301 2 месяца назад

He is telling the truth.

@vallmak 2 месяца назад

Legend!

@cvgguy98 2 месяца назад

If the former KC Fed Chief believes the Fed that we are only experiencing 3% inflation, he must have someone else writing checks for his electric, insurance, internet, cable, mortgage, and grocery bills.

@Dannyshouseofcards 2 месяца назад

But some reason we bailed out the auto industry 🤷‍♂️

@momantube 2 месяца назад

David, did I miss it, or did you ask the most important question ..... GOLD?

@Psodji 2 месяца назад

the dollar shift price volatility to supply volatility. It is certainly a risk asset.

@giniaa2707 2 месяца назад

What we have is a corporate capitalistic system of banking...

@user-ys5qp4bq4s 2 месяца назад

He shows the Fed's way of thinking, i.e. keep interest rates unchanged because car insurance went up 30%, holding the print high. That means parts of the economy that are not car insurance or repair are actually facing a highe real yield.

@kylecollins7079 2 месяца назад

Lol and Republic First bank just collapsed yesterday. I'm starting not to trust any banks that have the word republic or first in its name 😂

@commonsense6967 2 месяца назад

Alreadybeen taken over by Fulton Bank, yesterday.

@nationsnumber1chump 2 месяца назад

Idc about bank failures. The whole financial system has been a failure since captain hook landed on this continent.

@jcgoogle1808 2 месяца назад

Great discussion, great questions,. Toward the end I was hoping you would ask if he gave any credibility to the Phillips curve. There has to be some relationship,.. but there are many who vehemently (as if they have skin in it not being so) claim there's no relationship.

@ask_why000 2 месяца назад

FDIC deposit insurance - to an upper limit. That should also be a line in the sand.

@ld9044 2 месяца назад

Have your money taken by bank failures or the devaluation by printing. This person is still a fed creature. Encouraging people to stay in a failing system.

@pauldarrigo4395 2 месяца назад

Do you think Yellen will issue more long term bonds?

@JeffreyHardin-bk9ns 2 месяца назад

To me the mortgage banking trade with underwriting any real estate would have been short 10-year treasury notes and fund loan above the rate paid on the shorted treasury notes thus creating a NIM for the bank.

@bobiq 2 месяца назад

He speaks like he really believes that US debt will ever be paid. It is all so sweet but I think this guy is very restrained in saying the real truth.

@user-ow3ni2zd2x 2 месяца назад

Keep printing

@ChrisWill 2 месяца назад

Wow. His statements about “crypto banks” are very revealing.

@xqt39a 2 месяца назад

It looks to me that the gov will always provide liquidity, as much as necessary to prevent collapse. Hyperinflation will end this money printing sooner or later

@JacquelineSkene 2 месяца назад

Hope you have switched to the recommended Quantum Financial System XLM and XRP?

@nabzy28 2 месяца назад

Oh, it's on already. Interest on the debt will be 1.5 trillion by next April if rates aren't cut. It's going straight up, already. Commercial real estate paper losses in the billions, just being carried over month to month to month. If the precious metals break out, just about every bank in the US will be insolvent, crushed by their leverage. Get ready.