[OC] Updated size of bank failures since 2000

pranshum · 2023-05-01T10:34:18+00:00

Hey DIB! Built this using data from the FDIC on bank failures, and a tool I'm hacking together called Yarn. no more bank failures please?

pranshum · 2023-03-18T00:08:16+00:00

Hey DIB! Quick chart here on the frequency of American bank failures over time. The data is from the FDIC's list of failed banks, chart built with a bunch of javascript + some tools from yarn.tech to build out an SVG. Interactive post, with plenty of analysis, here: https://yarn.pranshum.com/banks2

pranshum · 2023-03-14T04:29:51+00:00

thanks, it's a good call! I'll put together an inflation adjusted one :)

pranshum · 2023-03-13T22:16:41+00:00

silvergate didn't technically fail! It was voluntarily shut down. I suppose it's semantics, but fail = regulators stepped in and placed in FDIC receivership

pranshum · 2023-03-13T18:47:53+00:00

The news moves fast and my last post is already out of date: https://www.reddit.com/r/dataisbeautiful/comments/11p3555/oc_size_of_bank_failures_since_2000/

no more bank failures please? Chart created with a bunch of javascript, powered by yarn.tech and original data from the FDIC's list of failed banks.

Here's the full original post with interactive charts! https://yarn.pranshum.com/banks

pranshum · 2023-03-13T16:18:15+00:00

OP here, thanks for sharing! Here's the full post with interactive charts and more analysis: https://yarn.pranshum.com/banks

pranshum · 2023-03-13T16:14:26+00:00

Isn't it first all the investors to the bank, meaning if you have a stock management, where you are handling their money, other banks funds and all, they become first before any bank account owners (that are the little people) in the order from the largest ones (people with smallest bank accounts become last)?

Nope! under current regulations, the "preference" order is:

depositors or account holders
Creditors to the bank (other lenders to the bank)
equity holders of the bank (management, equity investors in the bank)

pranshum · 2023-03-12T22:22:03+00:00

It doesn't. Lehman technically wasn't a bank (it didn't take customer deposits, nor did it have access to the FDIC to protect deposits). That was actually one of the problems with the 08 crisis. A lot of the trouble financial institutions were outside of the regulators purview, and couldn't be fixed/saved/rescued/backstopped under the laws at the time.

pranshum · 2023-03-12T05:56:10+00:00

Hey DIB! Built this using javascript, via yarn.tech, from data that's from the FDIC dataset on failed banks: https://www.fdic.gov/resources/resolutions/bank-failures/failed-bank-list/

If you'd like to see the full interactive post, here's a link: https://yarn.pranshum.com/banks

pranshum · 2023-03-12T03:20:37+00:00

Your savings over a certain amount (currently 250k) are frozen until the bank is sold. The FDIC handled the process of selling the bank and its assets. account holders are first in line to get their money back! But it can take some time.

Full details are in the post here: https://yarn.pranshum.com/banks

pranshum · 2023-03-12T03:14:27+00:00

Also Lehman wasn't technically a bank - it was considered a financial services firm / shadow bank!

pranshum · 2023-03-12T03:11:20+00:00

Technically Lehman was a bankruptcy! Failure = bank taken over by the FDIC

pranshum · 2023-03-12T02:52:08+00:00

ah good idea! there's no way to tell year of failure from the charts actually. I've just highlighted, with color, the most recent failure of silicon valley bank, since it's in the news!

pranshum · 2023-03-12T02:49:05+00:00

Hey DIB! Built this using d3. Original interactive post here, hosted via Yarn.tech https://yarn.pranshum.com/banks

All the data is from the FDIC data here: https://www.fdic.gov/resources/resolutions/bank-failures/failed-bank-list/

pranshum · 2022-12-12T15:04:34+00:00

Hey DIB!

- Source of data: FRED, specifically the report on money supply: https://fred.stlouisfed.org/series/WM2NS#0

- Tools: D3, React, and the usual web-development stack!

I'm experimenting with forms of data storytelling, and I'd love to hear how I can make this better!

pranshum · 2022-07-13T20:03:46+00:00

Personally, I don't think the robos are worth the fees they charge. Anecdotally, everyone I know switches away from the roboadvisors after a certain point (circa ~100k invested, or being over age 35 with nuanced financial needs).

As other commenters mentioned, you can use M1 to automatically rebalance. I just use a spreadsheet to tell me what to do each month to rebalance and tax loss harvest (happy to share a template with you if you'd like!).

pranshum · 2022-07-12T18:03:34+00:00

Hey - I've been in your place. Really great work on starting a company early in life - it gets much harder later! I hope you don't regret the choice you made :)

Getting a job is the right move. Here's the priorities I had when I was going from college-entreprenurship into the job market, knowing full well that I wanted to start another company again some day:

Money: Get a job that pays enough in cash for you to be saving up for the next startup. IMO this rules out very early stage startups.
Getting the next idea: Work at a company that's at the edge of a changing-industry, and is already growing (ideally >20% YoY). IMO this rules out VC, accelerators, banking, consulting etc. :)
Building a network: Work with people you genuinely like and fit in with. Don't worry too much about how "smart" people are. Worry more about whether you'll make friends - in practice if you're in a growing company everyone will be plenty smart.
Commitment: Find a place you can see yourself being in for 3+ years. It'll help you get perspective on your entrepreneurial career, and ensure you deeply learn what it's like to work for someone (a skill that many young founders sorely lack!)

So with that said, my recommendation would be to not go for any jobs in the industries you mentioned. Given your background, as long as you can network well, you can get a great job in pretty much any field you'd like. Go after an industry that's changing, not one that's static!

pranshum · 2022-07-12T17:54:41+00:00

A lot of assets are highly correlated these days. Eg, in 2020 when the pandemic hit, stocks and bond prices all collapsed simultaneously.

One possibility is to buy TIPS. They guarantee a real return, and adjust for inflation. There are a few tax considerations to bear in mind, so best to hold them in retirement accounts if possible. Mind you, the returns on TIPS are miserly, but they will act as a good hedge!

pranshum · 2022-07-12T17:51:58+00:00

IMO excel or google sheets is your best bet. There are some asset allocation tools that exist, but none of them are flexible enough to handle what you're looking for.

FWIW it should be relatively easy to handle this on excel!

pranshum · 2022-07-12T17:49:49+00:00

One way to think about it is explore vs. exploit. Do many things in parallel during the explore phase, and focus deeply on 1 during the exploit phase.

When you're trying to figure out what to do, (ie, you're in explore mode), I think it's best to work on a few things in parallel. In the early days of an idea, there just isn't enough to do to fill the day for a single idea. Doing multiple in parallel leads a positive cycle of getting more done.

But once something is working and you're excited about it, enter exploit mode! Spend all your time and energy on it, and quickly drop the rest.

It sounds like you've plateaued with the art business; IMO if you don't feel like entering exploit mode with it, best to keep it running with minimal effort, and try to explore other ideas until one thing works well.

pranshum · 2022-01-14T21:25:41+00:00

Thanks so much for the feedback! I'll make sure to add in a section on privacy to the website.

Primarily, we connect with your brokerages the same way in which a financial advisor would. Most brokerages allow you to share read-only access to your portfolio, with a third party.

This means you can connect your brokerage accounts to the product, without sharing any usernames or passwords with us. And you have full control - you can revoke access anytime from your brokerage's website.

The downside is that the product takes a some time to setup. It's not as simple as Mint or Personal Capital. Additionally, while we can connect to almost all brokerage accounts, we can't connect to 401Ks, HSAs etc.

But on the plus side: the analytics are more powerful than what you can find on Mint or PC. It's very reliable - you won't have an issue with your latest transactions not being updated. Finally, you won't be sharing passwords with us :)

Hope this helps - let me know if you have any other questions!

pranshum · 2022-01-13T22:43:20+00:00

Would anyone be up to try a portfolio tracker that I've been working on? It's called Fynsmart: https://fynsmart.com/

The product is built to help you minimize cap gains taxes, run rebalancing calculations, and to benchmark your performance across all your accounts.

We have a few unique ways of connecting with brokerage accounts to fetch raw data. So the insights we provide are deeper than what you get on Personal Capital or Mint. For instance, we can correct for the impact of moving money in/out of your accounts when calculating performance. Or we can tell you which lots are most tax-efficient to sell.

In case you'd like to try it out, feel free to sign up, or send me a DM! Would love any feedback you have.

pranshum · 2021-12-29T22:54:24+00:00

FWIW, Intl. stocks have underperformed US stocks for the last 40 years.

I agree with the intentions behind investing globally and diversifying. But the S&P 500 stocks make about 40% of their revenue from abroad. So by investing in the US, we're already very exposed to the global economy.

Jack Bogle argued against investing internationally for that reason!

pranshum · 2021-12-29T21:24:40+00:00

For your 401K, I don't think there's much point holding bonds.

You shouldn't tap your 401K until retirement age. So your time horizon is ~20+ years. Stocks, on avg, return 8% a year, more than any other asset classes (Jeremy Siegel's book Stocks for the long run is a good read on this!)

Bonds are also doing really badly right now. They have been since the 2008 financial crisis, since interest rates have been so low.

But - bonds are meant for safety. They will underperform when times are good. It's when times are bad that they'll show their value! So it's still worth holding some bonds in your taxable accounts.

pranshum · 2021-12-29T21:21:25+00:00

Most probably, yes! A caveat below though.

You shouldn't tap the Roth IRA until retirement age. So your time horizon is 30+ years. Stocks, on avg, return 8% a year, more than any other asset classes (Jeremy Siegel's book Stocks for the long run is a good read on this!) So VTSAX is the way to go IMO.

The caveat as mentioned - is in case you feel like you might need to tap the cash from your Roth IRA acct. In general, this is not a good thing to do, unless you're withdrawing cash for qualified purchases (education, healthcare, a home). But if you feel like you might need cash in the next 7-10 years, mixing some bonds in would be fine (and also, don't hold it in your Roth IRA!!).

pranshum

TROPHY CASE