The Issue: The Biden administrationās guarantee of all deposits in Silicon Valley Bank after its collapse.
I am not an economist, but I can count (āBailouts Buy Trouble,ā James Bovard, March 15).
The Biden administration šÆhas decided to guarantee the deposits of all Silicon Valley Bank accounts in excess of the legal $250,000 FDIC limitation. This is a recipe for disaster.
According to Bovardās piece, the FDIC reserves an amount of some $128 billion for all bank failures, while the toštal amounš²t of bank deposits exceeds $12 trillion. Can anyone in this administration count?
The FDIC was never meant to guarantee all bank accounts, nor can it. This situation is a direct result of the Fedās monetary polź¦«icy, which kept ļ·½interest rates artificially low for too long. That led to a dramatic increase in the money supply, thus fueling inflation.
Kenneth Fitzgerald
Hicksville
About 15 years ago, we had a financial crisis, precipitated by a couple of decades of foolish cešntral bank policies: Long Term Capital Management, the āGreenspan put,ā artificially low interest rates sparking a home mortgage bubble, mortgage-backed securiāties, etc.
Supposedly all these problems were fixed, except they werenāt. We had the ātoo big to failā banks protected from anš°y and š¶all foolishness, and over a decade of negative real interest rates that fueled a debt bubble like no other.
SVB and others never even botheršed hedging against interest-rate risk, because of the moral hazard created by central bankers. Nobody believed theyād really raise rates.
Now weāre in a pickle. Do we kill the economy witšh higher rates, or do we kill it with hyperinflation? History indicates weāll get the hyperinflation.
Who loses? Those who have been responsible with their money. Who benefitsź¦«? The rich, as usual. This wonāt end well. SVB is the canary in the coal mine.
Barry McIntyre
Calgary, Canada
Any time a bankš collapses, the bailout money sš¤”hould come from the executives at that bank.
They can sell assets, liquidate stocks or whateverš” else they need to do. They created this problem. They should pay for it. Then maybe the execs would straighten things out before they collapse.
Steve Preziosa, Sr.
Deptford Township, NJ
Itās not even a question any longer: Democrats have completely lost their minds (āCensor āEm All,ā Jonathan Turley, PostĀOpinion, March 15).
To even suggest that Big Tech companies ź¦censor social media remarks that are unfavorable to banks now because of the two bank failures is amazingly communist-like. They claim to be worried about other banks being run on because of these failures.
Let me put it simply: Banks hold our money and use it to make money for their investors and depositors. The public has a right to know when a bank is failing, so we can ą½§make our decisions on what to do accordingly.
The Dems keep trying to shut down free sš³peech whenever it suits them.
Good orā bad news, nothing should stop us fšÆrom voicing our concerns about anything that affects the public.
Stephen Colasacco
The Bronx
Treasury Secretary Janet Yellen should be booted out. Sheāį©į©į©į©į©į©ā¤ā¤ā¤ā¤į©ā¤ā¤ā¤ā¤į©ā¤ā¤ā¤ā¤į©š±į©į©į©s just another Democrat who is determined to kill our economy with insane policies instead of intelligent solutions.
The 2008 banking fiasco was never fixed. All those financial geniuses (really foxes) were bš¦rought into the henhouse. Instead of fixing the problem, they did nothing.
Canāt we get some fiscally responsible people in government who care about this country? We are almost bešyond saving.
Joann Mirone
Old Greenwich, Conn.
SVB was a California state-chartered bank. Where was the state regulator, the Department of Financial Protection and Innovation, as SVB was headed to insolvency during the 2022 fed rate hikes? Where was the āproš¦tection?ā
President Biden said thoseį£ responsible will be held accountable and executiź©²ves would be fired. Would that include execs at the California Department of Financial Protection and Innovation?
Andrew Ko
San Marino, Calif.
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