Krystal and Saagar react to Trump criticizing the bailout of Silicon Valley Bank in the wake of its collapse.
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On Thursday, former President Donald Trump criticized Silicon Valley Bank’s (SVB) bailout, calling it a “disgrace” and a “rip-off.”
According to Trump, the bank received millions of dollars in funds from the Paycheck Protection Program (PPP), a federal program designed to help small businesses weather the economic impact of the COVID-19 pandemic. However, the former president argued that SVB is not a small business and therefore should not have received the funds.
Moreover, Trump claimed that SVB used the bailout money to enrich its executives while failing to support the small businesses it was intended to help. He also suggested that the bank’s actions were indicative of a broader problem within the financial industry.
In a statement, Trump said, “This is just another example of the swamp creatures getting rich at the expense of hardworking Americans. SVB and other big banks use these programs as a way to pad their own pockets and perpetuate the rigged system that allows them to rake in profits while leaving struggling businesses and families behind.”
Trump’s criticism of SVB comes as he’s been making a series of public statements since leaving office in January. The former president has been consistent in his criticism of the financial industry, calling for reforms to protect American taxpayers from banks’ risky behavior.
What is SVB?
Silicon Valley Bank is a California-based bank that specializes in providing financing and other services to technology and other innovation-driven companies. The bank has been in operation since the early 1980s and has served some of the most high-profile companies in the technology sector, including Google, Tesla, and Twitter.
Why did SVB receive PPP funding?
As one of the largest banks in Silicon Valley, SVB was eligible to receive PPP funds under the CARES Act, the federal government’s COVID-19 relief package. The bank received $337 million in PPP funding, which it used to help finance small businesses affected by the pandemic.
What is the controversy around SVB’s bailout?
According to Trump, the controversy around SVB’s bailout is twofold. First, Trump argues that SVB is not a small business and therefore should not have received the PPP funds. Second, he suggests that SVB used the bailout money to enrich its executives while failing to support the small businesses it was intended to help.
What is Donald Trump’s plan for reforming the financial industry?
Since leaving office, Trump has been consistent in his calls for reforming the financial industry. The former president has called for a return to the Glass-Steagall Act, a Depression-era law that separated commercial and investment banking activities. Trump has also called for greater transparency in the banking industry and for tougher regulatory oversight to prevent another financial crisis.
In conclusion, Trump’s criticism of SVB’s bailout highlights the ongoing debate about how to best support small businesses during the COVID-19 pandemic. While some argue that banks like SVB are essential to supporting innovation-driven companies, others point to their outsized influence and the potential for abuse. Regardless of the debate, it’s clear that Trump will continue to be a vocal critic of the financial industry and its role in American life.
Holy sh** if Trump just repeats that statement over and over again he will win this coming election. I say this as someone who despises him. That issue alone and that answer is a silver bullet for the GOP.
Biden is a sellout for the credit card and banking system. He was and never will be for the people. Look at Delaware it’s a Tax heaven.
Seems Saagar is a closeted supporter of the orange ape, always happy to say he's right without mentioning all the ape says are lies, he had never delivered on his lies, and all indications says he never will
That's the fastest I have seen Trump speak.
I think that the fed should have raised the interest rates during the end of the Obama admin. and the Trump admin slowly ESPECIALLY if the economy was "the best economy." Interest rates should have room of a percent or two to drop as a relief tool when we hit recessions not as a tool to falsely inflate economic growth.
Kinda hard to increase the supply side when costs are going up and up due to oil shortages caused by a multitude of factors including decisions made by the current President.
Please quit referring to subscribers as "your subs". It sounds cringe in a condescending way. TY
Correction Trump was for raising rates before he won the election was not against the rates going up after he was elected you can go back and watch CNBC with him on the show
Just saying corporate price gouging doesn’t make it true guys. Corporate profit margin was 13% before the pandemic. Listening to these two you wold think it spiked during the pandemic; guess what it was? 4%. Then it went all the way back up to… yep 13%. Where is the greedy business here? Please any data other than revenues or profit totals.
It is not just corporate that is gouging, it is also he rest of the sheep following them! The simple example is look at Airbnb prices from a year ago. That is what is now compounding the problem now by a factor of 10. Greed and Gluttony good vices to have?
The fact that still most of my friends who are not dumb people think that this wasn’t a bailout truly blows my f’n mind
This kind of makes me take Ryan Grimms argument that this was somewhat intentional more seriously… That the bank run was caused exactly for this reason.. The reason SVB defaulted was because of a (somewhat random) bank run… And because interest rates had gone up, and they had to sell their bonds to cover the withdrawals, at a loss, they basically defaulted… I still haven't seen a great explanation as to why there was even the run in the first place, but it's a great thing for Wall St. and Banks to point at and say "Hey POWELL… Looks like you might have raised interest rates too high…. It'd be shame if say… Banks started failing because of it…"
Trump knows, the only "right" way to bail someone out is to cut their taxes & shift the burden towards lower income Americans with sunsetting tax cuts.
trump would most def bailed them out… he … is… an… oligrach.
Inflation is caused by monopoly capitalism due to money-iin-politics.
Krystal hasn’t the slightest idea as to why inflation is rising. Google PPP loans and just look at the hundreds of millions handed out in your area.
Are we ignoring that Trump was the President that appointed Powell to chairman of the Federal Reserve? Most people were pointing out that Powell was not an economist by a hedge fund guy when that appointment was made.
It's the sanctions that are driving up prices the most.
@2:20 for the love of God Krystal …INFLATION IS THE EXPANSION OF THE MONEY SUPPLY !!! (Printing Money) …those things you listed are contributing factors that pile on but that's not the root cause .
Trump should have never pressured Powell to keeps rates so low and we might have been able to curb inflation before it ran rampant. We can’t have a zero rate environment long term. If Powell would have incrementally raised rates 25bps a quarter, there wouldn’t have been such a large shock but could have culled inflation. Obviously this is through 20/20 hindsight but trump was so infatuated with having a roaring economy while he was in office and for reelection, he lost sight of long term implications which is another reason why the political system in the US is broken. Oh and before I get torn apart, I will vote for trump in the 2024 election if he wins the primary.
Trump is sometimes veryyyy smart
The 2016 instincts are coming back
The problem with Trump's analysis is that it is just an analysis. You can appropriately identify a problem, but whether you actually will fix it when given the opportunity – that's the question.
Wow, he nailed it
Raising Interest Rates is only going to make inflation worse. It gives the Government more money so they can hand out more money which makes inflation worse.
Well Trump cut the regulations put in place after the 2008 crisis, and people are surprised this is happening again? LMFAO
Inflation has nothing to do with the government printing trillions in the last four years?
Krystal in genuine visible pain rn
Trump is a lot of awful
But, there is no Russia/Ukraine conflict if hes Prez.
Tell me im wrong.
“I love negative interest rates”.
Donald Trump
Damn, Trump giving me a chub this morning
If you know the better tool to crush inflation, the whole economic profession would really like to know it, you might get a very influential paper. I would really recommend that you do not say stuff that something that 99% percent of professional economist believe in is wrong, and at the same time not propose anything else real (not imaginary, like "fix the supply side")
Despite the economic crisis, this is still a good time to invest in Gold and crypto investing in different streams of income in other not to depend on government for funds and avoid all the chitchat about the inflation.
Being a Bernie supporter, I don;t want to hear Krystal say anything about "pseudo populism" it doesn't get much more pseudo than Sanders.
Don't be fooled, what Trump says and what he actually does is not the same thing.
The Fed needs to stop printing money. The government needs to cut spending.
The rest is performative.
Krystal's face goes our anytime something good is said about Trump.
King Trumpo is running to the "left" just like he did to HRC, that Neo-Liberal, corporate conservative shill/stooge.
As a faux populist he will demolish all these GOP/RW hacks whose policies no one likes.
Of course, he'll run to the "left" of a senile, Neo-Liberal, corporate conservative shill/stooge in Brandon.
Game, set, match!!!
Who cares what Trump thinks? His opinions are not newsworthy.
Broken clock is right twice a day.
Adderall much Mr T?
"It's confused a little bit and you have to read the tea leaves" further illustrates Krystal knows the bullshit of mainstream media cold, but when it comes to economic policy she is winging it at every step. Trump was incredibly concise in his response, and I don't relish saying that because I think he's fucking potato.
I thought Biden said that there would be no bail-out. Are his supporters down to two weeks now between him making a claim and them accepting that he lied?
Biden hasn’t said anything because he doesn’t know what the HELL is going on!!!!