Key Takeaways
- The past two weeks has seen a raft of bank failures that was kicked off by Silicon Valley Bank
- Some are drawing parallels to the 2008 financial crisis and concerns over whether a housing market collapse is possible
- It’s important to understand the fundamental differences between then and now, with the current bank problems driven by short term liquidity issues, rather than fundamental asset values
- Housing prices are falling, which makes now a good time for potential buyers to work to build as much of a down payment as possible
There’s no hiding from it. The financial sector is having a wobble. Silicon Valley Bank and Signature Bank no longer exist, and over in Europe 166-year-old Credit Suisse has just been sold at a 50% discount to their biggest rival UBS.
Twitter and LinkedIn are alight with loud voices calling the start of an economic apocalypse and the collapse of the housing market.
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