Biden admin’s reaction to ticking US bank time bomb, ‘no cost to taxpayers’ uses economic theory known as ‘magic’
As SVB and Signature banks collapsed this week, the FDIC proclaimed it would make all depositors whole in what appears to be a bailout to prevent contagion while it also revealed that America is sitting on a $620 billion timebomb of unrealized losses in US banks.
The “unrealized losses” are assets that have dramatically decreased in value but haven’t been sold off yet. The warning comes from Federal Deposit Insurance Corporation (FDIC) Chair Martin Gruenberg according to the Daily Mail.
Just hours before the announcement that depositors would get all their money back, Treasury Secretary Janet Yellen had vowed there would be no bailout. The word games have commenced and the Biden administration is avoiding the term like the proverbial plague. They are also laughably claiming that no taxpayer money will be involved and that it will come from the FDIC.
“Any losses to the Deposit Insurance Fund to support uninsured depositors will be recovered by a special assessment on banks, as required by law,” a statement by the FDIC said. They added that “the Federal Reserve Board on Sunday announced it will make available additional funding to eligible depository institutions to help assure banks have the ability to meet the needs of all their depositors.”
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https://www.bizpacreview.com/2023/03/13/biden-admins-reaction-to-ticking-us-bank-time-bomb-no-cost-to-taxpayers-uses-economic-theory-known-as-magic-1340216/
