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Glenn Reacts to Statement by U2's Bono: He's Amazing, One of the Bravest

May 25, 2017
Staff

WRITER

Editor's note: This article has been updated. An earlier version seemed to indicate Glenn's admiration for Bono was a recent development when in reality, Glenn has been a fan of U2's lead vocalist for quite some time.

Contrasting responses to the Manchester terrorist attack made by U2's Bono and Queen's Brian May, Glenn shared his reaction on radio Thursday.

"I think Bono is an amazing guy, truly an amazing guy," he said.

One thing's for sure, Bono is incredibly brave for his comments on Manchester:

They hate music. They hate women. They even hate little girls. They hate everything that we love. And, you know, the worst of humanity was on view in Manchester last night. So was the best. As people took perfect strangers into their hands, and cued up blood banks. Manchester has an undefeatable spirit, I can assure you.

In other interviews, Bono has boldly discussed his belief in God:

My mother died at my --- her own father's grave site, as he was being lowered into the ground --- I was 14. She left me, but she left me an artist. I began the journey, trying to fill the hole in my heart with music, with my mates, my band mates.

Finally, the only thing that could fill it is God's love. And it's a big hole. But luckily, it's a big love. I went finally to Jerusalem on a family pilgrimage and I went to Golgotha. And I went to the site where -- and I had some time on my own -- where death died. And I was like, wow, there it is. That's where death died.

"That's unbelievable. I've never heard it described as where death died. That is fantastic," Glenn said.

Religious themes have also made their way into U2's music.

"U2's 1983 album War has a song called 40," Co-host Stu Burguiere said.

Bono's bandmate The Edge had this to say about the song:

So we had this slightly unusual piece the music, and We said, okay. What are we going to do with it? Bono said, let's do a psalm. Opened up the Bible, and found Psalm 40. "This is it. Let's do it." The song title is 40. Within 40 minutes, we had worked out the last few elements from the tune. Bono had sung it. We had mixed it. And literally, after finishing the mix, we walked out the door, and the next band walked in.

"I mean, they did a song that was based on Psalm 40," Stu said.

"If they're playing anywhere when I get back from vacation, if they're anywhere close, let's all go as a show," Glenn said.

Listen to this segment beginning at the 18:18 mark from The Glenn Beck Program:

GLENN: Welcome to the program.

Okay. So we heard from Brian May. Now let's hear what Bono said about the Manchester bombing.

JIMMY: As you know, there was another senseless terrorist attack in Manchester yesterday.

PAT: Obviously on Jimmy Kimmel.

JIMMY: And that's something you guys have been thinking about, certainly.

BONO: They -- they hate music. They hate women. They even hate little girls. They hate everything that we love.

And, you know, the worst of humanity was on view in Manchester last night. So was the best. As people took perfect strangers into their hands, and cued up blood banks. Manchester has an undefeatable spirit, I can assure you.

GLENN: Now, listen to the difference.

PAT: Listen to the difference between him and Brian May.

GLENN: Listen to the difference.

PAT: That almost sounds like what George Bush used to say all the time.

GLENN: No, but that's true.

PAT: They hate our music. They don't like Ariana Grande.

(laughter)

PAT: They don't like our -- tunes.

(chuckling)

PAT: They hate freedom.

GLENN: Right.

PAT: They don't like bowling. They don't like professional bowlers. They don't like the bowling shoes. They think they're ugly.

(chuckling)

Even the size 12, they didn't like them at all. In fact, size 12 bowling shoes set them off more than anything else.

(laughter)

STU: That's great.

GLENN: There's more to Bono that you absolutely have to hear. One of the -- one of the bravest --

STU: Yeah.

GLENN: One of the bravest -- he's kind of the Jon Voight though of music. Jon Voight is like, I got my Oscars. They don't know what to do with me now anyway. I'm still going to act in all their movies because they love me.

That's who he is. Bono is Jon Voight of music.

(OUT AT 10:30AM)

GLENN: All right. So let's play the Manchester from Jimmy Kimmel and Bono. I think Bono is -- is an amazing guy. Truly an amazing guy.

And I don't know if he is -- if he's changed, if he was as lefty as we thought. Or if he was just so popular, the left just brought him in and said, "Oh, Bono, you're on great. And you agree with us on everything." And he got credit and blame for things that he really didn't believe. I don't know.

PAT: Possibly. Because I remember disliking him a lot, thinking he was a wacko progressive.

GLENN: Well, you were a big U2 fan.

STU: I'm still a big U2 fan. Actually seeing them on Friday in Dallas.

JEFFY: Heck yeah.

GLENN: Are you really? I've never seen them.

STU: Oh, they're fantastic. This one is the Joshua Tree Tour. So they're going back -- I guess it's the 30-year anniversary of the Joshua Tree. So they're doing the whole album. And I think just that.

PAT: What?

GLENN: If they're playing anywhere, when I get back from vacation, if they're anywhere close, let's all go as a show. I've never seen them. I hear they're great.

STU: They are. I've been a big fan for a really long time. But I've always felt like the right gave him an unfair shake when it comes to who he is. Because he's seen as sort of this crazy liberal activist. And he was big on supporting AIDS charities and debt relief and sort the these global causes that you'd associate with every left-wing annoying celebrity --

PAT: AIDS for Africa.

GLENN: And there's nothing -- there's nothing wrong with any of that.

STU: Of course not.

GLENN: I always just assumed that he was with the United Nations. And I think he was.

STU: Yeah.

GLENN: And then it didn't work.

STU: You know, I think -- he's no hard-core conservative by any means.

GLENN: No, no.

STU: But he's always been a big capitalist. And I think he's always -- he's always been religious and had a really impassioned --

PAT: And he's not afraid to talk about it.

GLENN: He was always religious?

STU: Yeah, going back to the beginning of the band.

JEFFY: Pretty much.

STU: I think he's had times where he's had his ups and life. I mean, he's lived a life. He's lived a rock star life too.

GLENN: I mean, I've heard him mention Jesus a lot lately.

PAT: Yeah.

GLENN: I mean, it must be one of his up periods because nobody talks -- nobody uses the J word.

STU: He's been more outspoken, I think, recently.

GLENN: Yeah.

STU: But he's always had that influence. And, like, one of the things he got beat on was this RED project he did. Now, the RED project was -- you might remember it. It had like -- it was all shirts. And a lot the people, and celebrities were wearing them for a while. It said like, "Inspired." And RED was in parentheses. And it raised money for global charities, and it was a big deal.

And, you know, the media and also a lot on the right, kind of jumped on him. Was like, well, here you go. I think they raised $100 million or something. And they -- but, you know, like, I can't remember exactly what it was. It was something like at the end of -- at one period, they had only sent something like $20 million to -- to these charities. And it's like, well, think about what he did there, from a conservative perspective from a moment.

He worked with dozens of actual stores. He didn't just ask for free money. He worked with actual capitalist institutions, designed clothing that people wanted to wear, and then took a chunk of that money and gave it to charity.

GLENN: 20 percent.

STU: It was something like 20 percent that he gave to charity. Now, he didn't give every dime of it to charity. You know, there were licensing fees that they paid. He got criticism for that. And the fact that they were working for these big companies that only want profit and get people in the stores, and they buy other things.

GLENN: You had to have license, or people would rip it off. And then you would have nothing.

STU: Exactly. And here's a guy who actually worked through capitalism, to improve the world.

GLENN: That's why.

JEFFY: Yeah.

STU: And isn't that -- that's why he got beat up by places like the New York Times. But the right jumped on it because, oh, it's a celebrity.

GLENN: It's so weird that you say that. Because I almost said, when he started his RED campaign, I almost said -- that's when I started to like him. Then I thought -- maybe it wasn't. I don't know when -- but it was around that period that I started to think, "I think this guy gets it."

STU: Yeah. And you would talk to I'm sure Bono about a million topics. And you would disagree with him on half of them probably. He's no Libertarian.

GLENN: Sure. But you're a huge fan of his.

STU: I'm a huge fan.

GLENN: Right. You remember the time when I met him and spent like a half hour with him, we just chatted?

PAT: In New York, when he was doing the --

STU: I do remember that.

GLENN: Yeah. You weren't there. But I just chatted with him. We're buds.

PAT: It seems like you didn't even know who he was at that time.

GLENN: I mean, I knew he was part of U2. But I had never seen any of his contests or anything like that, but you --

JEFFY: He was asking you advice.

GLENN: Yeah, he was. He was asking me advice.

STU: Curing deadly diseases, and this is what you're going to focus on.

GLENN: Only because it drives you out of your mind.

STU: It does. It does.

GLENN: Okay. So listen to this from Bono. This came out earlier this week.

BONO: My mother died at my -- her own father's grave site, as he was being lowered into the ground -- I was fourteen.

She left me. But she left me an artist. I began the journey, trying to fill the hole in my heart with music, with my mates, my band mates. Finally, the only thing that could fill it is God's love. And it's a big hole. But luckily, it's a big love. I went finally to Jerusalem on a family pilgrimage.

PAT: Wow. Wow.

BONO: And I went to Golgotha. And I went to the site where -- and I had some time on my own -- where death died.

GLENN: Hmm.

BONO: And I was like, wow, there it is. That's where death died.

And so --

STU: Wow.

BONO: -- I don't really believe in it.

PAT: Wow. From a rock star.

GLENN: That's unbelievable. I've never heard it described as where death died. That is fantastic.

JEFFY: Me either.

STU: He speaks in lyrics in normal conversation.

GLENN: Yeah, I noticed that when I was -- oh, you weren't there.

STU: No. I wasn't.

JEFFY: Oh, man.

PAT: Really, he's almost poetic.

JEFFY: Yeah.

PAT: A lot like Donald Trump, who is also so eloquent, that sometimes it just shoots right over your head.

JEFFY: Right.

PAT: Right.

GLENN: If I may quote what's her name, the country artist -- the girl -- the young girl remember I saw the 100 most important people in the world or influential people in the world thing. She got up in front of Elton John and said, "I have this theory that songs -- love songs are just poetry set to music."

PAT: That was so profound. Wasn't it?

GLENN: So profound. Who was it? I actually like her. She's the big country artist that really respect her for, you know, the way she treats her fans and everything. What's her name?

STU: Taylor Swift.

GLENN: Yeah. Elton John was sitting right in front of her, and he had never heard that before.

JEFFY: He probably never heard that before.

GLENN: I think he put his head in his hands at that point. He's like, oh, dear God.

(laughter)

She didn't say it to a crowd of influential or important people at all.

STU: That's good. U2's 1983 album War has a song called 40. Here's the quote. This is by the Edge, not Bono. The other guy in the band -- one of the other guys in the band, talking about what it came from.

So we had this slightly unusual piece the music, and We said, okay. What are we going to do with it? Bono said, let's do a psalm.

Opened up the Bible, and found Psalm 40. "This is it. Let's do it."

The song title is 40. Within 40 minutes, we had worked out the last few elements from the tune. Bono had sung it. We had mixed it. And literally, after finishing the mix, we walked out the door, and the next band walked in.

But, I mean, they did a song that was based on Psalm 40.

PAT: Wow.

STU: One of their CDs. And this is 1983. This is not a new thing obviously.

GLENN: Is he Catholic?

STU: I think he is, yeah.

JEFFY: Yeah.

GLENN: Is it Scotland that is -- one of the -- is it -- is it -- is the struggle only in Ireland, between the Catholics and the Protestants?

PAT: Yeah, I don't think it's in Scotland.

GLENN: Why not? Aren't they right next door to each other? Aren't they a stone's throw away? Once you throw a mazel tov cocktail from Ireland to Scotland.

PAT: I don't think they do copycat protests. No, I don't think so.

GLENN: You don't think so?

Huh. Because I think they're basically the same country.

STU: Let's leave it to the expert on this debate. Jeffy, how would you describe that?

JEFFY: Describe what?

STU: Yeah. Okay. That's my new thing. Whenever there's a complicated topic, I just throw it to Jeffy as the expert because then he looks dumb instead of me.

GLENN: Right. Okay.

PAT: And then you get something really deep like, ugh.

THESE 19 states joined Desantis' alliance against ESG. Here are their 2 main goals.

On Monday, Biden exercised his veto powers for the first time to strike down a bill that would ban states from taking ESG into consideration when investing state pension funds. In his veto message, Biden said:

Retirement plan fiduciaries should be able to consider any factor that maximizes financial returns for retirees across the country. That's not controversial — that's common sense.

At the risk of using the loaded word "gaslit," it continues to be the operative word in describing the policies coming out of the Biden White House. It is painfully obvious that ESG itself inhibits investors from "maximizing financial returns." That was never ESG's goal in the first place. Yet Biden said the opposite.

ESG aims to incentivize investors to make "socially conscious" (a.k.a woke) investments, even if they are at odds with the greatest return on investment. It has enabled state governments and investment firms to use their monopoly over the investment space to force companies to choose between adopting their woke ESG standards and losing critical investment. Isn't there a word for that? Extortion? Or modern-day politics?

ESG enables state governments to force companies to choose between adopting their woke ESG standards and losing critical investment.

That is the sole reason why Republicans brought the bill to his desk in the first place: As Glenn said, "ESG poses a clear and present danger to the American way of life, the soul of our nation and every sector of our economy. ESG was never about ROI. It was always about pushing a leftist agenda.

And Biden knows this.

Why would he want to give up something that enables his political party and corporate elites to control and manipulate the political affiliations of their people? Who would want to give up that power? Biden certainly doesn't.

And he didn't.

Instead, he boldly asserts the exact opposite: that ESG itself "maximizes financial returns," relying on the divided American people to debate the policy into oblivion, while he gets exactly what he wants: the retention of power over the American consumer. Dare I say again that "gaslit" is the operative word here?

If one thing is clear, it is that we cannot rely on the federal government to act in the best interests of the American people. However, in this critical moment, the state governments are stepping up to do what the federal government refuses to: protecting the rights of the American consumer.

In a joint resolution led by Florida Governor Ron Desantis, 19 states have pledged “to protect individuals from the ESG movement" at the state level. This is critical.

We cannot rely on the federal government to act in the best interests of the American people.

Florida leads Alabama, Alaska, Arkansas, Georgia, Idaho, Iowa, Mississippi, Missouri, Montana, Nebraska, New Hampshire, North Dakota, Oklahoma, South Dakota, Tennessee, Utah, West Virginia and Wyoming in signing the historic policy agreement among all 19 states, pledging to ban ESG practices within their jurisdictions.

The anti-ESG alliance calls ESG what it is:

A direct threat to the American economy, individual economic freedom, and our way of life, putting investment decisions in the hands of the woke mob to bypass the ballot box and inject political ideology into investment decisions, corporate governance, and the everyday economy.

This alliance takes aim at two specific practices used by left-leaning states to force companies to adopt ESG-approved practices.

First, the alliance promises to protect "taxpayers from ESG influences across state systems."

While other states are using YOUR taxpayer dollars to fund pro-ESG corporations, these states pledge to BAN this practice to ensure "that only financial factors are considered to maximize the return on investment."

The chief factor behind any investment should be determining whether that investment yields the maximum return on their investment. However, many states are using YOUR taxpayer-funded pension and retirement funds to invest in ESG-approved businesses. This not only forces businesses to consider adopting ESG standards in hopes of obtaining investment. Moreover, states are using YOUR taxpayer dollars to fund them! Would you want your government to invest your hard-earned money for partisan purposes?

The anti-ESG alliance is taking the politics out of investment and putting consumer power back in the hands of the American people. These state governments pledged to make investment decisions based solely on maximizing the return on investment, not in using your taxpayer dollars to fund their political agendas.

Second, the alliance promises to protect "citizens from ESG influences in the financial sector."

ESG standards force businesses to consider the political leanings of their customer base. For example, Discover announced they will begin tracking its customers' gun-related purchases. One of the leaders behind this push is Amalgamated Bank, which boasts on their website that their institution "supports sustainable organizations, progressive causes, and social justice." Amalgamated Bank CEO Priscilla Sims Brown said:

We all have to do our part to stop gun violence and it sometimes starts with illegal purchases of guns and ammunition The new code will allow us to fully comply with our duty to report suspicious activity and illegal gun sales to authorities without blocking or impeding legal gun sales.

This virtue signaling at the cost of your privacy is earning both Discover and Amalgamated ESG brownie points.

There are countless stories of Americans, like YOU, getting locked out of their bank accounts, dropped as clients, tracked and targeted, all because their personal political beliefs don't align with big corporations' ESG goals. Their individual privacy and dignity as a consumer aren't worth the risk of lowering the company's ESG score.

That's why the anti-ESG alliance is pledging to protect the residents in their states from this corrupt ESG exploitation. The alliance promised to ban "so-called social Credit Scores' in banking and lending practices aimed to prevent citizens from obtaining financial services like loans, lines of credit, and bank accounts."

They also promised to stop "financial institutions from discriminating against customers for their religious, political, or social beliefs, such as owning a firearm, securing the border, or increasing our energy independence."

In short, they have targeted the political extortion hidden behind the virtuous ESG veil to protect citizens from being discriminated against based on political affiliation.

It's time to step up.

Biden may have struck down the effort to restore the freedom of the American consumer at the federal level. However, these states are taking it upon themselves to do what they ought: to ban practices that threaten the freedoms and privacy of their citizens.

If your state did not joining the anti-ESG alliance, it's time to demand that they step up and do their job to protect you and the rest of your fellow citizens from corrupt ESG practices. As Glenn said, "The conservative movement is best when it moves in unison." We must act and unison and push our states to protect our economic freedom and our way of life.

Are YOU prepared? Download Glenn's ULTIMATE preparation guide!

How prepared are YOU to weather a future crisis? We recently published a brand new quiz so you can find out exactly how prepared you are. Whether you're a "prepper" with a bunker fit for the apocolypse or just want to feel more secure for the future, there is always something more to learn. That's why Glenn wants to give his newsletter subscribers his "Ultimate Preparation Guide," filled with practical tips for building a solid foundation to weather future crises. And let's face it—in our crazy world right now, who couldn't use a bit more peace of mind?

Enter your email below to get "Glenn's Ultimate Preparation Guide" sent straight to your inbox!

THESE 12 Republican states are smuggling digital currency through THIS sneaky bill

Dem10 | Getty Images

Editor's Note: Arizona House Bill HB2770 has since been shut down! AZ Rep. Rachel Jones tweeted that the AZ Freedom Caucus shut down the bill before it could reach the board. It is encouraging to see states stepping to protect the American people from getting one step closer to a Central Bank Digital Currency. Hopefully, Arizona will be a precedent for the other states!

On today's radio broadcast, Glenn warned about dangerous Central Bank Digital Currency (CBDC) language being smuggled into routine legislation in REPUBLICAN-led states. This is unacceptable, and as Glenn said, we can't let this legislation pass as it now stands.

The legislation being used to smuggle in this CBDC language is the Uniform Commercial Code (UCC), a routine piece of legislation passed on the state level that helps standardize commercial and business transactions. However, a new round of UCCs being deliberated RIGHT NOW amongst a swath of Republican-led states anticipate the use of "electronic money." In a public letter sent to the Republican states currently deliberating this legislation, the Pro-Family Legislative Network said this can only refer to the Central Bank Digital Currency (CBDC) under consideration and testing by the Federal Reserve. Biden's Executive Order 14067 issued in March of 2022 started the push for CBDC, and now these states, knowingly or unknowingly, are laying the legislative groundwork for making CBDC a reality.

There is absolutely no reason why Republican-led states should aid in laying the foundation for CBDC, yet 12 of them are deliberating it RIGHT NOW, with one UCC bill already on one GOP governor's desk! We have to act NOW to stop these UCCs in their tracks and demand our lawmakers amend the bills without the "electronic money" language.

If your state is listed below, contact your representative NOW to put an end to CBDC language.

1. North Dakota

North Dakota House Bill HB1082 passed BOTH chambers and is now sitting on Governor Burgum's desk. Burgun has 3 DAYS to veto this bill once it's placed on his desk—if not, it will pass automatically. If you are a North Dakota resident, it is absolutely CRUCIAL that you contact Governor Burgum's office NOW and demand that he veto this bill and re-introduce it without the "electronic money" language.

2. Arizona

Arizona House Bill HB2770 has been SHUT DOWN! See the above editor's note for more details.

Arizona House Bill HB2770 passed the House majority and minority caucuses. Arizona residents, contact your representative's office NOW so that they amend this bill without the "electronic money" language.

3. Arkansas

Arkansas House Bill HB1588 is in committee, and if passed, will head to the House floor. Though the bill is only in its beginning stages, it's important for Arkansas residents to stop this bill in its tracks and amend it without the "electronic money" language.

4. Missouri

Missouri House Bill HB1165 is also in its beginning stages in committee. That means it's important to contact your representative as soon as possible to amend it without the "electronic money" language.

5. Oklahoma

Oklahoma House Bill HB 2776 passed the House Committee and will go to a chamber vote soon. If passed, it will go to the Senate, then the governor's desk. If you are an Indiana resident, contact your representative's office NOW to amend the bill without the "electronic money" language.

6. Indiana

Indiana Senate Bill SB0486 passed the Senate and is headed to the House. Republicans control Indiana's executive office and BOTH chambers of the legislature. There is no excuse for this bill to pass. If you are an Indiana resident, it's vital you contact your representative NOW and demand they amend this bill without the "electronic money" language.

7. Kentucky

Kentucky Senate Bill SB64 passed the Senate and is now being deliberated in the House. If you live in Kentucky, contact your representative's office to amend the bill without the "electronic money" language.

8. Montana

Montana Senate Bill SB370 passed the Senate and was sent to the House on March 3rd. If you are a Montana resident, contact your representative's office NOW so that the bill doesn't without changing the "electronic money" language.

9. Nebraska

Nebraska's Legislative Bill LB94 passed committee and the first floor vote. As Nebraska only has one legislative chamber, this bill is dangerously close to passing the legislature and being sent to the governor's desk. If you are a Nebraska resident, contact your representative's office NOW and demand they amend the bill without the "electronic money" language.

10. New Hampshire

New Hampshire House Bill HB584 is currently in House committee deliberations and has not yet reached the House floor. If you are a New Hampshire resident, contact your representative's office NOW to amend the bill without the "electronic money" language.

11. Tennessee

Tennessee House Bill HB0640 didn't successfully pass the House. However, it was deferred to a Senate committee and has now taken the form of Senate Bill SB0479, which is now in committee. This bill is still alive, and it's important for you, Tennessee residents, to stop it before it reaches the floor! Contact your representative to amend the bill without the "electronic money" language.

12. Texas

Texas House Bill HB5011 was filed and is ready to be taken up by committee. Fellow Texans, let's not let this bill progress any further! Contact your representative and demand they amend the bill without the "electronic money" language.

6 things you NEED to know about the Silicon Valley Bank collapse

NurPhoto / Contributor | Getty Images

Silicon Valley Bank's collapse is sparking traumatic memories of the 2008 financial crash. Should we be worried SVB is signaling a similar economic catastrophe, or is everyone overreacting to the media's hype? Glenn told his listeners to be "healthily terrified." This event is sure to have ripple effects throughout the economy, but the more you are informed about it, the more you can prepare. Here are 6 things you need to know about Silicon Valley Bank's crash—explained in simple words.

1. The short answer to what happened: SVB didn't have enough money to pay its depositors.

Remember the scene from It's a Wonderful Life when all of the residents make a run on George Bailey's bank demanding their money? Fortunately for them, their money was in the altruistic hands of George Bailey, who used his honeymoon savings to give the depositors the money they demanded.

Silicon Valley Bank's depositors weren't so lucky.

In short, the depositors made a run on Silicon Valley Bank, demanding the withdrawal of their money. But SVB simply didn't have the liquid money available to give their depositors, causing regulators to shut down the bank shortly afterward.

2. It all started with COVID...

Why didn't SVB have enough money for its depositors? To explain this, we have to go back to the pandemic era.

The pandemic saw a rapid decrease in spending and a massive increase in bank deposits. Due to the uncertainty of the future and lockdowns limiting ways to spend money on recreational activities, like restaurants, bars, and other outlets, many Americans stocked up money in their accounts. In fact, SVB's deposits doubled in 2021 alone, bringing in more money than they could lend out to their clients.

To make a return on their available cash, SVB wanted to invest it, as many banks do. Since they had reached their lending limit, they decided to invest it in U.S. Treasury Securities, which are the government's means of funding itself without using taxation (in a nutshell). These are considered "ultra-safe" investments because they are backed by the "full faith and credit of the federal government."

Unlike other forms of investments, investing in Treasuries means the government will do everything within its legal power to pay back the money used to fund itself. In other words, it is typically very safe... so what happened?

3. Then came the magic cocktail—record-high inflation and rising interest rates...

Interest rates ruined the typically "ultra-safe" investment. Due to 40-year record-high inflation, the Fed lifted rates eight times by a total of 4.25 percentage points in 2022, raising interest rates from 0.25 percent to 4.375 percent. This means the value of U.S. Treasuries investments plummeted rapidly. SVB reported that it lost $1.8 billion due to the decreased value of its Treasuries investments after a year of rising interest rates.

This raises the following question: why didn't SVB just weather the storm and wait for interest rates to decrease? There are two issues with this. The first is that, with so many of their assets held up in Treasuries investments, SVB still wouldn't have enough liquid assets to give their depositors during the bank run.

The second issue is that Treasuries investments have a ten-year limit. In 2021 during the Trump administration, interest rates were at an all-time low of 0.125 percent.

The record-fast increase of interest rates in 2022 caused very little chance for rates to go back down to their historic 2021 lows within ten years for banks to make their money back on their investments.

To avoid this, SVB planned to sell their investments at a loss and re-purchase Treasuries investments at the decreased value, giving them an extra ten years to bet on decreased interest rates in the future.

But people caught on to SVB's plan and didn't want to ride with the risk.

4. Account holders withdrew their money... FAST.

As aforementioned, SVP lost $1.8 billion when it sold its depleted Treasuries investments. While they were betting on being able to re-purchase the devalued securities, hoping that they would go up in value in the future with lowered interest rates, investors were worried about the risk.

Once they made the announcement of their $1.8 billion loss, their stocks began to drop, and venture capitalists warned the companies they invest in to pull out of SVB. This had a snowball effect, leading to a "bank run" of depositors demanding to withdraw their money from their SVB accounts.

This led to the perfect storm: SVB's investment losses coupled with the influx of withdrawals were so immense that regulators had to step in and shut the bank down to protect depositors. The government currently "running" SVB, for all practical purposes, is the Federal Deposit Insurance Corporation (FDIC). The FDIC closed SVB on Friday and reopened the bank on Monday, March 13th as the Deposit Insurance Bank of Santa Clara.

5. Some people may lose their money. 

Banks insure accounts with $250,000 or less with FDIC insurance. That means, in cases of bank failure, exactly like this one, the FDIC covers all accounts less than $250,000. The FDIC said SVB customers who had less than $250,000 in their accounts will have access to all of their money when the bank reopens. Since it reopened this week, they should have access to their funds.

However, many of SVB's depositors had more than $250,000 in their accounts—it is Silicon Valley after all. Therefore, their accounts were not covered by FDIC insurance. Will they get their money back? There is a chance that they will not.

It is unclear how much SVB currently has to cover uninsured deposits. It is likely not enough. The FDIC has issued a "Receiver's Certificate" to the uninsured account holders with the amount in their account that is not covered by FDIC insurance.

The FDIC said it will pay some of the uninsured deposits by next week by liquidating any additional assets held by SVB. However, if the liquidated assets are not enough, many of SVB's uninsured account holders could lose their money for good.

6. Is this 2008 all over again?

SVB's collapse was the largest bank failure since 2008, when Washington Mutual failed with $307 billion in assets. Its failure, along with the collapse of the Lehman Brother's investment bank, triggered the worst financial crisis since the Great Depression. Are we in danger of repeating 2008?

Some argue that we are not in danger of another economic catastrophe, simply because SVB holds less than 1 percent of the nation's assets. However, as Glenn warns, there is a danger of banks repeating the same mistakes as SVP.

SVP wasn't the only bank to use its surplus deposits to invest in U.S. Treasuries, which means that other banks are wrestling with the depleted value of their securities investments due to rising interest rates.

Bank of America, for example, lost $109 billion in their securities investments due to rising interest rates, the most among its peers—and Bank of America is no small fish in the ocean of assets.

Other major banks recorded other massive losses in their securities investments due to rising interest rates. JP Morgan Chase lost $36 billion, Wells Fargo lost $41 billion, Citigroup lost $25 billion, and Goldman Sachs lost $1 billion. If the little banks collapse, will they get the same effort and attention from the federal government as the "big guys?"

The critic may argue that these are still small values given the incredibly large amount of assets held in banks nationwide. However, this is missing the point. Major banks have majorly invested in securities since the pandemic-era skyrocketing rate of deposits. Now those investments are depleted in value.

They can either sell those investments at a loss, or they can wait and hope that they will recover over time. However, if those investments are no longer liquid, what happens when their depositors come knocking? Will they have enough liquid assets to cover a massive bank run? These are the lingering questions that our banks need to address.

As Glenn says, this will impact you—it is only a matter of time. What will you do to prepare?