Almost immediately after Silicon Valley Bank (SVB) failed, the Biden administration rushed in to clean up a mess that the president’s inflationary spending and the Federal Reserve’s aggressive interest rate changes created in the first place.
SVB spent years of spending loads of tech cash on buying up long-term debt, but the bank’s poor investment strategies weren’t the only reason the West Coast bank was unable to cover deposits for “nearly half of the nation’s venture capital-backed technology and life-science companies.”
It was Biden’s decision to repeatedly greenlight floods of cash into the U.S. at the beginning of his White House tenure that eventually pushed the Federal Reserve to drastically hike interest rates from where they had hovered near zero in 2020. Those suddenly high-interest rates meant SVB’s long-term bond investments, which soared during lockdowns in 2020, were suddenly suffering great losses that would lead to the collapse of the bank.
As a result, the Federal Deposit Insurance Corporation took over the financial institution on Friday and guaranteed billions of dollars worth of SVB and the connected New York-based Signature Bank deposits, even the large percentage of accounts exceeding the previously established $250,000 limit.
Biden and his administration are adamant that what they are doing for SVB is not a bailout that will burden taxpayers, but that’s a claim Republicans reject.
It’s also a claim that falls on deaf ears of normal Americans who, despite years of struggling under crises inflicted by Biden, have yet to get
