Video: The Fed just did a MASSIVE Bailout
Jerome Powell and the Federal Reserve just orchestrated a massive bank BAILOUT. The Fed will print money to make sure the depositors of Silicon Valley Bank have full access to their uninsured deposits. A bailout that could cost over $150 Billion. This bailout is bad for working Americans. Because it forces the Fed to print money to save the deposits of wealthy tech executives in California as well as tech companies like Roku. Normally FDIC insurance won’t cover past $250,000 in a bank account. But now that guarantee was just made unlimited by the Federal Reserve, Janet Yellen, and Joe Biden. Which will likely contribute to more moral hazard and risk taking in the US financial system. Especially because the Fed did not fix the two key problems facing banks right now: 1) a contracting money supply, and 2) 0% reserve requirements Due to the Fed’s quantitative tightening program, the money supply in America is contracting. Which is historically a signal of depression and bank crises. Moreover, banks are now no longer required to hold a minimum amount of reserves, meaning they are more exposed to a banking crises.