Commentary
The Federal Reserve creates booms and busts that make banks richer and leave citizens holding the bag.
In March 2023, the U.S. Treasury approved the provision of at least $300 billion worth of loans to Silicon Valley Bank (SVB) and other banks. Treasury Secretary Janet Yellen assured the public that this was not a bailout and that no taxpayer money would be used. This is stretching the truth, however, as the Treasury’s money comes from taxpayers.
In 2008, when Wall Street received $700 billion of taxpayer money, they were at least honest enough to call it a bailout. And while the direct payments are coming from the Federal Deposit Insurance Corporation (FDIC) and the Treasury, the unsustainable economic situation that creates the need for bailouts is caused by the Federal Reserve and its control over interest rates….