Democrats love the middle class damning relationships they’ve developed with vast swaths of corporate America.
But some events like the SVB bank collapse make it crystal clear what’s really going on.
And now Nancy Pelosi is in a fit of rage after these political projects go up in flames.
Bank runs and skyrocketing inflation have ensued after years of risky fiscal policy carried out by the Joe Biden administration.
Americans are concerned that the United States economy is speeding toward a major recession.
When it comes to the economic news, few events are as worrying as the bank runs sparked in Rep. Nancy Pelosi’s (D-CA) home state with Silicon Valley Bank.
Blue state banks are learning a difficult lesson in financial responsibility
Now the California based Silicon Valley Bank, New York’s Signature Bank has collapsed as well.
Long lines were seen outside of Silicon Valley and Signature banks this week even after establishment elites in both parties clambered and put together a bailout for all the well-heeled customers with deposits beyond the $250,000 FDIC backstop.
Which was evidently almost all of them in the case of both banks.
Now depositors elsewhere are growing more nervous.
These bank runs have many Americans scratching their heads wondering if this sort of collapse could impact them and why these failures happened.
The answer increasingly looks like the perfect combination of “woke” nonsense and federal interference.
Silicon Valley Bank for example agreed to a $52 million loan to fund so-called affordable housing projects, which are now in administrative limbo.
To make matters worse, the Federalist reported that Silicon Valley Bank pledged at least $74 million to Black Lives Matter and other related causes.
Yet when the Federal Reserve began to aggressively increase interest rates in 2022, Silicon Valley Bank failed to properly hedge the resulting interest rate risk, leaving a gaping hole on the bank’s balance sheet.
In a nutshell, Federal Reserve money printing, combined with “woke” political and corporate projects, and runaway fiscal policies from the Joe Biden administration created a perfect storm for economic ruin.
The biggest fear among Americans is whether these bank failures will impact their lives, even if they do not use an at risk bank.
Per Axios, many California winemakers and other large businesses did business with Silicon Valley Bank and Signature Bank, which could have major implications on America’s already troubled supply chains.
If this is just the beginning, both parties’s establishments will demand bigger bailouts, hurting the middle class even more
More likely than not, the collapse of Silicon Valley Bank and Signature Bank are just the beginning of an impending economic crisis.
The Federal Reserve, Congress and the White House played a dangerous game over the last decade, essentially kicking the can down the road.
But the easy money for the elites and shadow inflation taxes for everyone else can only last so long.
Stay tuned to Blue State Blues for any updates to this ongoing story.
