Biden Reveals Location of the Money Tree!

It's the magical Money Tree! No losses will be borne by the taxpayers. Instead, the money will come from the fees that banks pay into the deposit insurance fund. Because of the actions that our regulators have already taken, every American should feel confident that their deposits will be there if and when they need them.”
  - Joe Biden, statement on the collapse of the Silicon Valley Bank (SVB), March 12, 2023

So, Biden stated the $212,000,000,000 required to bail out all of Silicon Valley Bank’s depositors – including paying off the 85% of accounts not covered by FDIC Insurance – won’t come from taxes you’ve already paid or from tax increases. That’s nice to know, since Joe Biden has already proposed more than five trillion dollars in new taxes and tax increases to pay for the massive deficit spending authorized by him and his fellow Liberal Democrats.

But, where did the money the banks paid to insure your bank account(s) come from?

  • one of the many fees the bank charges you to use your bank?

  • additional money printed by the Federal Government that was loaned to the bank from US Treasury (and the banks must pay back to Uncle Sam, with interest)?

  • money from other Government programs such as Welfare, Transportation, Defense, etc. (which will result in cutbacks in those areas)?

  • or, someplace else?

I’m definitely not a financial expert, but it seems to me to cover the financial losses of Silicon Valley Bank either

Wallet emptying into Uncle Sam's hand. YOU’RE going to pay more in bank fees, or
YOU’RE going to get less interest on your bank accounts, or
YOU’RE going to get less than $250,000 from the Federal Deposit Insurance Corporation (FDIC) when YOUR bank goes bust, or
YOU’RE going to get less services and goods from Uncle Sam (like, say, welfare, homeland security, national defense, etc.), or
YOU’RE going to pay higher prices because of the increased inflation from the money printed to pay the losses.

Looks like Biden’s revealed the source of the “Money Tree”… it’s YOU.

But wait, there’s MORE! Not only did ordinary Americans “not pay” to bail out Silicon Valley Bank (at the time the 16th largest bank in the USA and the 2nd biggest bank failure in history… second only to the failure of Washington Mutual in 2008 under Democrat President Barack Obama… but, I digress ;-) ) but now we get to “not pay” for the bailout and takeover by the FDIC of First Republic Bank, once the 13th largest US bank and now the new “2nd biggest bank failure in history” (sorry, Silicon Valley Bank).

Additional reading:

“The largest direct beneficiaries of the [2008 bank bailouts] were the unsecured creditors of financial institutions. Those conclusions stand in sharp contrast to popular accounts that claim there was no cost because the money was repaid, and with claims of costs in the multiple trillions of dollars. The cost is large enough to suggest the importance of revisiting whether there might have been less expensive ways to intervene to stabilize markets.”
  - “Measuring the Cost of Bailouts“, Deborah Lucas, MIT, February, 2019

2008 Bailout Tracker: Discover where every dollar of $634,800,000,000 in bailout money went.

Thanks for Reading!

This entry was posted in Are You Kidding me?, Not Surprisingly, Quotes, The Economy and tagged , , , , , , , , , . Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *


You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

Why ask?