Well, it certainly looks that way, and now the Federal Reserve and Jerome Powell are in a very sticky spot. You see, inflation remains at 6%, far above the 2% target rate, and it continues to punish millions of Americans with variable-rate mortgages and car loans. This inflation is also pounding them when they go to the grocery store or look at their credit card bill.
The collapse of Silicon Valley Bank on Friday, followed by Signature Bank in New York over the weekend, underscores just how dangerous this entire situation is—not just to the banks but to all of us.
The Biden Administration decided to bail out the banks and protect some of America’s wealthiest people by guaranteeing that none of their money would be lost—and then claiming it was not a bailout—but of course, it was.
And by bailing out the banks, they have made clear that those in charge can take bigger risks because there is no actual risk. The cost of failure will be put on the backs of taxpayers like you and me.
In fact, the President of SVB spread around millions of dollars in bonuses over the past couple of weeks—fully aware that his bank was going down the toilet. But I don’t think he will ever be held responsible—and neither will his senior staff. They may have been fired, but they walked away with their pockets stuffed full of cash.
I mean, we all know now that standard banking principles were not applied here. SVB had a Director of Diversity, Equity, and Inclusion, but they didn’t have a person in charge of risk management to prevent what just happened.
It seems like the priorities were completely off base. Like everything the Democrats touch—it turned to crap—and don’t worry, there is more to come.
The root cause of the bank collapses we have seen so far is the reckless spending of the Biden Administration that caused out-of-control inflation, which led to a decrease in the value of bonds. Once SVB’s bonds started losing value, they panicked and tried to sell them at a deep discount—and BOOM—it all fell apart.
And if you think this has passed, I am sorry to say you are almost certainly wrong.
The Biden Administration attacked energy on day one, and that assault has continued. The resulting higher energy prices impact Americans at the grocery store, on the electric bill, and everywhere else.
As we continue down the road to economic suicide, it seems like the Democrats just don’t get it. Either they believe that Utopia is real or just don’t care what it takes to seize and maintain power. I honestly don’t have any idea what has happened to them—but they are careening out of control with no end in sight.
And that is not all—this president and his administration are so out of touch with ordinary Americans I have no idea what they are thinking anymore. They think that totally whacko ideas are somehow popular with all of us—like transgender policies protecting the very few at the expense of everyone else—I mean, they have gone mad.
Burning the Constitution is high on the list of priorities for the Marxist clan, too. I mean—you might as well create a one-party system by lying about everything to get control.