(BrightPress.org) – President Joe Biden has now presided over 3 out of 4 of the worst banking collapses in history. On May 1st the FDIC said that it would be collaborating with JP Morgan Chase to bail out and merge the mega-firm with failing First Republic Bank, taking over its assets. JP Morgan will put up $10.6 billion while the FDIC Insurance Fund is paying out $13 billion.
This latest banking fiasco follows hot on the heels of two other major banks going under, Silicon Valley Bank and Signature Bank both suffered collapses in the last few weeks costing around $23 billion to cover their deposits from the FDIC fund.
Stephen Moore is a senior economist at FreedomWorks, he told Fox News Digital that many of these banks are holding U.S. Treasury Bonds, which have significantly plummeted in value due to the spike in inflation. Moore estimates they’ve lost at least 30% of their value, which is decimating the balance sheets for these banks. He attributes the printing and wild spending to the economic impact of lockdown policies and COVID-related panic.
Thomas Hogan is an expert in finance with the American Institute for Economic Research, he pointed out in an interview that larger banks would normally be purchasing smaller ones given the economic conditions. Instead, citing First Republic as an example, they’re waiting for them to fail and for the government to incentivize the purchase with bailout packages.
He outlined other regional banks that are in similar dire straits: PacWest Bancorp, First Horizon Bank, and Western Alliance all had drops in their stock prices on Thursday, May 4th. The failures are largely being blamed on the Fed hiking interest rates over the last year to combat inflation. Someone should have told them that they could avoid inflation by printing less money.
In March 2021, the Biden-approved “American Rescue Plan” cost taxpayers $1.9 trillion, most of which was printed into existence. The plan was criticized as unnecessary given that the disease had largely abated by that time and multiple treatments were available. Inflation has been on a rampage since, as many folks at the time warned it would. Despite assurances that the banking system is stable, will we see more banks fail in the coming months?
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