President Joe Biden made a brief statement this morning in an attempt to try quell fears and instill some kind of confidence that the economy and banking system are still operable and “safe.”
This of course comes on the heels of the collapse of Silicon Valley Bank on Friday, along with other banks to follow and subsequent bank runs around the country affecting medium and local institutions.
The Federal Reserve has resorted to emergency measures in an attempt to try and stabilize the mess, essentially initiating “quantitative easing light” and bailing-out the banks to save the depositors to prevent widespread bank runs.
In a brief statement Biden had this to say:
Good morning, everyone. Before I leave for California, I want to briefly speak about what’s happening to Silicon Valley Bank and Signature Bank.
Today, thanks to the quick action of my administration over the past few days, Americans can have confidence that the banking system is safe. Your deposits will be there when you need them.
Small businesses across the country that had deposit accounts at these banks can breathe easier knowing they’ll be able to pay their workers and pay their bills. And their hardworking employees can breathe easier as well.
Last week, when we learned of the problems of the banks and the impact they could have on jobs, some small businesses, and the banking system overall, I instructed my team to act quickly to protect these interests. They have done that. They have done that.
On Friday, the government regulator in charge, the FDIC, took control of Silicon Valley Bank’s assets. And over the weekend, it took control of Signature Bank’s assets.
Treasury Secretary Yellen and a team of banking regulators have taken action — immediate action. And here are the highlights:
First, all customers who had deposits in these banks can rest assured — I want to — rest assured they’ll be protected and they’ll have access to their money as of today. That includes small businesses across the country that banked there and need to make payroll, pay their bills, and stay open for business.
No losses will be — and I want — this is an important point — no losses will be borne by the taxpayers. Let me repeat that: 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 of that — 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.
Second, the management of these banks will be fired. If the bank is taken over by FDIC, the people running the bank should not work there anymore.
Third, investors in the banks will not be protected. They knowingly took a risk and when the risk didn’t pay off, investors lose their money. That’s how capitalism works.
And fourth, there are important questions of how these banks got into these circumstances in the first place. We must get the full accounting of what happened and why those responsible can be held accountable. In my administration, no one, in my view — no one is above the law.
And finally, we must reduce the risks of this happening again. During the Obama-Biden administration, we put in place tough requirements on banks like Silicon Valley Bank and Signature Bank, including the Dodd-Frank Law, to make sure the crisis we saw in 2008 would not happen again.
Unfortunately, the last administration rolled back some of these requirements. I’m going to ask Congress and the banking regulators to strengthen the rules for banks to make it less likely that this kind of bank failure will happen again and to protect American jobs and small businesses.
Look, the bottom line is this: Americans can rest assured that our banking system is safe. Your deposits are safe.
Let me also assure you: We will not stop at this. We’ll do whatever is needed on top of all this.
Let’s also take a look — a moment to put the situation in a broader context. We have made strong economic progress in the past two years. We’ve created more than 12 million new jobs — more jobs in two years than any President has ever created in a single four-year term. Unemployment is below 4 percent for 14 straight months. Take-home pay for workers is going up, especially for lower- and middle-income workers. And we’ve seen record numbers of people apply to start new businesses — more than 10 million of them — more than 10 million applications over the last two years starting businesses.
Now we need to keep the program — this progress going. That’s what swift action that my administration, over the past few years, is all about: protecting depositors, protecting the banking system, protecting the economic gains we have made together for the American people.
Thank you. God bless you. And may God protect our troops. See you in California.
AUTHOR COMMENTARY
[16] Thus saith the LORD of hosts, Hearken not unto the words of the prophets that prophesy unto you: they make you vain: they speak a vision of their own heart, and not out of the mouth of the LORD. [17] They say still unto them that despise me, The LORD hath said, Ye shall have peace; and they say unto every one that walketh after the imagination of his own heart, No evil shall come upon you. Jeremiah 23:16-17
If the handlers have to float-out Sloppy Joe to read a script and say that the economy is a well-oiled machine, then we KNOW it’s the opposite! Obama, Trump, and Biden have continuously said that things were getting better when they were not. All we have done since 2008 is put Band-Aids on gunshot wounds and kick the can down the road.
The system is broken and the economy is toast, has been, and will only get worse.
I have been warning about this since the start of The WinePress. It’s inevitable. Should you panic? Well, if you have not been diligent and prudent, and took wise measures to prepare and prevail for this, then you should be worried. But if you have been listening to the advice, tracking where it’s all going, and taking steps to prepare against it and capitalize on it, and rely and trust the Lord for guidance, you should be cool as a cucumber.
[7] Who goeth a warfare any time at his own charges? who planteth a vineyard, and eateth not of the fruit thereof? or who feedeth a flock, and eateth not of the milk of the flock? [8] Say I these things as a man? or saith not the law the same also? [9] For it is written in the law of Moses, Thou shalt not muzzle the mouth of the ox that treadeth out the corn. Doth God take care for oxen? [10] Or saith he it altogether for our sakes? For our sakes, no doubt, this is written: that he that ploweth should plow in hope; and that he that thresheth in hope should be partaker of his hope. (1 Corinthians 9:7-10).
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