Watching Tucker Carlson, I learned that Silicon Valley Bank, a large concern in California, went under today. This is very bad news for the US economy.
New York CNN — Silicon Valley Bank collapsed Friday morning after a stunning 48 hours in which a bank run and a capital crisis led to the second-largest failure of a financial institution in US history.
This is very bad news for the US economy. When depositors lose faith in their banks, they try to take their money out, which leads to a run on the bank, which leads to a capital crisis, which leads to a bank failure. Small depositors are often insured by the FDIC, but we're not talking about small depositors here. We're talking about large depositors losing lots of money, which has a downstream, ripple effect,
It has been a hundred years since the last big depression. The best-case scenario would be to have adults in charge of the baking system, but we have Janet Yellen. The very fact that I know who the Treasury head is does not engender confidence. We may be in for a rocky ride.
5 comments:
I am CERTAIN we are in for a rocky ride. The sooner the better; things didn't get resolved the way they should have in 2008 because of government intervention, so we still have to deal with them now...
Jonathan
According to the "FED"; there are only two ways to fight inflation. One, raise the interest rate so as to make borrowing money too expensive; it isn't worth the trouble. And the other way is to have the federal government stop spending.
Guess which one they ALWAYS pick!??!?!?
The Fed has two courses of action, both of which end in disaster. They can keep raising the interest rates and slow the economy to where it was at the end of the Carter administration only it would be worse this time. You'd have no growth and high unemployment and with the current bunch, out of control govt spending.
Or they can turn on the money spigot and get low interest rates to keep businesses afloat, supercharging inflation and heading us to economic disaster.This is what they have been doing since 2008 and we see how well that works. The can has been kicked to the end of the road and black swans are on their way home.
Check out the Board of Directors. It reads like a super-woke list of people hired for wokeness, not for experience in banking.
https://www.diversityrolemodels.org/about-us/board-of-directors
Doesn't seem to me it would take much for that bunch to drive any organization, including a bank, into the ground.
It's come out that the day of or day before they passed out large bonus's to all the executives.
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