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US Guarantees All Deposits After Silicon Valley Bank Collapse, as Biden Promises Action

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sanman

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So all depositors are getting full guarantees -- no matter how big their deposite -- even someone with a billion dollars deposited in that bank will be full bailed out by the US govt under Biden:

US guarantees all deposits after Silicon Valley Bank collapse, as Biden promises action

Announcement comes as Signature Bank was closed on Sunday by regulators – the second to fail in a week
www.theguardian.com

The precedent has now been set. We're now living in a world of unlimited guarantees. That means a world of zero risk. That means you can do whatever you want, and the US govt (under Biden) will fully bail you out.
Moral Hazard is obviously an obsolete phrase in this brave new world, where everybody will be guaranteed to have everything -- including a pony.
 
CaughtInThe said:
Joe just keeps kicking ass on every potential disaster that lands on his desk.

And don't listen to the OP. He's on a mission to smear Joe.
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Pfft - his own ass.

 
Anyone notice old Uncle Joe is opening up Alaskan oil reserves to oil companies to the highest bidder? A sure sign he really means to be president for another four years.
 
It’s not at all clear how this is supposedly going to work. The FDIC is guaranteeing 100% of all deposits under a new program called the Bank Term Funding Program which allows banks to take out a loan to cover deposits for up to one year using their assets as collateral. But with SVB in receivership and liquidation pending…who is going to be taking out this loan and under what collateral?
 
Say it with me:

Unlimited Money to SVB!

Unlimited Money for Zelensky!

Unlimited Money-Printing from JPow!

UNLIMITED MONEY!!
 
You were just complaining a few hours ago that Biden had caused the bank failure by tightening the money supply. Now you're mad he's giving them too much.
 
Gatsby said:
You were just complaining a few hours ago that Biden had caused the bank failure by tightening the money supply. Now you're mad he's giving them too much.
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No, Biden didn't tighten the money supply - the US Federal Reserve did. Biden just created the inflation problem that forced the Fed to tighten the money supply.
Biden created that problem by engaging in unlimited spending. Just like he's again doing now through his unlimited bailout.
There can be no such thing as unlimited money. I guess that fact is lost on you. So everytime BidenClaus gifts out all this money, it just causes more inflation.

Top economist Mohamed El-Erian says unlimited deposit guarantee is hard to reverse after SVB fallout: ‘We are now in a different world’

The economist also said that the Fed will likely now "retreat" on interest rate hikes.
fortune.com


Welcome to Venezuela.
 
trouble13 said:
Where is the money to do this coming from?
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The FDIC-insured portion comes from the FDIC, which gets its money from the insurance premiums that all banks pay.
The non-FDIC-insured portion comes from the buyers of Silicon Valley Bank making depositors whole.
 
You are a ridiculous person.
 
Napoleon said:
It’s not at all clear how this is supposedly going to work.
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It works because they're just numbers on a screen.

Is it fair? No, but life isn't fair and the Rich rule the world.
 
Gatsby said:
The FDIC-insured portion comes from the FDIC, which gets its money from the insurance premiums that all banks pay.
The non-FDIC-insured portion comes from the buyers of Silicon Valley Bank making depositors whole.
Click to expand...
The bank has investors willing to buy their debt? More power to them.
 
Gatsby said:
The FDIC-insured portion comes from the FDIC, which gets its money from the insurance premiums that all banks pay.
The non-FDIC-insured portion comes from the buyers of Silicon Valley Bank making depositors whole.
Click to expand...
Actually, with the Federal govt taking over Silicon Valley Bank, the govt will be making depositors whole -- all depositors -- no matter how large their deposits. There' s no cap on the amount of compensation available.
All depositors are being guaranteed, courtesy of the US federal govt.
If you're a billionaire, just deposit all your money in a bank account. Biden will guarantee it.
 
highroller said:
Because Venezuela is well-known for catering to the Rich and Powerful....
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The rich have declared themselves poor -- that's why they're entitled to unlimited compensation from Biden.

Entitlements for the Rich -- I mean, the new "Poor"

 
sanman said:
The rich have declared themselves poor -- that's why they're entitled to unlimited compensation from Biden.

Entitlements for the Rich -- I mean, the new "Poor"

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America has a proud tradition of socialism for the Rich
 

If he didn’t do this and backstop a possible massive contagion and nationwide run on banks, you’ll complain and criticize.

Stop pretending you care either way, you don’t.
 
highroller said:
America has a proud tradition of socialism for the Rich
Click to expand...
Hence the new era of Woke Capital -- because even rich people gotta be protected from Da Man!
 
If we're going to do away with FDIC limits, then fine.

Charge banks (and depositors) enough in premiums to cover the potential losses.
 
Jetboogieman said:
If he didn’t do this and backstop a possible massive contagion and nationwide run on banks, you’ll complain and criticize.
Click to expand...
Given that he was the cause of the contagion, trying to prop him up and promote him like Fauci is equally absurd

Jetboogieman said:
Stop pretending you care either way, you don’t.
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These new precedents being set are going to affect things going forward. And you and I will feel the effects of that over time.
 
sanman said:
Given that he was the cause of the contagion, trying to prop him up and promote him like Fauci is equally absurd


These new precedents being set are going to affect things going forward. And you and I will feel the effects of that over time.
Click to expand...

“Cause of the contagion”

Holy ****.

You love saying the stupidest things on the site.
 
So, you are against depositors being made whole and getting their money back? Ok, go die on that hill. In the meantime, Americans are thankful that Biden has their back.

As a practical matter, securing this bank and Signature Bank, gives other depositors of other banks sends the message that their money is safe and it mitigates other bank runs.
 
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