Biden and the great “un-bailout”

The last five days have been an earthquake – a financial earthquake destroying billions of dollars. And the FedGov, led by dear old Uncle Joe (and his puppetmasters), isn’t responding to repair the damage, rescue the real survivors, and protect people.

Nope, of course not. Business as usual for the FedGov. Are you “fed up” yet?

As the folks over at Paradigm pointed out, the Sacramento thugs “protected us” by starting to shut down one of the banksters: Silicon Valley Bank, because their balance sheet was an incredible $2.5 BILLION in the red. And no way to come up with that money, apparently. We’ve been learning that this was another example, like that piece of work Sam Bankman-Friedman and the lost $32 billion, of the fraud and insane business practices and theft of the financial industry.

And Silicon Valley Bank apparently is “essential” to a whole bunch of Silicon Valley (and foreign) companies’ financing. Including, no doubt, a whole bunch of those who lose billions of dollars a year yet are supposed to be worth billions and billions.

To us, this is worse than the crypto scam of Bankman-Friedman: supposedly both State and FedGov regulations, from both the Federal Reserve and the Federal Deposit Insurance Corporation, are our watchmen. They are supposed to keep this sort of garbage from happening. In reality, they seem to be co-conspirators and beneficiares.

Ove the weekend, not just this bank but another biggie, Signature Bank, were closed down. More billions. Since these are “too big to fail” the Feds (Treasury Department, Federal Reserve, Securities and Exchange Commission, etc.) invented a way to bail them out – while claiming (to back up Uncle Joe’s “reassuring” rhetoric) that it isn’t a bailout. Got that?

ALL the depositors – even those with more than $250,000 in an account (the limit that FDIC is supposed to cover) are going to be “made whole.” Supposedly they will get every penny back – maybe even interest (pitiful as that may be) up to last weekend.

(Don’t believe it in the least. Years ago, some of us here at TPOL had money deposited in an “Industrial Bank” in Colorado, supposedly insured/guaranteed by a government agency for far more than the few thousand we had been able to save. Guess what: we got about a nickel of every dollar we had deposited. Interest? Ha, don’t make me cry.)

As Paradigm quoted: “It’s technically not a bailout in the traditional sense,” says Sean Ring of  The Rude Awakening.

Even if some or all of the depositors are paid, the shareholders in the Silicon Valley Bank will lose every dime. And mil. And SVB bondholders are being hung out to dry. No insurance for bonds.

“But depositors’ funds over $250,000 are getting bailed out,” Sean says for emphasis. “And how? By a ‘special assessment’ on banks. And who ultimately pays for that? You. With your fees and commissions and anything else you pay your bank.”

In other words, do you do business with a small, locally-owned, locally-managed bank? Say Pioneer Bank and Trust in South Dakota? Or Dolores State Bank in Colorado? THEY are the ones getting hit with the “special assessment.” But their money comes from whom? Oh, yeah, look in the mirror, folks.

And it isn’t the badly managed, rapacious, and “evil” banks that will pay that (neither Pioneer nor DSB are badly managed and seem to be less greedy than the average bank). No, it is the banks that DO treat their customers’ and their customers’ money with responsbility.

So expect check fees and parking fees and deposit fees to all go up. And expect interest rates to once again spiral down – at least as far as interest paid to US. Expect loan interest rates to climb even higher than the 25% that some credit cards are already charging. So who pays? WE do. Not the banksters: not the management of the two banks. NOT the State and FedGov bureaucrats, much less the legisgators in Sacramento or the Congresscritturs in DC.

You can be sure, in fact, that the two banks (and the others now getting ready to crash) made sure that their nest-eggs are protected. And probably with a lot of gold and silver, not just increasingly worthless greenback FRNs. Just as the politicians and bureaucrats do.

Expect this to be the beginning. The beginning of the end? Hard to say. But be prepared for the economic collapse of the States to speed up and get worse.

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