Let’s get something straight. It was a bailout. We, the American people, bailed out a lot of rich investors who had deposits in Silicon Valley Bank.
Bailout
The media highlighted the voices of many who put ridiculous possibilities for the reasons for the failure of Silicon Value Bank. They allowed the WOKE argument, the Diversity, Equity, & Inclusion (DEI) argument, the inflation argument, the interest rates argument, and many others to create a bait-and-switch paradigm that takes one eye off of the issue. The financial sector creates instruments not to do good or produce a product or service beneficial to society but parasitic instruments to enrich those with capital. If a product or something good comes out of it, then it is a PR moment to capitalize on as the scam continues.
The FDIC’s funds, by law, insured $250,000 per account. President Biden used his power to extend that to deposits of any size. While investors in the bank stock proper will lose their investment, there are instruments that will allow the recovery of much of that. But make no mistake, account over $250,000 receive a bailout. When they claim that the FDIC is paying for the accounts and, as such, taxpayers are not on the hook, that may be seemingly true but factually false. The banks pass all those fees right back to the taxpayers with higher fees and lower interest on their deposits.
While I understand that President Biden HAD to bail these banks out, instead of stressing that it is not a bailout or would not affect taxpayers, he should have talked about regulating the financial sector so they would stop the soil-wash-rinse-repeat cycle. They beg the government to make them whole when they expectedly screw up and pay politicians to keep the government off of their backs when they are profiting and accumulating their ill-gotten unearned gains.
