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  • Jim Costa

Jim’s Daily Rant. Two Problems With Collapsed Banks and Bail-Outs.

Problem #1: The Silvergate Capital collapse on March 8 and the Signature Bank yesterday have a common theme. They both are meant to service Crypto Currencies so they can enter and leave through US Dollars. They were both two bigger servicers of Cryptos.

Were they taken down to lock out cryptos as the Federal Government intends to introduce its own crypto?

Problem #2: We are told that about 8% of depositors in SVB were under the $250,000 FDIC insurance umbrella, leaving roughly 90% of depositors FDIC uninsured.

If we assume that those uninsured can be Bailed-in for either a short haircut or entirely, why isn’t that going to happen? Instead it is announced that the bank will be bailed-out entirely. Why?

Let’s begin by looking at the purpose of the that bank. It finances start-ups by lending venture capital. Start-ups are always a risky businesses bet to begin with. So let’s understand this, SVB did not rely on working stiff’s paychecks, no they took in Billion dollar depositors wishing to play the roulette table there.

If I was an Oprah wishing to bet a Billion dollars, I would have a financial advisor holding my hand. I would end up purchasing my own insurance policy as I am outside of FDIC insurance. But now I am in the big boy’s club with money so I have to act like a big boy.

I would insure the bank deposit with Lloyds of London or with a Manhattan Bank selling me a Credit Default Swap. So if Oprah gambled a $Billion naked, how is that the problem of working stiffs to bail her out; it was her choice.

It is hinted that the big depositors at SVB are Democrat programs, woke business start-up projects, and perhaps dirty money the likes of Hunter Biden. Is this why they are being bailed out?

One of my favorite authors, Robert Kiyosaki (Rich Dad, Poor Dad book series), said “There are two money problems. The first is too little money, the second is too much.” He says those with too much must fight like hell to protect it. If Oprah puts it all in one bank, uninsured, oh well. That is her decision.

Final Thought The 2008 Bank Bailout was feared to create a bigger problem by coaxing big banks to gamble even more knowing a guarantee of a bail-out was there for them. That appears to be exactly what happened again now and will continue to happen. How many global banks are the U. S. working stiffs going to be forced to insure?

Conclusion: The Bail-Out may not occur. It will drive the U. S. population into a frenzy. It will price them out through foreseeing hyperinflation and corruption. If the Bail-Out occurs, the price may be too high to the Deep State in the end.

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