The Silicon Valley Bank failure was induced by government bailouts.

by | Mar 25, 2024 | Bank Failures | 9 comments

The Silicon Valley Bank failure was induced by government bailouts.




Silicon Valley Bank found themselves in a vicious cycle when they continued to operate their business in this way.

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The Silicon Valley Bank, once a prominent institution in the heart of California’s tech hub, has recently faced financial turmoil resulting in its closure. The downfall of this institution can be traced back to government bailouts and their unintended consequences on the banking sector.

In the aftermath of the 2008 financial crisis, the U.S. government implemented massive bailouts to stabilize the banking industry and prevent a total collapse of the economy. While this measure was necessary to prevent widespread chaos, it inadvertently created a moral hazard among financial institutions. The bailouts gave banks a safety net, leading some to take excessive risks knowing that the government would bail them out in case of failure.

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The Silicon Valley Bank, known for its high-risk lending practices to tech startups, took advantage of this situation by extending loans to risky ventures with little regard for their ability to repay. The bank’s management was emboldened by the belief that they were too big to fail and that the government would step in to rescue them if things went south.

However, when the tech bubble burst in the late 2010s, many of the startups that the Silicon Valley Bank had invested in went bankrupt, leaving the bank with a massive amount of bad debt. With its balance sheet in shambles and unable to cover its liabilities, the bank was forced to declare bankruptcy and shut its doors for good.

The failure of the Silicon Valley Bank serves as a cautionary tale about the unintended consequences of government bailouts. While these measures are needed to prevent systemic collapse, they can also create a false sense of security among financial institutions, leading to reckless behavior and eventual downfall.

Moving forward, regulators must strike a balance between stabilizing the economy and allowing for market discipline. It is crucial to hold banks accountable for their actions and ensure that they do not take unnecessary risks at the expense of the public. Only through prudent oversight and regulation can we prevent another financial disaster like the one that brought down the Silicon Valley Bank.

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9 Comments

  1. @Melrose51653

    I thought you were still hiding under the desk because of the spy balloon. Don't care about that if you can be outraged about something new?

  2. @rayvandenberg9554

    And stealing trillions from tax payers is treason.

  3. @johnking4226

    Sooner or NEVER it'll dawn on the Sheeple that this was a Heist.
    Same deal with 08'.

  4. @Dajuhan2u

    I saw that you had only 666 views, so for spiritual reasons I watched your video to make it 667 views.

  5. @old-man463

    thank you for that explanation

  6. @steveikerd7

    The leftist government in control of Biden and America today wants the banks to fail! So, they can take them over. Then comes other things such as energy concerns including oil and gas. Eventually all aspects of American life such as education and lifestyles. Sound farfetched? It has already happened in China and Russia, and people vote there!

  7. @imalive4u169

    The privately owned businesses are no longer privately owned they are regulated by the government. And bailouts guarantee that they remain government regulated. Just like the market isn't really a free market the government regulates the market as well we seen that with the Game Stop fiasco with the stock market.

    Basically because of poor management decisions now more debt is going to the taxpayers while more power over these banks is going to the government.

    Guess what we are no different than how things are ran in Communist China. In which the Chinese Government regulates the businesses in China.

  8. @fkbiden

    Now it's educating the people on what our founding father's wrote to protect ourselves from a TYRANT government!! This administration needs be removed immediately!!! They are ENEMIES OF THE STATE'S!! THEY ARE TYRANTS DESTROYING OUR COUNTRY!!
    This is a direct quote from the second paragraph of the Declaration of Independence:
    That whenever ANY Form of Government becomes destructive of these ends,
    It's the RIGHT of the PEOPLE to ALTER or to ABOLISH it and to institute NEW government
    The definition of treason is what the Bush's, Clinton's, Obama and the Biden administration have done
    This is the direct quote from the Constitution on treason
    Treason
    Any person who levies war against the United States or adheres to it's enemies by giving them aid and comfort has committed TREASON within the meaning of the Constitution The term aid and comfort refers to any act that manifests a betrayal of ALLEGIANCE to the United States such as furnishing enemie's with ARMS, TROOPS TRANSPORTATION,
    SHELTER, or classified information if a subversive act has any leniency to weaken the power of the United States to attack or resist it's enemies, aid and comfort has been given.
    Article lll, Section 3, of the Constitution!!
    Punishable by death!!!?
    Federal Law:: HARBORING UNDOCUMENTED IMMIGRANTS
    " Any person who, knowing that an illegal alien remains in the U.S. in violation of law, conceals, harbors, or shields that person from detection…… shall be fined under this title 18, imprisoned not more than 10 years,"
    WE THE PEOPLE FOR THE PEOPLE BY THE PEOPLE!!
    (When TYRANNY becomes law REBELLION becomes duty!!!)
    Thomas Jefferson
    WAKE UP AMERICA!!
    God gave his Archangel weapons because he knows you don't fight evil with kindness and understanding!!!
    If two or more persons conspire to injure, oppress, threaten, or intimidate any person in any state… in the free exercise or enjoyment of any right or privilege secured to him by the Constitution or laws of the United States,… they shall be fined under this title or imprisoned not more than ten years, or both; and if death results from the acts committed in violation of this section… or an attempt to kill, they shall be fined under this title or imprisoned for any term of years, or for life or for both, or may be sentenced to death. (June 25, 1948)
    18 US CODE 241
    Conspiracy against Rights
    Anti-organized Stalking
    LAW OF LAND
    The general misconception is that any statue passed by legislators bearing the appearance of law constitutes the law of the land. The US Constitution is the supreme law of the land, and any statue, to be valid, must be in agreement. It is impossible for a law which violates the Constitution to valid. This is succinctly stated as follows:::
    " All law's which are repugnant to the Constitution are NULL and VOID."
    Marbury vs. Madison, 5 US (2 Branch) 137, 174, 176, ( 1803 )
    DID YOU KNOW?
    U.S. Citizens have the right to resist an unlawful arrest.
    " Citizens may resist unlawful arrest to the point of taking an arresting officers life if necessary."
    " An illegal arrest is an assualt and battery. The person attempted to be restrained of his liberty has the same right to use force in defending himself as he would in repelling any other assualt and battery."
    If you don't know your rights how can you defend yourself????
    To make this perfectly clear,
    HERE IT IS IN BLACK AND WHITE
    OATH OF OFFICE contains the words::
    " I will support and defend the Constitution of the United States against all enemies, foreign and domestic…."
    This oath is REQUIRED by the US Constitution and PRESCRIBED BY LAW.
    All members of the house &/or Senate that support illegal aliens over U.S. Citizen's are in violation of their Oath of office and should therefore be REMOVED FROM OFFICE.
    IT'S REALLY THAT SIMPLE.
    VIOLATING YOUR OATH IS A FEDERAL CRIME.
    5 US 7311 & Exc. Order 10450
    Punishable By Removal From Office, Prison and Fine…Welcome to Gboard clipboard, any text you copy will be saved here.

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