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Lucas Kandia's avatar

Paraphrasing what Bill has espoused since I started reading him, governments, if they need to exist at all, should be as much "hands off" as possible. Meaning that they should not be interfering with day-to-day markets, trading, the exchange of goods, materials and service.

I would add to Bill's recommendations, that anyone who tries to run for a seat in government (like our clown of the day, Janet Yellen) or be a candidate for an appointed seat, should pass a basic competency test. One that involves knowing the history of their own country, having some form of accounting schooling like knowing the nuances of a P/L and Balance sheet and how they work together and finally understanding why each article of their own country's constitution was written the way it was, back when it was written. For major positions, like mayors, governors and presidents, I would even go one step further and require that the candidates have run a successful and honest (lol) business in their prior lives, scaling in size according to the position they were seeking.

This from CNN and Janet Yellen the other day:

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Calling the rapid collapse of Silicon Valley Bank a "new phenomenon," US Treasury Secretary Janet Yellen said the circumstances that led to it could very well happen again.

"The Silicon Valley Bank situation showed an overwhelmingly rapid run on a bank. We've never seen deposits flee at this rate," Yellen said Wednesday during a Senate hearing on Financial Services and General Government.

"Ma(n)y depositors were tech firms that work with venture capitalists that also bank. It's essentially shouting fire in a movie theater," she said.

"Now in the world that we live in, although this was a small community and a disproportionate share of Silicon Valley bank deposits, this kind of thing may more readily happen."

Yellen said SVB's plight could mean that stress tests on banks and some of the assumptions that go into modeling the pace at which deposits might flee banks might need to be "updated and rethought."

"This is a new phenomenon. We haven't seen this before."

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There have been numerous runs on American banks in it's history. Most notably would have been in 1980's and 1990's when hundreds of small savings and loans were wiped out because of exactly this "phenomenon." To have zero knowledge or understanding of this coming from someone with her position in the Federal Government, underlines what Bill has been saying all along.

Clowns are indeed running the circus.

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Craig Whitfield's avatar

So after the 2008 Shit Show the banking industry decides to recapitalize itself by raping savers and the productive class through interest rate repression. Now after 13+ years of interest rate repression we have Shit Show 2. So who's going to pay for the sequel? Ah, savers and the productive class says the apparatchiks. "Systemically Important" and 'Essential Worker' are terms cooked up by the apparatchiks to grant them the ability to arbitrarily screw whoever they please with no accountability.

What's even more disgusting is the Mindless, Statist, Government Apologist, Sheeple who willingly ingest this shit with a smile on their face. Heads they win tails you lose :-(

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