Posted on 03/30/2023 9:52:12 AM PDT by JV3MRC
It’s obvious things have gotten bad when President Joe Biden’s talking points are being undercut by one of his most ardent lapdog economists.
Biden took to the press podium March 13 to congratulate himself on his administration’s wild efforts to secure the deposits at Silicon Valley Bank following its historic collapse. Biden attempted to dismiss any notion that what he was pushing was a government bailout. “No losses will be — and this is an important point — no losses will be borne by the taxpayers. Let me repeat that. No losses will be borne by the taxpayers,” Biden claimed. Not so fast, said New York Times economics columnist Paul Krugman, aka Mr. “Transitory” inflation. “[Y]es, they were bailouts,” Krugman rebutted. “I wish the Biden administration weren’t trying to claim otherwise.”
(Excerpt) Read more at newsbusters.org ...
Is Krugman the guy who holds the record for predicting 25 of the last 5 recessions?
Krugman is always wrong about everything. So I don’t know what to think. [/jk]
He’s the dwarf guy who rides the subway at night, naked under a trenchcoat, doing Sudoku Puzzles.
So Krugman is straying off the reservation a bit. He needs an attitude adjustment, that’s for sure.
Perhaps a raid on Krugman’s house by the FBI or IRS will do the trick.
Any amount that are above the FDIC limit of $250,000 IS A BAILOUT FOR THE WEALTHY.
The cost will be borne by every bank depositor in every bank in the country, which is to say every worker (and non-worker) who has any sort of bank account. FDIC is funded by assessments on banks. The banks will of course pass this cost along to the consumer, because they must, or go bankrupt themselves.
Blind Squirrel. Nut. ‘Nuf said.
The bailout is that no bank will be allowed to fail.
That bails out the bank’s shareholders and executives.
Focusing on the depositors misses the point of the bailout.
(Most deposits over $250K are not wealthy individuals, btw. They are predominantly working capital of all sizes of businesses.)
Why would they raid one of their own resources?
When Person 1 (who has never been right about anything), discredits Person 2 (who has never been right about anything), is he still wrong about everything?
Remember, bailouts mean government printing the money they give out, which means inflation, which is equivalent to increasing our taxes.
An idiot talking about another idiot.
Biden has some wiggle room. He can just roll the cost of the bail out into the current debt and therefore not pay for it now using taxes.
In that case they were not bailouts.
But in reality, they were bailouts because the government stepped in to insure deposits that by statute and precedent were not insured. Had SVB been liquidated even non-insured depositors would have gotten 90% of their money, but to me that should have been what happened.
Thanks for the input, Paul, but we kinda noticed.
He’s the guy who said that Trump’s election would crash the economy and that it would “never recover.”
“Had SVB been liquidated even non-insured depositors would have gotten 90% of their money”
Why’s that? I’m just poorly informed.
You say the government ‘insured’. Is the government actually paying? If so then it is truly a bailout as you say.
Regarding the concept of ‘money printing’, doesn’t the government actually loan the money, so it would eventually be paid back thus contracting the money supply back to what it was?
He’s the guy who says our economy would be better if done like China’s.
The FDIC (that is the government) insures all bank deposits up to $250,000.
Now the Federal Reserve has opened its “window” to all banks when they run out of cash—so all depositors are “protected”.
We can debate what the Federal Reserve is—but the Chairman is appointed by the US President so it is at least partially “government”.
The FDIC piece is financed by fees on banks—so while that is technically not a “tax” it is passed on to consumers as increased costs one way or the other.
The Federal Reserve window withdrawals increases inflation—which is a hidden tax on everyone.
The bottom line is that we are looking at a bailout—of the wealthy bank shareholders and executives—by average citizens.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.