Having done no independent research of my own (what else is new?), here’s what I have to say about the Silicon Valley Bank debacle. This is just the first step in a more drawn-out process for the taxpayer, an easing in, if you will, to the underpinning logic of yet another massive bailout for the banks.
We have it plastered all over the news. “Oh, no. Look at how devastating a bank run can be. Oh, the humanity! [wink, wink].” What will follow is the idea of, and the eventual inevitably that thus must be, in another massive bailout. Because remember what you saw on the news? How horrible was it that people couldn’t get their money out of that one bank in Silicon Valley? If it can happen there, of all places, do we really want that happening to banks all over the country?
So, with that, I venture to suggest that there were certainly lessons learned from the Great Recession in ’08. Whether or not you agree with what they are, I’ll leave that up to you, dear reader. But know this. They won’t just jam it in this time. They’ll move at a slower pace, guiding you to what you believe is your own conclusion. “Sure, I disagreed with the bailouts last time, but this time it’s different!” The logic will be undeniable, and so too the staggering sums necessary.
Because see, this is a new phenomena, entirely different from the TARP funds afforded all those years ago. We won’t again be told how these institutions are “too big to fail,” whatever the hell that means. What we’ll have this go round is a well-documented and elucidated argument [through the example of the first bank to fall, SVB, and those to follow] for why this money is not only necessary, but will prevent the average person from suffering the same fate as did those other customers, the poor dears.
We’ll be hand-held the entire way, that example par excellence to fuel our own justifications for why this must happen, for why we can’t let that same fate befall our own local bank. We’ll have those smaller, but no less prudent financial guarantees along the way. In for a penny and all that. We’ll be convinced, catered to, and cajoled. We’ll be cooed and wooed. And what we’ll get this time, for lack of a worse phrase, is the first ever erotic massive bank bailout!
Either that, or I’m just brain-addled, way off base, and should just go fuck myself. You know, business as usual.
Source: OrangeLegalPad4_Isn’tTheFedPartOfTheFBI?