On Wednesday, the Federal Reserve raised interest rates again despite the problems in the banking system. In this episode of the Friday Gold Wrap, host Mike Maharrey talks about the Fed’s inflationary efforts to paper over the problems in the financial system while still keeping up the pretense of an inflation fight. He says it’s like trying to thread a needle with rope.
After the Federal Reserve raised interest rates another 25 basis points, Fed Chairman Jerome Powell assured everybody that the collapse of SVB and Signature Bank “are not weaknesses that are at all broadly through the banking system.” That raises a question: if that’s true, why did the Fed bail out the entire banking system?
The fact is Powell’s spin isn’t true. Furthermore, the breakdown in the banking system is a sign of a much bigger problem, as Ron Paul points out.
The Federal Reserve is trying to walk a tightrope — in a hurricane.
After rate hikes resulted in the collapse of Silicon Valley Bank and Signature Bank, the Federal Reserve and the US Treasury stepped in with a bailout. With that hole in the dam seemingly plugged for the time being, the Fed pushed forward and raised interest rates by another 25 basis points at its March meeting.
The dust continues to settle after the failure of Silicon Valley Bank and Signature Bank, and the ensuing government bailout. Many people in the mainstream seem to think the crisis has passed. But a closer look at the condition of the banking system reveals these two banks were just the tip of the iceberg. Peter Schiff appeared on NewsMax Wake Up America to talk about the financial crisis. He said that there are more bailouts to come.
As the old saying goes, if it looks like a duck, walks like a duck, and quacks like a duck, it’s probably a duck.
Well, if it looks like a bailout, walks like a bailout, and talks like a bailout, it’s probably a bailout.
In the wake of two bank failures, the Federal Reserve and the US Treasury announced a bank bailout program.
Last week, Silicon Valley Bank was shuttered by federal authorities after the bank suffered significant losses selling bonds in order to raise capital. When that news hit, depositors rushed to pull funds from the bank, making it functionally insolvent. Then over the weekend, federal authorities shut down Signature Bank.
Venture capitalist Chamath Palihapitiya made waves when he said during a CNBC interview that the government should not bail out companies impacted by the coronavirus shutdowns. “On Main Street today, people are getting wiped out. Right now, rich CEOs are not, boards that have horrible governance are not,” he said. “What we’ve done is disproportionately prop up poor-performing CEOs and boards, and you have to wash these people out.”
During an interview on RT, Peter Schiff said he’s been saying the same thing since day one.