Houston: We have a serious problem in the Biden administration
We have MAIN problem with this Biden administration. He is so radically left-wing that he is now endangering the entire economy, not just the banking system. Biden lied to the public, saying that the Silicon Valley bank had no buyers. Actually in London HSBC immediately stepped forward to broker a deal for the SVB in London. Why was HSBC buying SVB’s overseas operations while Biden claimed there were “no buyers” for SVB in the US? When they told me it didn’t make sense. Something went wrong with the regulators, who usually call other banks right away and resolve their marriages. I know I got one of those calls from the Japanese government to buy a brokerage house in Tokyo when the French bank Palace went bankrupt.
When Biden tried to convince Americans that the banking system was safe and that they had nothing to worry about, there was a sharp sense of distrust among the professionals inside. Markets plummeted on Monday, with many bank stocks down 60% or more. I found it incredible that no one behind the scenes wanted to buy this bank. The Federal Deposit Insurance Corporation said it was unable to find a private buyer for SVB when HSBC quickly bought up SVB in London.
Rumors began to circulate that what was really happening was that FDIC Chairman Martin Grunberg was rejecting deals. Rather, there was actually talk of only covering $250,000 and fucking the rest. Uninsured depositors were about 85%. In addition, there were interbank liabilities that exist in any such transaction that the Biden administration did not acknowledge. Take Mr. Biden’s promise that “Taxpayers will not suffer any losses.” He did say: “The money will come from fees that banks pay to the Deposit Insurance Fund.” Commissions paid by banks NEVER cover 85% of deposits that were not insured.
It became obvious that if the FDIC allowed the bank to fail and everyone, including Oprah Winfrey, lost 85% of deposits, it would cause a monumental banking crisis across the country. I couldn’t scream that loud from every rooftop in Washington. Because SVB was in California, the hopelessly left state, queues caught fire in Washington as Democratic donors started yelling loudly, forcing the FDIC to announce Sunday that it would cover uninsured deposits at SVB and Signature Bank as part of its ” systemic risk. Chances are the “guy” who pulled this off wasn’t common sense, but Democratic insiders, and they saw their donation disappear in the middle of the night.
Biden also claimed that:
“Investors in banks will not be protected. They deliberately took the risk, and when the risk didn’t pay off, the investors lost their money. That’s how capitalism works.”
What I do know is that the most sophisticated banks hedge their interest rate risk, but in the case of SVB and Signature, they apparently believed the left’s vision that inflation would come down and the Fed wouldn’t keep raising rates. These are clearly political fools, so imbued with the ideology of the leftist regime that they know nothing about central banks. Inflation began to rise from January 2020. Why did the Fed wait until 2022 to start raising rates?
Just because the Fed KNOWS historically, the most important fact in stimulating inflation is ALWAYS war! Remember World War I, World War II, the Korean War and Vietnam? As soon as the war in Ukraine started, that is, when the Fed raised rates, that’s all. NEVER Powell will never even mention the war because he can’t criticize this insane Biden administration.
The Fed will not publicly criticize an administration or Congress that controls fiscal policy. This Ukrainian war was engineered by neocons, directed by neocons who have infiltrated the Biden administration and now completely control US foreign policy, acting unconstitutionally. They have waged this war against Russia with no apparent end and have no intention of ever entering into any peace negotiations and should be called before Congress and held accountable for FIRST TIME for more than 30 years of endless wars.
As always, Biden blamed the Trump administration for a banking panic for changing some of the rules of the 2010 Dodd-Frank Act, which was a 2018 bipartisan banking law. It simply raised the threshold for classifying systemically important financial institutions (Sifi) to $250 billion from $50 billion in assets. This was not Trump’s personal position. This revision would not have prevented SVB or Signature failures. Dodd-Frank urged banks to stockpile these assets, especially sensitive to rapidly rising interest rates. However, regulators have somehow failed to track this interest rate duration risk. But everything that ever goes wrong is always Trump’s fault, right down to the migration crisis and global warming. Biden never takes responsibility for anything.
We have REALLY a very serious problem within the Biden administration. it’s a radical LEFT an administration that is so committed to dividing the country into rich and poor that it now threatens the entire economy. The markets show that we have problems with bank balance sheets and/or income statements that go much deeper as there is an unaccounted for duration risk in the face of another endless neocon war. For the FDIC to even consider only the bare minimum and refuse to allow a bigger bank to acquire SVB in a shotgun wedding because that would allow rich banks to get bigger, this means we have some serious infiltration of radical left agendas into the Biden administration, which could knock everything down.
The White House’s response to such a financial panic has been to do nothing, blame Trump, and swindle savers. This undermines the credibility of the government, which could not be expected with such a degree of incompetence.
It will be another Biden scandal, but one that will destroy the long-term viability of the United States. No one personally could have imagined that this level of complete incompetence would ever take over the White House. Rejecting applications for SVB was stupid and meant a complete removal of fiscal responsibility.