Bail Them All Out? With What?
This has been going on a long time. It just keeps getting bigger and bigger.
In the 1980s there was the Savings and Loan Crisis. The Crisis occurred at about 900 insolvent S&L banks. They had clearly mismatched assets and liabilities. The federal government set up the Resolution Trust Corporation (RTC). Overall, the amount of money spent on the bailout was $160 billion.
In 2008, the federal government bailed out Freddie Mac, Fannie Mae, the banking system, Airlines, AIG, Bear Stearns, and anything they found to be “too big to fail”. This was primarily due to the implosion of mortgage-backed securities. They had clearly mismatched assets and liabilities.
Between the Emergency Economic Stabilization Act (EESA) and the Troubled Asset Relief Program (TARP), over $700 Billion was spent.
Today, the federal government is backstopping $150 billion of uninsured deposits at one bank alone, Silicon Valley Bank. This bank has clearly mismatched assets and liabilities.
What else is there to say? As I have warned, this was always going to happen. It is the reason why I am running for President. And the crisis will only get bigger. There is no way to backup all of the uninsured deposits in the United States banking system.
When you combine this disaster with both the multi trillion-dollar deficits that have been run by the last two presidents and what President Biden expects the deficits to be over the next 10 years, the crisis coming now will be much worse than anything America has seen before.
Do you still want candidates that won't touch Social Security and/or were part of the $8 trillion of deficits run under President Trump?
I am a financial expert and have complete plans to move toward fiscal sanity. stevelaffey.com
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The day that we stop pretending that we have money that we don't have is the day that America begins its path back to full strength and security. Here's hoping that you are our next president to facilitate that!