Former deputy Treasury secretary, Roger Altman, admits: With SVB, the Biden Administration “effectively nationalize[d] … the deposit base of the U.S. financial system … Technically speaking, they haven’t [nationalized the banking system], but in a broad sense, they are verging on that.”
In one day, this puts the American taxpayer in a very different place. It means all of us are on the hook for whatever any reckless banker decides to do. It completely changes the relationship between the government and the people. We are one quick step from nationalizing the financial system into one Central Bank. After that, we have digital money on the horizon. That translates into no privacy and no freedom.
The host asked Mr. Altman if this was a bailout. It’s not. It’s much worse. He explained that the administration doesn’t want to go near the term bailout since they think it led to the 2010 tea party and the MAGA movement.
“Therefore, administration today doesn’t want to get within 100 miles of that term bailout now. Uh, what the authorities did over the weekend was absolutely profound. They guaranteed deposits for all of them [all banks]… what that really means, and they won’t say this, and I’ll come back to that, what that really means is that they have guaranteed the entire deposit base of the US financial system. The entire deposit base. Why? Because you can’t guarantee all the deposits in Silicon Valley bank and then the next day say to depositors, say, at First Republic, sorry yours aren’t guaranteed…
“So, this is a breathtaking step, which effectively nationalizes or federalizes the deposit base of the US financial system. Now you can call it a bailout, you can call it something else, but it’s really absolutely profound now the authorities, including the White House, are not going to say that because what I just said, of course, implies that they’ve just nationalized the banking system and technically speaking they haven’t: but in a broad sense they’re verging on that.
“By the way, the shareholders in Silicon Valley bank obviously lost all their money, and therefore, if you’re a shareholder at First Republic or some of the other banks that showed on your screen a few minutes ago, you’re concerned because you saw that in Silicon Valley bank the shareholders were wiped out. But the depositors at those institutions have nothing to worry about because they’ve just been guaranteed.
Former deputy Treasury secretary, Roger Altman, admits: With SVB, Biden Admin “effectively nationalize[d] … the deposit base of the U.S. financial system … Technically speaking, they haven’t [nationalized the banking system], but in a broad sense, they are verging on that.” pic.twitter.com/SBn9SfY3Xm
— Tom Elliott (@tomselliott) March 14, 2023