.@SecYellen has apparently pushed the SIBs to recycle some of the deposits they received from @firstrepublic back into FRB for 120 days. The result is that FRB default risk is now being spread to our largest banks.
Spreading the risk of financial contagion to achieve a false… t.co/rDwQophwly
— Bill Ackman (@BillAckman) March 17, 2023
BIDEN ECONOMY: Emergency Loans to US Banks Reach Highest Level Ever This Week – Smashing 2008 Record
The Biden economy has reached another record and another low.
This week, we saw the Biden gang bail out all depositors at Silicon Valley Bank (including the Chinese venture capitalists’ accounts) but not the bank itself. Today SVB went bankrupt.
We also saw the fall of Signature Bank. This bank was led by a Board that included Barney Frank from the tragic Dodd-Frank fame.
These two banks were the 2nd and 3rd largest bank failures in US history. But there is more. According to the Daily Mail:
Bank borrowing from the US Federal Reserve spiked to a record $153 billion this week, shattering the peak seen during the 2008 financial crisis as banks scramble for liquidity.
It was the largest amount of borrowing on record from the Fed’s discount window, which offers banks 90-day loans at the central bank’s policy rate, currently set at 4.75 percent after a year of steep increases.
The surge in borrowing followed the collapse of Silicon Valley Bank and Signature Bank last week, which prompted fears that a widening banking crisis could engulf small and mid-sized US banks.
These people are so bad they couldn’t be worse. They must want the economy to crash.