Opinion
Now that all banks are ‘too big to fail,’ disaster awaits
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The biggest lesson from the financial sector in recent days? The alleged “fixes” put in place after the 2008 meltdown didn’t do squat — and the feds are now poised to bail out everyone.
The Biden administration rescued the depositors of Silicon Valley and Signature Bank holding more than the FDIC-insured max of $250,000, who’d otherwise have seen their accounts above that level frozen before facing an eventual “haircut” of 15% or so.
And now any bank under pressure for cash to meet depositor obligations can borrow from the Federal Reserve against the full face value of its Treasury bonds, as opposed to their market value (crushed by Fed rate hikes necessitated by Bidenflation).
Continue reading at the New York Post.