Staff Reports
Over the weekend, Silicon Valley Bank (SVB) collapsed under the weight of its own losses, unable to meet its obligations after a run on the bank. This institution, explicitly catering to tech startups, saw significant losses due to the fluctuations in the tech market in which it had heavily invested. This collapse was inevitable, as the bank was left exposed after Wall Street took a hammer to the tech industry. The bank had announced its need to raise massive capital to cover its losses, which only sparked further panic as it struggled to do so. Eventually, the Federal Deposit Insurance Corporation had to step in to take control.
https://twitter.com/seanmdav/status/1635122379646189570?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1635122379646189570%7Ctwgr%5Ecd100dffc87a038700fde303c106d642f974ae64%7Ctwcon%5Es1_c10&ref_url=https%3A%2F%2Ftownhall.com%2Ftipsheet%2Fmattvespa%2F2023%2F03%2F14%2Ffederalist-editor-nails-the-populist-outrage-that-could-come-from-a-svb-bailout-with-one-tweet-n2620592
The Biden administration is now guaranteeing deposit security, including uninsured amounts, above the FDIC’s $250,000 limit. NBC News reports that this will be taken out of the corporation’s Deposit Insurance Fund, despite Biden’s claim that it would not cost taxpayers a dime—fantasy land, indeed. While it is understandable to want to protect deposits at banks, the federal government giving a bailout to Silicon Valley while ignoring the citizens of East Palestine is simply unacceptable.
https://twitter.com/seanmdav/status/1635123834172116994?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1635123834172116994%7Ctwgr%5Ecd100dffc87a038700fde303c106d642f974ae64%7Ctwcon%5Es1_c10&ref_url=https%3A%2F%2Ftownhall.com%2Ftipsheet%2Fmattvespa%2F2023%2F03%2F14%2Ffederalist-editor-nails-the-populist-outrage-that-could-come-from-a-svb-bailout-with-one-tweet-n2620592
This is worth a read if you’re confused about SVB. The bank itself, at least for now, is not getting bailed out. It’s depositers who are getting more than was guaranteed.
Is Silicon Valley Bank getting a government bailout? Not in the 2008 sense https://t.co/XFciPqsy5e
— Ben Goggin (@BenjaminGoggin) March 13, 2023
It took almost a month for the Biden administration to send Transportation Secretary Pete Buttigieg to East Palestine, Ohio—the site of the current toxic train derailment that could make for an environmental calamity. And at the same time, just a few weeks after the toxic train derailment, the Biden administration rushed in to help rich and wealthy, left-wing whites from Silicon Valley. This is yet another instance of the Biden administration valuing only the people who vote for them and turning their backs on the American people, particularly middle America.
These crises deserved equal attention and rapid responses, but only one got that treatment. The people of East Palestine will now be billed for the assistance that they need, along with the rest of us. This situation bears an eerie resemblance to the one in which the government and bankers destroyed the economy, causing people who couldn’t make their mortgage payments to lose their homes. Yet, after this vast destruction, bankers who nearly ruined the entire global financial system got bonuses and $700 billion in bailouts. This is the exact type of behavior that could catalyze a new wave of populism, bringing about a return of someone like Donald Trump to the White House.
