{"id":344538,"date":"2023-03-17T17:20:37","date_gmt":"2023-03-17T21:20:37","guid":{"rendered":"https:\/\/www.sgtreport.com\/?p=344538"},"modified":"2023-03-17T03:12:30","modified_gmt":"2023-03-17T07:12:30","slug":"david-stockman-on-washingtons-panicked-bailout-of-bank-deposits-heres-what-comes-next","status":"publish","type":"post","link":"https:\/\/www.sgtreport.com\/2023\/03\/david-stockman-on-washingtons-panicked-bailout-of-bank-deposits-heres-what-comes-next\/","title":{"rendered":"David Stockman on Washington\u2019s Panicked Bailout of Bank Deposits\u2026 Here\u2019s What Comes Next"},"content":{"rendered":"

by David Stockman, International Man<\/a>:<\/em><\/p>\n

\"\"<\/p>\n

Why would you throw-in the towel now? We are referring to the Fed\u2019s belated battle against inflation, which evidences few signs of having been successful.<\/p>\n

Yet that\u2019s what the entitled herd on Wall Street is loudly demanding. As usual, they want the stock indexes to start going back up after an extended drought and are using the purported \u201cfinancial crisis\u201d among smaller banks as the pretext.<\/p>\n

TRUTH LIVES on at\u00a0https:\/\/sgtreport.tv\/<\/a><\/p>\n

Well, no, there isn\u2019t any preventable crisis in the small banking sector. As we have demonstrated with respect to SVB and Signature Bank, and these are only the tip of the iceberg, the reckless cowboys who were running these institutions put their uninsured depositors at risk, and both should now be getting their just deserts.<\/p>\n

To wit, executive stock options in the sector have plunged or become worthless, and that\u2019s exactly the way capitalism is supposed to work. Likewise, on an honest free market their negligent large depositors should be losing their shirts, too.<\/p>\n

After all, who ever told the latter that they were guaranteed 100 cents on the dollar by Uncle Sam? So it was their job, not the responsibility of the state, to look out for the safety of their money.<\/p>\n

If the American people actually wanted the big boys bailed out, the Congress has had decades since at least the savings and loan crisis back in the 1980s to legislate a safety net for all depositors. But it didn\u2019t for the good reason that 100% deposit guarantees would be a sure-fire recipe for reckless speculation by bankers on the asset-side of their balance sheets; and also because there was no consensus to put taxpayers in harms\u2019 way in behalf of the working cash of Fortune 500 companies, smaller businesses, hedge funds, affluent depositors and an assortment of Silicon Valley VCs, founders, start-ups and billionaires, among countless others of the undeserving.<\/p>\n

And for crying out loud, forget this baloney about the bailouts aren\u2019t costing taxpayers a dime because they are being paid for by the banks via insurance premium payments to the FDIC fund. Well, yes, when the Congress wants to disguise a tax they call it an \u201cinsurance premium\u201d, as if its victims had the choice to elect coverage or not. But when $18 trillion of deposits are being assessed in order to bailout careless large depositors who paid no attention to what was happening to their money, then that\u2019s an onerous tax by any other name.<\/p>\n

Accordingly, Washington\u2019s panicked bailout of $9 trillion of uninsured deposits held by big and small companies, hedge funds and affluent customers over the weekend was therefore nothing less than a gift to the undeserving. And now we find out the two banks that have been explicitly funded 100% by Uncle Sam\u2014SVB and Signature Bank\u2014were deep into woke investing and conduct. That makes the bailout by Janet Yellen & Co. especially galling.<\/p>\n

Read More @ InternationalMan.com<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

by David Stockman, International Man: Why would you throw-in the towel now? We are referring to the Fed\u2019s belated battle against inflation, which evidences few signs of having been successful. Yet that\u2019s what the entitled herd on Wall Street is loudly demanding. As usual, they want the stock indexes to start going back up after […]<\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[150733],"_links":{"self":[{"href":"https:\/\/www.sgtreport.com\/wp-json\/wp\/v2\/posts\/344538"}],"collection":[{"href":"https:\/\/www.sgtreport.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sgtreport.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sgtreport.com\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sgtreport.com\/wp-json\/wp\/v2\/comments?post=344538"}],"version-history":[{"count":0,"href":"https:\/\/www.sgtreport.com\/wp-json\/wp\/v2\/posts\/344538\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.sgtreport.com\/wp-json\/wp\/v2\/media?parent=344538"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sgtreport.com\/wp-json\/wp\/v2\/categories?post=344538"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sgtreport.com\/wp-json\/wp\/v2\/tags?post=344538"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}