President Joe Biden and the Democrats want you to think America’s “banking system is safe.” That’s why they just delivered a big-time bailout to SVB (even though they’re not calling it a bailout.)
When asked by reporters if the collapse of SVB would have a ripple effect on other banks, Biden has flat-out ignored the question while repeating like a good little puppet: “the system is safe, the system is safe.”
Except it’s not.
SVB could very well become the first major domino to fall as we saw the Dow drop over 600 points Wednesday morning over the downgrade of another major bank.
The Fed and the FDIC has promised to “backstop” deposits should another SVB-like scenario present itself, but there’s one major problem: they don’t have the money!
There’s simply not enough money on the federal reserve’s balance sheet to backstop the deposits as they have promised they would, meaning it’s all just an illusion.
Take away the Fed’s promise to protect depositors and people suddenly become MUCH less trusting of the banking system, leading to more runs on banks which, just like SVB, would be their downfall.
Your money is not safe and the banks are certainly not. But hey, at least Joe Biden seems to think so!
But then again, he is the same person that’s been telling us the economy is “strong as hell!” so I’m not entirely sure how much I’d trust him.
The banks are being held up by a VERY THIN safety net and when that fails – buckle up! Watch the video here to see how close to CHAOS we are.
Of course other banks will fail.. Banks are constantly failing, you just don’t hear about it.