Biden’s Coming Banking Disaster

Democrats were in trouble from the moment they plotted to cheat Joe Biden into office.

Aside from the obvious–Biden’s brain damage–Democrats hoped their policies would be accepted hook, line, and sinker.

But now the particle board shows under the veneer. And just like when the particle board gets exposed to the elements, it begins to swell. In the case of Biden financial markets, the bubble created is about to burst.

As South Park joked about the 2008 Financial Crisis – Biden Edition:

Ironically, this episode was made during the Era of Obama. But as with all things Leftist, you can count on their failures to cycle.

Enter Stage Left, Silicon Valley Bank (SVB)–the FTX of banking? And the Daddy of this failure is The Big Guy, none other than Joe Biden.

SVB is that bank that financed many of the tech Gestapo companies who now persecute conservatives. And as with all things Leftist, SVB failed.

Understand that Democrats almost undoubtedly schemed to give a bank charter to this company. Crony capitalism established this bank. And then Leftists lined up to eat from the trough to become fatted pigs.

And when the Left elites placed the current stooge in the White House, their house of cards predictably came tumbling down.

As one periodical explained, SVB’s downward spiral began late Wednesday. The company surprised investors with news that it needed to raise $2.25 billion to shore up its balance sheet.

Interestingly, here is what SVB tweeted three days before its failure.

Even funnier to me is how one report described SVB:

On Wednesday, Silicon Valley Bank was a well-capitalized institution seeking to raise some funds.

Well capitalized? Sure. Like Enron, perhaps.

Within 48 hours, a panic by depositors and some say the venture capital community that SVB had served ended the bank’s 40-year-run.

I love how they trivialize $2.25 billion dollars needed to “shore up its balance sheet”. Just a bit of picket change between friends.

Let’s compare losses.

The Hill reported on Donald Trump’s financial woes when he ran for president.

President Trump had $287 million in debt forgiven within the past decade, with most of it related to his Trump International Hotel & Tower in Chicago, The New York Times reported on Tuesday.

The Times, citing federal income tax records that it obtained, reported that lenders forgave hundreds of millions in debt since 2010 that Trump did not repay, amounting to most of what Trump had owed.

So Trump wrote off $287 million over roughly ten years. How did this compare to the recent losses authorized by Democrats?

For starters, look at the $8B lost by FTX.

The collapse of the crypto exchange FTX seemed to materialize out of nowhere: Within one week in November, FTX transformed from one of the most respected and trusted parts of the crypto industry to a bankrupt disgrace that lost more than $8 billion of its customers’ money, according to authorities.

Silvergate Capital, a central lender to the crypto industry, said on Wednesday that it’s winding down operations and liquidating its bank. The stock plunged more than 36% in after-hours trading.

Silvergate has served as one of the two main banks for crypto companies, along with New York-based Signature Bank. Silvergate has just over $11 billion in assets, compared with over $114 billion at Signature. Bankrupt crypto exchange FTX was a major Silvergate customer.

And while we are on the subject of Silvergate. They lost almost $11B when they went tits up.

But let’s revisit SVB.

About $1 billion in losses remains on their balance sheet. But let’s not over look the fact that as startup clients withdrew deposits to keep their companies afloat, SVB got desperate. Short on capital, SVB was forced to sell all of its available-for-sale bonds at a $1.8 billion loss.

Any guesses who profited from this? All I can say is if you follow the money, you will find Leftist elitists at the end of that rainbow.

Now for the real story. What caused the problem?

According to one report,

The episode is the latest fallout from the Federal Reserve’s actions to stem inflation with its most aggressive rate hiking campaign in four decades. The ramifications could be far-reaching, with concerns that startups may be unable to pay employees in coming days, venture investors may struggle to raise funds, and an already-battered sector could face a deeper malaise.

The roots of SVB’s collapse stem from dislocations spurred by higher rates.

The people in the know about the failure caused a run on the bank. VCs instructed their portfolio companies to move funds, according to people with knowledge of the matter. They did this to protect the companies they funded.

Death blow.

All told, customers withdrew a staggering $42 billion of deposits by the end of Thursday, according to a California regulatory filing. By the end of that business day, SVB had a negative cash balance of $958 million.

What’s sad for America is things will get worse before they get better. This will be good for Conservative America, as this might be the straw that breaks the camel’s back. Even Democrats won’t be able to cheat themselves into office on the heels of this, J6, Wuflu, and the Biden cartel.

 

 

 

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