Normal people should be furious. Once again, the government changed the rules everyone lives by for a small, extremely wealthy, and politically connected group of people.
Last week, America experienced the second and third-largest bank failures in our nation’s history. Of course, you wouldn’t know it from Joe Biden’s behavior — he took a weekend vacation.
A $30 billion deposit influx from biggest U.S. banks fails to calm jittery investors
This crisis may not be as bad as 2007-08 but Biden’s bank bailout shows what a risk to the global system it already poses
California governor Gavin Newsom (D.) helped persuade President Joe Biden to bail out Silicon Valley Bank and was one of the first politicians to praise the move. His assistance comes years after the failed bank began lobbying California’s government and donating to Newsom’s wife.
In financial markets, the tide has been going out for a while and is still receding. To paraphrase Warren Buffett, we are starting to get a good look at who has been swimming naked. It isn’t pretty.
His latest bailout is a solution for him now and a problem for us later.
Notice that the giant rout in bank stocks on Monday came after, not before, Washington stepped in with funding help and an implicit universal deposit guarantee in the wake of the federal seizure of California’s struggling Silicon Valley Bank and New York’s Signature Bank.
President Biden tried to reassure Americans early Monday morning that the banking system is safe and not to worry about the failures of Silicon Valley (SVB) and Signature banks. Markets didn’t believe him because bank stocks took another plunge, with some down 60% or more.
Another Devil’s advocate © 2021. All rights reserved.
