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That was quick!!! ("Changed our minds. Bailing out SVB after all")

At 930 pm this evening (45 minutes ago) wire services reported that the US government changed its mind. ALL depositors at failed SVB will get all their money back. Especially the ultra rich customers with those $10 million certificates of deposit, which aren't supposed to be guaranteed.

This is contrary to Janet Yellen's " no bailout" press conference yesterday.

Oh, and banking regulators ALSO seized "Signature Bank" ($110 billion) today. Because it's insolvent too. The 3rd largest bank failure in US history. SVB was number 2. That was 48 hours ago.

The Biden administration is reminding everyone not to panic. Employment numbers are great. Inflation might be tamed soon. The $31 trillion federal debt is not a problem. The proposed 2024 budget with massive spending and tax increases will probably help. Our leaders are releasing truckloads of cash from the federal "strategic cash reserves" like they did with gasoline just before the 2022 mid-term elections.

DO NOT PANIC !!! This is a presidential order!
 
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EatTheRich

President
Changing their minds publicly is a recipe for disaster, especially when there is inevitably a bank that doesn’t get bailed out.

The way out of this morass is to nationalize the credit industry and the deposits in the investment banks and invest them in industrial capital used for production under workers’ control.
 
Changing their minds publicly is a recipe for disaster, especially when there is inevitably a bank that doesn’t get bailed out.

The way out of this morass is to nationalize the credit industry and the deposits in the investment banks and invest them in industrial capital used for production under workers’ control.
It's the amazing SPEED with which Janet was overruled (by "someone") that astonishes here.

Less than 24 hours.

This is totally about propping up the stock market, and "mega donors" rather than following the. Banking law says only the first $250,000 is covered by insurance or each depositor. Not millions and millions. This rescue is totally falling on "ordinary people" who didn't have millions on deposit at SVB. Little guys bailing out the fat-cats.

Mr. President - Janet Yellen is your direct report. Did YOU overrule her? If not, would you please tell us who did, and why/how that happened?
 

PhilFish

Administrator
Staff member
It's the amazing SPEED with which Janet was overruled (by "someone") that astonishes here.

Less than 24 hours.

This is totally about propping up the stock market, and "mega donors" rather than following the. Banking law says only the first $250,000 is covered by insurance or each depositor. Not millions and millions. This rescue is totally falling on "ordinary people" who didn't have millions on deposit at SVB. Little guys bailing out the fat-cats.

Mr. President - Janet Yellen is your direct report. Did YOU overrule her? If not, would you please tell us who did, and why/how that happened?
It's to stave off financial calamity......racing to forestall runs on the tech sector and more bank collapse
 

PNWest

America's BEST American: Impartial and Bipartisan
It's to stave off financial calamity......racing to forestall runs on the tech sector and more bank collapse
That is very true.

What needs to be pointed out is the ineptitude of Biden's chosen Secretary of the Treasury in making the no-bail out statement in the first place.

76 year old Janet Yellen simply is not up to the job. This kind of flip-flopping only helps to destroy any remaining confidence in the Biden administration's ability to govern competently. She should have been fired after the debacle of calling inflation "transitory" right before it decimated the economy.
 

PhilFish

Administrator
Staff member
That is very true.

What needs to be pointed out is the ineptitude of Biden's chosen Secretary of the Treasury in making the no-bail out statement in the first place.

76 year old Janet Yellen simply is not up to the job. This kind of flip-flopping only helps to destroy any remaining confidence in the Biden administration's ability to govern competently. She should have been fired after the debacle of calling inflation "transitory" right before it decimated the economy.

yup. that was the action that set the financial and tech sectors on fire over the weekend...
 
https://www.cnbc.com/2023/03/13/thats-how-capitalism-works-biden-says-of-svb-signature-bank-investors-who-lost-money-in-failed-banks.html

Biden's the perfect symbol for capitalism's decline; he's a "leader" incapable of seeing how the internal production structure of US capitalism is the central problem, and he's as clueless as Trump about how to change it.

From April 2021:

https://www.rdwolff.com/increasing_desperation_as_the_us_capitalist_system_declines

"Like all previous economic systems in recorded history, capitalism is on track to repeat the same three-step trip: birth, evolution, and death.

"The timing and other specifics of each system’s trip differ.

"Births and evolutions are commonly experienced as positive, celebrated for their progress and promise.

"The declines and deaths, however, are often denied and usually feel difficult and depressing.

"Notwithstanding endlessly glib political speeches about bright futures, U.S. capitalism has reached and passed its peak. Like the British Empire after World War I, the trip now is painful."
 
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