Bank Bailouts – The Money Goes Somewhere

The recent bank collapse of Silicon Valley Bank and troubles at Credit Suisse torment the market and spread fear amongst investors. Meanwhile, the financial difficulties mean money has been going out from some places, but where does that money go?

Money doesn’t necessarily just disappear, it goes somewhere. Apparently, UBS has the financial strength to absorb Credit Suisse, bringing certainty back into the banking system and showing investors that good businesses get bought out by other businesses when they show weakness.

Investors can hold confidence in the fact that a good business model with plenty of strengths has the potential to be bought out by what could be a better management team and a brighter future. Failure doesn’t always mean the end, simply new beginnings and new opportunity.

One last thing, remember that when the market is down, the market is ‘on sale’.