Author: DRN1 News
As the US government announced special bailouts for Silicon Valley Bank and Signature Bank following their failures due to a run on the banks, financial commentator Coffeezilla has called out Jim Cramer for his bad financial advice.
In his latest YouTube video, Coffeezilla questioned why Cramer, a popular financial analyst, is "so good at being so bad at his job." Just months before the banks collapsed, Cramer had recommended investing in Signature Bank and called it his favorite.
"Watch out for Signature Bank. That's my fave. SBB Financial, don't you want?" Cramer had said.
But Coffeezilla noted that Signature Bank was one of three major banks in the United States that failed in a short period of time, along with Silvergate and Silicon Valley Bank. While the banks differed in size, they all failed due to a run on the banks when too many people demanded too much money too fast and the banks didn't have cash on hand.
The US Treasury announced on Sunday that depositors of Silicon Valley Bank and Signature Bank would have access to all of their money, citing a systemic risk exception. This move was aimed at preventing panic among depositors and ensuring that they don't withdraw their money.
Coffeezilla noted that fear is in the air, and many people are worried about the safety of their bank deposits. He called on financial analysts like Cramer to be more responsible with their advice and not to recommend investments without fully understanding the risks involved.
"These collapses are not the kind of thing that you want to see in your banking system, and it's not the kind of thing that you want to see people recommending right before they happen," Coffeezilla said.
He added that it's important for investors to do their own research and not rely solely on the advice of financial analysts, who may not have their best interests at heart.
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