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GeoPulse : Learn how to take control of your money with smart personal finance strategies, simple investing tips, and daily money hacks. In this video, we break down today’s financial news and give you practical steps to grow wealth, save smarter, and invest wisely.

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Transcript
00:00Let's recap how we got here. Thanks to rising prices, aka inflation, the Fed has been making
00:05money more expensive to borrow by raising interest rates. But before that happened,
00:09a bunch of the smaller banks put our money into treasury bonds. Now that's also how banks make
00:15money. They lend money and they invest our money into safe assets like treasury bonds to collect
00:19an interest. But there was a problem. When the Fed started to increase interest rates to fight
00:24inflation, it negatively affected those bond values. And so the value of our deposits also went
00:31down. And that made people panic. They all wanted their money out of the bank at the same time. And
00:35that made those banks sell their assets at a loss, making some of them insolvent. That's a fancy way
00:41of saying out of money. And now you're all caught up.
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