Dems Create and ‘Solve’ the Banking Crisis
It’s all about Democrat regulators and politicians saving Democrat investors.
Joe Biden is bailing out his too-big-to-fail wealthy investor friends in Big Tech and Big Climate. If you understand that, you get the big picture with his rescue of Silicon Valley Bank (SVB) and Signature Bank in recent days.
Big Tech firms not only give Democrats an awful lot of money, but they stand as the Praetorian Guard for the flow of information. No one circles the wagons for Democrats like social media “fact-checkers.” That is an invaluable contribution to Democrats. Indeed, the censorship of the story about Hunter Biden’s laptop and Joe Biden’s corruption likely saved Biden from losing the 2020 presidential election. He is, of course, grateful.
As for the ecofascists, Mark Alexander notes in his in-depth history of this collapse: “SVB banked for Biden’s favorite business constituency — more than 1,550 ‘climate change’ technology firms developing solar, hydrogen, and battery storage. SVB issued them billions in loans, and many were profiting on the tax credits included in Biden’s co-called Inflation Reduction Act.”
These Democrat allies aren’t exactly your average middle-class Joes, either. According to Jim Geraghty, “As of the end of last year, 93 percent of the money in Silicon Valley Bank was above that $250,000 threshold and not covered by the FDIC.” Maybe the vast majority of those accounts are held by small businesses, but maybe not. Either way, the money above that $250,000 per account, Geraghty says, “will come from the Deposit Insurance Fund of the FDIC,” which is ultimately taxpayer-backed.
It’s hard to overstate the future consequences. Philip Klein notes that this bailout “has created a huge moral hazard by signaling that the $250,000 FDIC limit on deposit insurance does not exist in practice.”
In 2010, when he signed the Dodd-Frank Wall Street Reform and Consumer Protection Act, Barack Obama promised, “There will be no more tax-funded bailouts — period.”
Biden effectively reiterated that yesterday: “No losses will be borne by the taxpayers.”
The truth is, American taxpayers will bear the financial burden of two big banks overextending themselves to Democrat allies. The Wall Street Journal editorial board calls it “an income transfer from average Americans to deep-pocketed investors.” The overextension, in turn, goes back to Democrat regulation of the banking industry.
Notably, one Democrat who bears more responsibility than most is Barney Frank, the man hilariously parodied by the late Rush Limbaugh as the “banking queen.” Frank was, along with Chris Dodd, the author of the biggest financial regulatory behemoth in American history. While creating a half-trillion-dollar bailout for banks, the law essentially codified “too big to fail,” which was the very thing Democrats promised to end.
Oddly enough, reports The Washington Times, Frank “was a director at Signature Bank until the New York Division of Financial Services took it over Sunday and gave control of it to the FDIC.”
So what does Banker Frank say caused this collapse? “Digital currency,” a.k.a. cryptocurrency, which he called “a new and destabilizing — potentially destabilizing — element” in the system.“ What he didn’t tell you is that Signature Bank was increasingly dealing in crypto under his direction.
Ultimately what we have here is Democrats in Congress legislating in ways that favor Democrat investors and then when things go sideways Democrats step in to save the day. Democrats create a problem, then Democrats "solve” a problem while blaming someone else. Same as it ever was.
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