Nationalized banks?

Quote of the Day

Joe Biden is spending the country into oblivion. He is bailing out wealthy depositors at these banks. Under Biden, our once-private banking industry has essentially been nationalized, too. With each year this man remains in office, a little bit more of America you and I knew will be chipped away. Eventually, we will look much like the European Union: a boon for crony capitalists and a nightmare for innovators.

Brandon Weichert
March 15, 2023
Joe Biden Might Have Just Destroyed America’s Banks

We live in interesting times. Prepare appropriately.


7 thoughts on “Nationalized banks?

  1. Joe Biden? Does what he’s told. I get that since he’s the point man, he should hang.
    But dropping Kamela in the chair going to change anything? I trow not.
    It’s the machine that put them there that is the real cancer.
    There is a whole machine that runs DC. I suspect the same ones that own the Federal reserve banking corporation. (aka. Federal Reserve. The one’s that loan our money to the government. And then collect both principal and interest from us. Nice scam! Considering it was all conjured from thin-air.)
    For a 100 years or better something very evil has been twisting this country into knots. And we keep pointing to those that are put out front TO BE seen as the big problem.
    They are. Be we should compel ourselves to remember their just puppets. And stand ready for the next scam.

  2. From what I’ve read this non-bailout bailout is basiclly QE5. The Fed et al are trying to walk the impossible razor’s edge between depression and inflation caused by their hubris since inception but that really ran amok in the last couple decades. All the malinvestment needs to be allowed to unwind so risks are real, but they refuse to face reality at every turn. When the house of cards finally comes down it’s going to be a calamity.

  3. Private gains, private investor losses, nationalized risks for depositors.

    So, here’s what that means: nobody will invest in banks.

    The risks for the banks has been minimized so risky or blatantly unsound investment strategies are now accompanied by minimal consequences. Have you heard the political rhetoric? “If we bail out SVB, we can’t turn around and say we won’t also bail out all the other banks, too.”

    When (not if) the investments crater, the depositors are OK (at taxpayer expense) while the investors get nothing. So investing in a bank is is all risk, low chance of reward.

    For depositors, what does this mean? Well, the banks can still invest themselves, and their profits in this regard both operate the bank and support the CDs and interest paid on savings accounts. But because the discipline of risk has evaporated, there will be less net between gains and losses, so the dosh available to support savings account interest will be reduced… probably to stay static as it is despite the higher Fed interest rates.

    FDIC insurance should have covered only what was in the law and the contract, a quarter mil per account. That said, there are two things that should have happened before this: 1) That quarter mil should have been adjusted by inflation, along with the insurance premium paid by the banks 2) there should be additional insurance coverage optionally available to accounts with more than a quarter mil (adjusted or not) with the cost of the additional premium directly passed to the account holder. When that law was passed, a quarter mil was a pretty good sized house in the city. Now it’s the down payment for a modest house in the suburbs. So, some adaptation to current reality is appropriate, but since that hasn’t happened stick to the original deal.

    Obviously, what should happen, legally, constitutionally, prudently, financially, appropriately… is not in the interests of the people that think they rule us. The bailouts should be illegal just like the student loan forgiveness is illegal as allocations of public funds unsupported by legal appropriation. If we had a functioning rule of law, every cent used in this matter would be recoverable from the individuals involved in misappropriating it.

    • Ya, we always get lost in losses. But that’s not what happens to money. It doesn’t get lost. It just moves from one pocket to someone else’s.
      Which was the plan all along. I can’t imagine transgender stupid running a bank for anything other purpose, can you?
      Inflation/deflation is the game that robs us all for the sake of a very few. And it needs to end.

  4. Remember when only the big companies could stay open and deal with all the covid lockdown insanity, and lots of small businesses closed their doors forever? Massive consolidation and job destruction. Now they are saying they’ll bail out the “too big to fail” banks, but the little guys don’t pose a systemic risk, so they are on their own. What’s happening? People are pulling their money from the little banks, and moving it to the big banks to make sure “it’s safe.” Pushing fear, getting consolidation in the big political donors…. who ever could have seen that playbook being used? Consolidation is about centralizing control among fewer and more compromised or “fellow traveler” players.

    And people are falling for it one…. more.. time….

    • The old User Friendly comic strip (RIP) ran one … oh, probably 15-20 years back, during the first set of “too big to fail” bank bailouts. [Edit: I checked, it was 2008.] The subject was that government was bailing out the big banks but not doing anything to help out the smaller ones.

      The “joke” was that if there are some that are “too big to be allowed to fail”, it stands to reason that others are “too small to be allowed to succeed”.

      Life imitates art … and while history doesn’t repeat, it certainly rhymes.

  5. Biden isn’t doing jack shiite other than crapping his pants and lusting after pudding pops and 8 year old kids. The people busily destroying the country were NOT elected, are NOT politically accountable and with rare exception ANONYMOUS.
    We could execute Pedo Joe, Heels up Harris and EVERY Congress critter in office tomorrow and NOTHING WOULD CHANGE.

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