Billionaire Investor Warns US Capitalism ‘Breaking Down’

This is the dream of the Marxist Democrat destroyers.

Billionaire Investor Ken Griffin Warns US Capitalism ‘Breaking Down’

By: Jack Phillips, The Epoch March 16, 2023:

Ken Griffin, the founder of hedge fund Citadel, said the rescue of Silicon Valley Bank shows the U.S. economic system is “breaking down before our eyes.”

“The U.S. is supposed to be a capitalist economy, and that’s breaking down before our eyes,” Griffin warned when speaking with the Financial Times on Monday after federal agencies said that they would protect SVB depositors, including ones that have $250,000, or above those above the federal insurance limit. Reports said that over 90 percent of SVB’s deposits were uninsured.

“There’s been a loss of financial discipline with the government bailing out depositors in full,” the billionaire added.

Late last week, U.S. regulators shut down SVB after customers withdrew their deposits en masse. Later, the Federal Deposit Insurance Corporation (FDIC) transferred all deposits of Silicon Valley Bank to a newly created entity and ensured that all depositors had access to their funds starting Monday.

Because of the relative strength of the U.S. economy, Griffin argued that the federal government did not need to take such dramatic action. Regulators said such moves were made to prevent broader contagion from afflicting the U.S. banking sector.

“It would have been a great lesson in moral hazard,” he said. “Losses to depositors would have been immaterial, and it would have driven home the point that risk management is essential.”

He continued, “We’re at full employment, credit losses have been minimal, and bank balance sheets are at their strongest ever. We can address the issue of moral hazard from a position of strength.”
Epoch Times Photo