Banking Bloodbath: Contagion Fears Mount


I predicted we would have some challenging times ahead. What we saw at Silicon Valley bank is just the beginning. We get a lot of challenges here and while the feds did step in to handle this situation. How many more times can they do it? And you have to ask yourself, is this sort of the bear Stearns moment before Lehman? Could we actually see the entire system come down? I certainly hope not. And Biden certainly hopes not, but this has happened under his watch. He tried to come things down, take a listen. I want to briefly speak about what's happening to Silicon Valley bank and signature bank. Today, thanks for the quick action of my administration over the past few days. America's going to have confidence that the banking system is safe. Your deposits will be there when you need them. Small businesses across the country, the deposit accounts that these banks can breathe easier, knowing they'll be able to pay their workers and pay their bills. Okay, so that's the good news. Yes, everybody's deposits at all the banks thanks to this window that the fed opened up on Sunday Night where banks could borrow money from the government if needed, well, everybody's deposits are going to be safe. But that doesn't change the reality that all of these regional banks any bank with less than $250 billion in deposits is not subject to the same kind of regulatory environment as the big guy. You know, the JPMorgan Chase is Wells Fargo's bank of Americas of the world. And as such, anyone who has money and then the one of these smaller banks may be looking to diversify the heck out of there.

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