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In this video, I make the argument that Silicon Valley Bank (SVB) should NOT receive a government bailout.
Depositors with less than $250,000 will be made whole by FDIC insurance.
Taxpayer money should never be used to bail out bankers and VCs.
Printing new money to bail out banks increases inflation for the working and middle classes, who are less likely to employ inflation hedges.
If you are moved to help victims of bank collapses, feel free to do so using your own money, not taxpayers’ money.
Not investment advice! Consult a financial advisor.
Silicon Valley Bank is shut down by regulators in biggest bank failure since global financial crisis:
NetBank:
Rust belt:
Opioids and rural America:
Sackler family and the cost of doing business:
How FDA Failures Contributed to the Opioid Crisis:
Billionaires need their bailouts:
Bill Ackman uses CNBC to profit from his short:
Nic Carter wants bailouts:
But Nic Carter has funds stuck at SVB:
David Sacks wants bailouts:
David Sacks likes dumping his Solana on retail investors:
How Warren Buffett Gained from Bank Bailout:
I am not being paid or otherwise compensated by any company or cryptocurrency project that I mention in my videos.
My opinion is not for sale. Please do not contact me with any affiliate or advertising deals.
#svb
#banks
#bitcoin
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The global financial crisis of 2008 saw the collapse of several financial institutions, which prompted governments to step in and bail them out. The bailout was intended to prevent the collapse of the financial system and save millions of jobs. However, this action has been highly criticized by many, as it creates moral hazard and can lead to the poor management of financial institutions. It is why many experts are against bank bailouts ever again.
The argument against bailouts is not new, and it is based on two main reasons. Firstly, a bailout encourages financial institutions to take unnecessary risks, knowing that they will be bailed out by the government in case of a crisis. This moral hazard can cause severe damage to the financial system and can lead to further economic crises.
Secondly, bank bailouts are a transfer of wealth from taxpayers to financial institutions. The use of taxpayer’s money to bail out banks does not only rob the taxpayers of their hard-earned money, but it also creates injustices in the economy, as the benefits go disproportionately to the wealthy.
The argument for bailouts, on the other hand, suggests that the failure of a significant financial institution could lead to the collapse of the entire financial system, resulting in severe economic shock. Proponents of bailouts argue that they can avoid this risk by providing necessary capital injections to ensure that the financial institution does not fail, thus preventing the entire economy from crashing.
However, this argument lacks merit, as it does not consider the long-term implications of such actions. Rather than propping up failing financial institutions, it would be better to allow them to fail, as this would encourage organizations to operate efficiently and prevent them from engaging in reckless behavior in the future.
Furthermore, the use of taxpayer funds to bail out these institutions is not fair. The banks that benefit from bailouts are often the same ones that caused the financial crisis in the first place, making it hard to justify using public funds to help them out. Instead of bailing out failing banks, regulators should focus on appropriate regulations to prevent another crisis from happening.
In conclusion, bank bailouts should never be an option. They encourage financial institutions to engage in reckless behavior, are funded by taxpayers, and disproportionately benefit the wealthy. Instead of relying on bailouts, we should look for ways to prevent financial crises from happening, like enforcing proper regulations, and allow failures to occur to eliminate moral hazard in the financial system.
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Bail out the kids of opioid addicts
Socialism for the rich the free market for the rest.
When banks get bailouts, the top brass takes bonuses.
I was puzzled by his statement of sending cash to the victims: it appears nearly all of them were well off, and those depositors under $250k will be made whole anyway. Was this sarcasm?
Matt, they are screaming bloodcurdling warnings of recession – what’s your outlook like?
Their solution: bank bail ins sucks too
I agree in principle, but that ship has sailed. The system can not survive without bailouts, especially now that the FED is tightening.
So they will plug the hole’s until they see that it is hopeless and then the FED will turn back Dovish.
Meanwhile, educate people on Bitcoin, stay humble and stack sats.
bitcoin is going up!!!! as a stocks fall!!!!! people are finally realizing how bullshit the banks are.
Great video. Isn't it funny how the arguments in the media about spending other people's money disappear when they're talking about bankers. The implication is clear, they literally think they own all money
1000% correct
Some say this is the Great Reset underway!
even better: end the u.s. federal government.
"No bailouts ever!"
"But I'd be happy to accept a bailout for my money effected by SVB"
If we faced 208 crash we would be OK now !
Donate to my bitcoin stack.
And you have the temerity to use wikipedia as a source! Unbelievable.
Nonsense: It didn't enrich the CCP and the Chinese had to work harder than any 'American' has ever worked to earn the pittance paid by American corporates. In fact the reverse happened through the USD 'reserve' currency system – up went US GDP by simply marking up invoices. Bailouts are only the first step; the US takes gold in the most corrupt event.
Reverse socialism for the elite. Outsourcing and its effect on real people. Great insights Matthew. It is time we started caring for the real people and identifying the indescribables. That is true socialism. These faux capitalists have managed to turn capitalism into a dirty word. This needs to be rectified through education. Thanks.
Very good points, I ve subscribed.
You’ve said Matthiew that the Fed will tighten and raise until something breaks. That’s proving to be a truth.
Isn't it fair to invest some money in VC instead of Bitcoin? Those seem relatively non-correlated. That should provide some diversification. It's not "diworseification" like "diversifying" between Bitcoin and Ethereum – it seems like Bitcoin, Real Estate, Stocks, and VC are all viable investments. Sure, Bitcoin is the best of those, but it's a pretty degen Non-Kelley bet to go 100% net worth in Bitcoin if you have the ability to diversify, isn't it?
I wholeheartedly agree!
In 1928 Henry ford said "If the people of the United States understood what Fractional Banking was there would be a revolution tomorrow morning." (LOOK UP FRACTIONAL BANKING)
When there's a run on a bank they simply print more money, ship it over and the run on the bank stops because there's money to be taken out.
UNLESS… the (privately owned) Federal Reserve Bank decides it's time to crash small banks, then they simply don't send over any money (even though they promised to bail out any banks experiencing a run in their contract) and all the small banks crash like a line of dominos.
The big banks buy up the stocks (customers) and change the name on the bank.
JP Morgan (under the umbrella of the Rothschilds Bank) devised the "Bank Run Scheme" in the 1880's on one bank on Madison Avenue which he bought for $1.00 after the successful crash.
It worked so well that he ran it again in 1907 on all the banks in Manhattan.
Then he expanded to make a run on all the banks on the east Coast of the United States, even though he died in 1913 just after he devised the Federal Reserve (Bank) Act that President Woodrow Wilson was forced to sign into law under penalty of the coverup of his election fraud being made public (he was the first of the "Bank Bought Presidents", he was almost the first President to be publicly lynched if he didn't sign).
The devastation of the East Coast Banks went ahead on schedule in 1929, but with so many countries abroad and people in the US invested the whole economic world collapsed and JP Morgan ended up with all the functional banks in the US and many abroad.
John Wayne said "Life's tough, it's even tougher when you're stupid".
Keep putting your money (read time and energy) into banks… and look up the definition of FRACTIONAL BANKING.
The Federal Reserve is about to own the tech Industries of America.
I think bailouts are great!!! Bail out all the banks. For every bank that gets bailed out, 1 million new bitcoin holders are created.
Damn your badass man. Staoshis 5d vision of law commerce has guided you ethical and moral heart for the better:) I’m happy to hear your content
All the more respect admitting your failures. The best elders are the ones who admit there own.
Don’t worry you’re rich enough to get ballots
No bailouts
So they are going to drop rates in the face of high inflation? Essentially it’s financial repression and a means to inflate away the debt by eroding our purchasing power…..cool
Oh man, NetBank, ouch pouring salt on old wounds…
Sounds great Matt, but fascism has a different opinion. Yes big bank bailouts, more money printer, more privatized profits and socialized losses, more inflation. Public policy for 2023 was already purchased back in 2022, good luck voting against that in 2024 or 2028. Truly the best government that money can buy. Right now the goal is to consolidate fascism for their posterity. I'm not a doomer but it will take divine intervention at this point. They've been running from truth and justice their whole lives. The longer they put it off, the worse the overflowing of the cup of wrath will be. Most likely it will be the Alexander Soros generation holding the bag, with the current reigning club of 70+ y.o. American and European elite sickopaths in hell.
So if a bank like SVB fails, and they bail it out, that just means the Federal Government makes good on everyone's deposit? Am I correct about that?
If they do not bail them out, and FDIC just takes over and guarantees $250k max, what happens to deposits over $250k? Isn't that money tied up in loans made by SVB, tied up in the larger economy and multiplied by fractional reserve lending?
I guess what I'm trying to ask is I don't see how either scenario doesn't increase inflation. The only thing that would slow inflation would be for the bank to not fail and everyone make good on their loans. Am I correct about that?
Bailout today. Life is good! I'm going boat shopping…
Bail out time
It’s too late for true capitalism, at least not without a tremendous amount of pain. Welcome to the new tax-and-spend reality of infinite debt and money printing. No one loses… except the taxpayer.
The elites always get bailed out. Printers whirling back up. Buy bitcoin and escape the chaos!
too late, bail outs have already begun
It seems senior SVB Risk Manager Jay Ersapah oversaw woke LGBT Programs at SVB.
No serious risk manager would so waste their time, and no serious bank would hire for diversity over merit.
Get woke, go broke.
Thank you for this video. I wholeheartedly agree. The externalization of costs in all industries, not just the banking industry, is a significant problem — one which, IMO, is tied closely with regulatory capture. If we're going to have a capitalist economy (which I support vehemently), then it should be a genuine free market economy, and government coffers should not be part of the economic equation in any private venture… as you say, "ever."
Very much appreciate your candor and sincerity in this piece. Please keep doing what you do, Your content is always excellent.
Well said. Couldn’t agree more.
Thanks Matt another well informed comment Keep up the good work in educating everyone
Your worst video in a long time. You’re happy to let SVB fail because you’re rich and would be fine. Some of us would have lost our jobs and been completely screwed if they didn’t step in here. Regular folks. We’re not rich. We have families and bills to pay. Have some sympathy.
This is exactly why bitcoin was created, to unmask the VC and the organizations and governments involved in bailing out banks, to prevent this shit show to happen. I will die in bitcoin and if you read and understand what happened in the 2008 crisis (watch Too Big to Fail – The movie based on that) and the bitcoin whitepaper and have time to read/listen to The Book of Satoshi by Phil Champagne I highly recommend it. Thank you for the transparency, Matthew. All the very best!
250k how much Bitcoin is that today……..
Well this aged like milk