1 00:00:01,440 --> 00:00:06,160 Speaker 1: So we're getting word that another bank has collapsed. Signature 2 00:00:06,240 --> 00:00:10,280 Speaker 1: Bank has been shut down in connection with Silicon Valley 3 00:00:10,280 --> 00:00:14,960 Speaker 1: Bank collapse. This bank, Signature Bank, was founded in two 4 00:00:14,960 --> 00:00:17,200 Speaker 1: thousand and one. It is a New York based bank, 5 00:00:17,280 --> 00:00:21,599 Speaker 1: not a Silicon Valley Bank based bank. It was popular, 6 00:00:21,680 --> 00:00:26,120 Speaker 1: we're now being told among crypto companies. Federal regulators on 7 00:00:26,280 --> 00:00:29,360 Speaker 1: Sunday said that the New York based Signature Bank was 8 00:00:29,400 --> 00:00:33,360 Speaker 1: being shut down to protect customers and the financial system 9 00:00:33,360 --> 00:00:37,120 Speaker 1: following the collapse of California's Silicon Valley Bank. The announcement 10 00:00:37,159 --> 00:00:39,760 Speaker 1: came in a joint statement from the US Treasury Department, 11 00:00:39,800 --> 00:00:42,680 Speaker 1: the Federal Reserve, and the Federal Deposit Insurance Corporation known 12 00:00:42,680 --> 00:00:47,680 Speaker 1: as FDIC. The regulators said that SVB clients will have 13 00:00:47,800 --> 00:00:50,479 Speaker 1: access to their money starting Monday and no expense the 14 00:00:50,479 --> 00:00:52,960 Speaker 1: American taxpayer. They're lying to you. I don't believe them 15 00:00:52,960 --> 00:00:56,600 Speaker 1: at all. A similar program, they said, will be enacted 16 00:00:56,600 --> 00:01:00,560 Speaker 1: for Signature Bank, which was closed Sunday, but by its 17 00:01:00,600 --> 00:01:05,320 Speaker 1: state chartering authority quote all depositors of this institution will 18 00:01:05,360 --> 00:01:08,200 Speaker 1: be made whole. The joint statement reads, as with the 19 00:01:08,240 --> 00:01:11,480 Speaker 1: resolution of Silicon Valley Bank, no losses will be borne 20 00:01:11,640 --> 00:01:15,560 Speaker 1: by the taxpayer. Spokesman for Signature Bank is declined to 21 00:01:15,640 --> 00:01:18,680 Speaker 1: comment now. This bank, founded in two thousand and one. 22 00:01:18,720 --> 00:01:21,959 Speaker 1: The New York based Signature Bank was popular among crypto companies. 23 00:01:21,959 --> 00:01:26,839 Speaker 1: The institution provided deposit services for its clients digital assets, 24 00:01:26,840 --> 00:01:32,040 Speaker 1: but did not make loans collaterized claralyzed by them. Leading 25 00:01:32,080 --> 00:01:34,560 Speaker 1: up to the SVP collapse, the banks that it had 26 00:01:34,560 --> 00:01:37,560 Speaker 1: been trying to reduce these deposits. As recently as Thursday, 27 00:01:38,280 --> 00:01:42,240 Speaker 1: Signature said it was in a well diversified financial position 28 00:01:42,360 --> 00:01:46,280 Speaker 1: they were lying and had limited digital assets related deposit 29 00:01:46,520 --> 00:01:50,080 Speaker 1: balances in the wake of the industry developments, quote unquote, 30 00:01:50,880 --> 00:01:53,080 Speaker 1: we want to make it clear again that Signature Bank 31 00:01:53,280 --> 00:01:56,800 Speaker 1: is a well diversified, full service commercial bank with more 32 00:01:56,800 --> 00:01:59,600 Speaker 1: than two decades of history and solid performance serving middle 33 00:01:59,680 --> 00:02:04,360 Speaker 1: mark It's businesses. That's the Signature Bank co founder in 34 00:02:04,440 --> 00:02:08,760 Speaker 1: chief executive officers set in a statement saying, quote, we 35 00:02:08,840 --> 00:02:12,440 Speaker 1: have built a strong reputation serving commercial clients through nine 36 00:02:12,840 --> 00:02:16,440 Speaker 1: business lines and reached an excess of one hundred billion 37 00:02:16,440 --> 00:02:20,560 Speaker 1: in assets by continually executing our single point of contact 38 00:02:21,000 --> 00:02:24,600 Speaker 1: relationship based model, where banking teams are capable of meeting 39 00:02:24,639 --> 00:02:29,440 Speaker 1: all client needs. Signature bank was notable for having former 40 00:02:29,480 --> 00:02:33,880 Speaker 1: Democratic Congressman Barney Frank on its board. Frank signature Dodd 41 00:02:33,919 --> 00:02:35,720 Speaker 1: Frank at Craft in the wake of the O eight 42 00:02:35,760 --> 00:02:39,640 Speaker 1: financial crash, sought to improve accountability and transparency in the 43 00:02:39,720 --> 00:02:43,720 Speaker 1: financial system, and that former Democratic Congressman Barney Frank was 44 00:02:43,720 --> 00:02:45,480 Speaker 1: on the board of a bank. Now that's been taken 45 00:02:45,480 --> 00:02:48,600 Speaker 1: over by the government. Under the law, banks with assets 46 00:02:48,720 --> 00:02:51,840 Speaker 1: in excess of fifty billion were deemed as being potentially 47 00:02:51,880 --> 00:02:54,640 Speaker 1: too big to fail, and we're therefore subject to a 48 00:02:54,639 --> 00:02:58,840 Speaker 1: host of rigorous testing and regulations. Twenty eighteen, President Trump 49 00:02:58,840 --> 00:03:02,280 Speaker 1: signed the Economic Growth Regatory Relief and Consumer Protection APT 50 00:03:03,080 --> 00:03:07,080 Speaker 1: with rollback key regulations in the Woke Dot Frank Bill. 51 00:03:08,440 --> 00:03:12,239 Speaker 1: So now you have another bank that has gone under. 52 00:03:13,200 --> 00:03:17,320 Speaker 1: Coin Base just so you know, coin base is where 53 00:03:17,360 --> 00:03:22,480 Speaker 1: most people actually trade cryptocurrency. Coinbase says it has about 54 00:03:22,480 --> 00:03:25,639 Speaker 1: two hundred and forty million in cash balance with signature 55 00:03:25,680 --> 00:03:29,480 Speaker 1: bank Coinbase Global about two hundred and forty million in 56 00:03:29,480 --> 00:03:33,320 Speaker 1: corporate cast balance. The US Crypto Exchange sign tweet on Sunday, 57 00:03:33,320 --> 00:03:36,680 Speaker 1: hours after state regulators closed the New York base lender 58 00:03:37,400 --> 00:03:41,800 Speaker 1: due to FDIC holds on signatures transactions. We're currently facilitating 59 00:03:41,840 --> 00:03:46,320 Speaker 1: all client cast transactions with other banking partners. The tweet added. 60 00:03:46,680 --> 00:03:49,920 Speaker 1: The closure comes just two days after California authorities shuttered 61 00:03:49,920 --> 00:03:53,480 Speaker 1: Silicon Valley Bank and a collapse that royaled the global 62 00:03:53,520 --> 00:03:56,200 Speaker 1: markets and left billions of dollars of deposits belonging to 63 00:03:56,240 --> 00:03:59,920 Speaker 1: companies and investors stranded. The US Treasury Department other bank 64 00:04:00,040 --> 00:04:02,960 Speaker 1: regular set in a joint statement that all depositors at 65 00:04:03,040 --> 00:04:07,120 Speaker 1: Signature Bank will be made whole and no losses will 66 00:04:07,160 --> 00:04:11,440 Speaker 1: be borne by the taxpayers. The Signature failure is the 67 00:04:11,480 --> 00:04:15,960 Speaker 1: third largest in US history. So you have the second 68 00:04:16,080 --> 00:04:20,400 Speaker 1: largest failure in bank in banking history just a couple 69 00:04:20,440 --> 00:04:22,920 Speaker 1: of days ago, and then a couple of days later 70 00:04:22,920 --> 00:04:26,000 Speaker 1: you have the third largest. So the top two of 71 00:04:26,040 --> 00:04:29,200 Speaker 1: the top three biggest failures in the banking sector have 72 00:04:29,279 --> 00:04:32,000 Speaker 1: happened in the last forty eight to seventy two hours. 73 00:04:33,080 --> 00:04:35,920 Speaker 1: Let that sink in real quick. So let's go back 74 00:04:35,960 --> 00:04:39,560 Speaker 1: to where we are with the banking crisis. How is 75 00:04:39,600 --> 00:04:43,039 Speaker 1: CNN covering it? Listen to this. Breney Governor Gavin Newsom 76 00:04:43,080 --> 00:04:45,039 Speaker 1: says he is in touch with the highest levels of 77 00:04:45,120 --> 00:04:48,000 Speaker 1: leadership at the White House and the Treasury Department to 78 00:04:48,120 --> 00:04:51,040 Speaker 1: stabilize the situation as quickly as possible. In joining us 79 00:04:51,040 --> 00:04:54,760 Speaker 1: now is the host of CNN's Nightcap, John Starlin. A. John, 80 00:04:55,320 --> 00:04:58,680 Speaker 1: you know, a lot of experts are worried about this. 81 00:04:59,200 --> 00:05:01,480 Speaker 1: But first of all, what does this mean for SVB 82 00:05:02,160 --> 00:05:04,360 Speaker 1: and the startups that relied on it? There? I mean 83 00:05:04,360 --> 00:05:07,279 Speaker 1: there's some big companies but also small companies that relied 84 00:05:07,320 --> 00:05:10,400 Speaker 1: on this bag. There are I mean right now, it 85 00:05:10,440 --> 00:05:14,119 Speaker 1: means panic and confusion. There are companies in Silicon Valley 86 00:05:14,320 --> 00:05:17,040 Speaker 1: that are scrambling to make payroll. The money that they 87 00:05:17,040 --> 00:05:20,160 Speaker 1: had locked up in SVB is now inaccessible, and so 88 00:05:20,240 --> 00:05:22,960 Speaker 1: what that means is they are one relying on the 89 00:05:23,040 --> 00:05:27,560 Speaker 1: FDC to make those funds available quickly, and you know 90 00:05:27,720 --> 00:05:30,640 Speaker 1: it's unclear exactly what percentage of those funds will be 91 00:05:30,640 --> 00:05:33,240 Speaker 1: available and when. On the flip side, you know, those 92 00:05:33,240 --> 00:05:36,200 Speaker 1: companies are looking at loans and there are reports that 93 00:05:36,240 --> 00:05:39,680 Speaker 1: there are venture capital companies looking to buy up the 94 00:05:40,040 --> 00:05:42,560 Speaker 1: accounts for kind of pennies on the dollars. So what 95 00:05:42,600 --> 00:05:44,440 Speaker 1: does it mean for the companies It means confusion. But 96 00:05:44,520 --> 00:05:47,080 Speaker 1: for the workers who are looking for their paycheck this week, 97 00:05:47,240 --> 00:05:50,919 Speaker 1: it can mean devastation. We haven't seen layoffs yet, but 98 00:05:50,960 --> 00:05:53,520 Speaker 1: if these companies aren't able to get access to funds, 99 00:05:53,560 --> 00:05:56,440 Speaker 1: that is definitely a possibility. And I hate to be 100 00:05:56,960 --> 00:05:58,520 Speaker 1: a pessimist in all of this, but it's a fair 101 00:05:58,600 --> 00:06:02,400 Speaker 1: question to ask, what is the next possible domino to fault? 102 00:06:02,440 --> 00:06:05,599 Speaker 1: Will there be another domino? I mean, that is the question, 103 00:06:05,720 --> 00:06:08,200 Speaker 1: right what is the contagion of this? And the truth 104 00:06:08,200 --> 00:06:10,520 Speaker 1: is we don't really know. All eyes right now are 105 00:06:10,920 --> 00:06:14,720 Speaker 1: on a lot of regional banks similar to SVB. One 106 00:06:14,760 --> 00:06:17,440 Speaker 1: bank that's on people's radar is First Republic Bank, a 107 00:06:17,480 --> 00:06:22,000 Speaker 1: bank who shares dropped more than fifty percent before being halted. Eventually, 108 00:06:22,040 --> 00:06:24,880 Speaker 1: this doc rally, but it's down around thirty six percent 109 00:06:25,040 --> 00:06:29,080 Speaker 1: for the week. First Republic says that their liquidity position 110 00:06:29,160 --> 00:06:32,320 Speaker 1: remains strong, but come Monday, we'll see if investors and 111 00:06:32,400 --> 00:06:34,880 Speaker 1: more importantly, the people who have their money in First 112 00:06:34,880 --> 00:06:39,560 Speaker 1: Republic believe that. And finally, Bloomberg reported that billionaire in 113 00:06:39,600 --> 00:06:43,960 Speaker 1: ventury capitalist Peter Teal had his companies pull their funds 114 00:06:44,000 --> 00:06:47,960 Speaker 1: from SVB this week. Do we know what kind of 115 00:06:48,040 --> 00:06:51,440 Speaker 1: role that played in all this? Well, Peter Teal is 116 00:06:51,520 --> 00:06:54,800 Speaker 1: an incredibly influential figure in Silicon Valley, and right now 117 00:06:54,960 --> 00:06:57,039 Speaker 1: there's a lot of finger pointing going on about what 118 00:06:57,279 --> 00:07:01,360 Speaker 1: caused this bank run on speed be Peter Teal is 119 00:07:01,400 --> 00:07:04,280 Speaker 1: reported by Bloomberg and his Founders Fund pulled their money 120 00:07:04,279 --> 00:07:06,960 Speaker 1: out by Thursday and encouraged his companies to pull their 121 00:07:06,960 --> 00:07:09,440 Speaker 1: money out as well. Well. Word spreads quickly in the valley. 122 00:07:09,520 --> 00:07:12,600 Speaker 1: Right you have group chats, you have slacks. People are talking, 123 00:07:12,680 --> 00:07:15,880 Speaker 1: and we saw tens of billions of dollars of money 124 00:07:16,120 --> 00:07:19,640 Speaker 1: being withdrawn from SVP, which basically was a kiss of 125 00:07:19,680 --> 00:07:22,240 Speaker 1: death and caused California regulators to shut it down. You 126 00:07:22,280 --> 00:07:26,120 Speaker 1: might remember that Peter Teal was a big proponent of crypto. 127 00:07:26,320 --> 00:07:29,640 Speaker 1: He was very, very bullish on bitcoin. He attacked the 128 00:07:29,680 --> 00:07:35,120 Speaker 1: critics of bitcoin as enemies. Meanwhile, Peter Teele in his 129 00:07:35,160 --> 00:07:38,360 Speaker 1: Founders Fund sold their crypto and made billions of dollars 130 00:07:38,360 --> 00:07:40,560 Speaker 1: in the profits. So people in the valley know that 131 00:07:40,600 --> 00:07:43,840 Speaker 1: Peter Teal is very skilled at moving his billions of 132 00:07:43,880 --> 00:07:47,720 Speaker 1: dollars to safe harbor when there's volatility in the markets. 133 00:07:48,080 --> 00:07:50,840 Speaker 1: I love this. There may be some volatility to count. 134 00:07:50,960 --> 00:07:55,280 Speaker 1: Thank you CNN for that brilliant account. You know you 135 00:07:55,320 --> 00:07:58,920 Speaker 1: know reporting there you have two of the three biggest 136 00:07:58,960 --> 00:08:02,880 Speaker 1: banks in this country, they're defaulted that have been shut down. 137 00:08:03,880 --> 00:08:06,240 Speaker 1: Two of the three biggest in history have happened the 138 00:08:06,320 --> 00:08:09,880 Speaker 1: last what twenty four forty eight hours? Seventy two hours? This, 139 00:08:10,240 --> 00:08:14,880 Speaker 1: I mean, come on, really, like, this is what has 140 00:08:14,880 --> 00:08:17,400 Speaker 1: happened here, like for real, And you're sitting there going, 141 00:08:17,440 --> 00:08:20,160 Speaker 1: oh there, maybe it's some more volatility. No, you think 142 00:08:21,440 --> 00:08:25,440 Speaker 1: could there be a chance. Yeah, Now I'm worried that 143 00:08:25,480 --> 00:08:29,280 Speaker 1: the bailout's coming. They keep saying no taxpayer dollars going 144 00:08:29,320 --> 00:08:32,000 Speaker 1: to cost you nothing. I don't believe them. I think 145 00:08:32,000 --> 00:08:35,000 Speaker 1: you're gonna end up seeing some bailouts. The question is, 146 00:08:35,040 --> 00:08:39,600 Speaker 1: are you in favor of bailing these companies out? We've 147 00:08:39,600 --> 00:08:42,280 Speaker 1: been lied to. We now know these bank bailouts are 148 00:08:42,360 --> 00:08:45,680 Speaker 1: going to be a really big problem. We know now 149 00:08:45,720 --> 00:08:49,400 Speaker 1: that they are going to be a gonna probably cost 150 00:08:49,480 --> 00:08:52,200 Speaker 1: us a have a lot of money. They're saying, no, no no, no, no, 151 00:08:52,240 --> 00:08:54,120 Speaker 1: bailouts are gonna happen. They're gonna cost you money. I 152 00:08:54,160 --> 00:08:55,760 Speaker 1: don't believe them for a second. I think they are 153 00:08:55,760 --> 00:08:57,400 Speaker 1: absolutely gonna cost us a bunch of money. And I 154 00:08:57,440 --> 00:08:59,960 Speaker 1: think they're lying to us. We have a second bank 155 00:09:00,080 --> 00:09:02,040 Speaker 1: that has failed. After the first bank that failed, they 156 00:09:02,040 --> 00:09:04,360 Speaker 1: said was not a big deal as isolated event. Now 157 00:09:04,360 --> 00:09:07,000 Speaker 1: it's not an isolated event. In fact, we have the 158 00:09:07,280 --> 00:09:11,000 Speaker 1: second and third largest bank failures in US history. Have 159 00:09:11,120 --> 00:09:15,440 Speaker 1: happened just over the last several days. And they're like, 160 00:09:15,480 --> 00:09:17,280 Speaker 1: oh no, it's gonna be fine. We got we gotta 161 00:09:17,320 --> 00:09:19,440 Speaker 1: plan here. It's not gonna be a bailout, right, not like, 162 00:09:19,480 --> 00:09:21,160 Speaker 1: oh hey, we're gonna just you know, it won't be 163 00:09:21,240 --> 00:09:24,800 Speaker 1: like that. Everybody, relax, gonna be fine. I'm telling you, 164 00:09:24,880 --> 00:09:26,880 Speaker 1: they're gonna end up having to bailout. It's gonna end 165 00:09:26,920 --> 00:09:30,080 Speaker 1: up costing you something. Signature Bank has been shut down 166 00:09:30,120 --> 00:09:33,280 Speaker 1: in connection with the Silicon Valley collapse. This bank was 167 00:09:33,320 --> 00:09:35,080 Speaker 1: found in two thousand and one. The New York based 168 00:09:35,080 --> 00:09:39,320 Speaker 1: Signature Bank was popular among crypto companies, and it is 169 00:09:39,360 --> 00:09:42,480 Speaker 1: going to be shut down. Coin Base add two hundred 170 00:09:42,480 --> 00:09:45,640 Speaker 1: and forty million in cash balance with Signature Bank. That 171 00:09:45,720 --> 00:09:50,240 Speaker 1: bank now has been shut down. Coin Base two hundred 172 00:09:50,240 --> 00:09:53,319 Speaker 1: and forty million in cash with Signature Bank. They're saying 173 00:09:53,360 --> 00:09:56,960 Speaker 1: that they're going to figure this out. Coinbase Bank is down, 174 00:09:57,480 --> 00:10:00,680 Speaker 1: coin Base is down eight percent. Signature Bank at this point, 175 00:10:00,679 --> 00:10:02,640 Speaker 1: and they'll be halted. I'm sure it was down twenty 176 00:10:02,640 --> 00:10:05,560 Speaker 1: two point eight seven percent, down to seventy dollars a chair. 177 00:10:05,600 --> 00:10:10,320 Speaker 1: That's obviously now going to change drastically. US regulators said 178 00:10:10,400 --> 00:10:13,920 Speaker 1: they were not going to bail out Silicon Valley Bank. 179 00:10:14,200 --> 00:10:18,600 Speaker 1: Then a second bank has gone under, and now US 180 00:10:18,720 --> 00:10:22,720 Speaker 1: regulators are going to bail out Silicon Valley Bank, and 181 00:10:22,880 --> 00:10:26,839 Speaker 1: customers are apparently going to get another bailout, possibly at 182 00:10:26,840 --> 00:10:30,600 Speaker 1: this second bank. Don't worry, though, Joe Biden now says 183 00:10:30,600 --> 00:10:33,120 Speaker 1: he's going to use Valley to hold those responsible for 184 00:10:33,160 --> 00:10:37,520 Speaker 1: the Silicon Valley Bank failure quote fully accountable. CEO also 185 00:10:37,559 --> 00:10:41,680 Speaker 1: describes pulling money from bank hours before the collapse as 186 00:10:41,679 --> 00:10:44,960 Speaker 1: a US bank sitting on unrealized losses of six hundred 187 00:10:44,960 --> 00:10:48,480 Speaker 1: and twenty billion. In fact, we also know now that 188 00:10:48,559 --> 00:10:51,920 Speaker 1: Silicon Valley Bank employees actually received in their bank accounts 189 00:10:51,960 --> 00:10:55,760 Speaker 1: their bonuses hours before the bank was shut down. A 190 00:10:55,920 --> 00:11:01,679 Speaker 1: new report says, Wow, that's pretty, isn't it. So that's 191 00:11:01,720 --> 00:11:04,920 Speaker 1: now where we are. Silicon Valley Bank, You're gonna get 192 00:11:04,920 --> 00:11:11,040 Speaker 1: your money, no problem. And these employees were being told 193 00:11:11,480 --> 00:11:16,200 Speaker 1: got their bonuses. US Federal Deposit Insurance Corporation offered Silicon 194 00:11:16,280 --> 00:11:19,320 Speaker 1: Valley Bank employees forty five days of employment and one 195 00:11:19,360 --> 00:11:21,880 Speaker 1: point five times or salary. A new report says to 196 00:11:21,960 --> 00:11:25,040 Speaker 1: stay on and help them out. An FDIC official did 197 00:11:25,040 --> 00:11:27,000 Speaker 1: not comment on the details of CNN, but says the 198 00:11:27,040 --> 00:11:29,640 Speaker 1: standard practice and one of the first steps too for 199 00:11:29,720 --> 00:11:33,920 Speaker 1: the independent government agencies to take after being named receiver. 200 00:11:34,480 --> 00:11:37,480 Speaker 1: US workers also receive their annual bonuses on Friday, just 201 00:11:37,600 --> 00:11:42,240 Speaker 1: hours before the FDIC took over the collapse lender. Silicon 202 00:11:42,320 --> 00:11:45,199 Speaker 1: Valley Bank collapsed Friday morning after studding forty eight hours 203 00:11:45,200 --> 00:11:47,560 Speaker 1: in which a bank run and a capital crisis led 204 00:11:47,559 --> 00:11:50,720 Speaker 1: to the second largest failure of a financial institution in 205 00:11:50,960 --> 00:11:56,160 Speaker 1: US history. California regulators shuddered the tech lender and put 206 00:11:56,160 --> 00:11:59,160 Speaker 1: it under the control of the FDIC. The FDIC is 207 00:11:59,160 --> 00:12:01,600 Speaker 1: acting as a receiver, which typically means it will liquidate 208 00:12:01,640 --> 00:12:05,040 Speaker 1: the bank's assets to pay back its customers induce, including 209 00:12:05,040 --> 00:12:11,000 Speaker 1: depositors as well as creditors. Employees except essential and branch 210 00:12:11,040 --> 00:12:14,040 Speaker 1: workers were told to keep working remotely. The bank had 211 00:12:14,080 --> 00:12:16,400 Speaker 1: more than eight thousand, five hundred employees at the end 212 00:12:16,440 --> 00:12:19,640 Speaker 1: of twenty twenty two. The FDIC said the main office 213 00:12:19,679 --> 00:12:24,360 Speaker 1: in all seventeen branches of SVP, located in California, Massachusetts, 214 00:12:24,400 --> 00:12:29,280 Speaker 1: will open on Monday. The FDIC, an independent government agency 215 00:12:29,280 --> 00:12:33,000 Speaker 1: that insures bank deposits and overseas financial institutions, said all 216 00:12:33,080 --> 00:12:37,000 Speaker 1: insured depositors will have full access to their insured deposits 217 00:12:37,000 --> 00:12:40,200 Speaker 1: by no later than Monday morning. It said it would 218 00:12:40,200 --> 00:12:43,839 Speaker 1: pay uninsured depositors and advanced dividend within the next week. 219 00:12:44,520 --> 00:12:47,640 Speaker 1: The FDIC took over the mid morning Friday. Usually it 220 00:12:47,720 --> 00:12:51,840 Speaker 1: awaits until market closed, but they didn't wait. The conditions 221 00:12:51,920 --> 00:12:55,240 Speaker 1: quote deteriorated so quickly that it couldn't last just five 222 00:12:55,320 --> 00:12:59,600 Speaker 1: more hours, wrote Better Market CEO Dennis Keller. That's because 223 00:12:59,600 --> 00:13:01,959 Speaker 1: it's the hausers were drawing their money so fast that 224 00:13:02,000 --> 00:13:05,800 Speaker 1: the bank was insolvent and an interday closure was unavoidable 225 00:13:05,880 --> 00:13:09,600 Speaker 1: due to a classic bank run. So what is Biden 226 00:13:09,720 --> 00:13:13,240 Speaker 1: saying about this? Don't worry, I'm gonna hold those accountable 227 00:13:13,320 --> 00:13:15,319 Speaker 1: for this. Really, that's what you're gonna say, I'm gonna 228 00:13:15,320 --> 00:13:19,480 Speaker 1: hold those accountable for this. So no bailout, just kidding 229 00:13:19,480 --> 00:13:22,520 Speaker 1: a bailout. Another bank closes down, signature bank. Don't worry, 230 00:13:22,559 --> 00:13:25,080 Speaker 1: We're gonna have another bailout. And let me remind you 231 00:13:25,160 --> 00:13:29,120 Speaker 1: the experts of what they were saying. Jim Cramer over 232 00:13:29,120 --> 00:13:33,120 Speaker 1: at CNBC said this a month ago. Last month said 233 00:13:33,200 --> 00:13:39,880 Speaker 1: this about again about Silicon Valley Bank. Listen carefully and bibe. 234 00:13:40,280 --> 00:13:43,480 Speaker 1: The ninth best performer year to date is SVB Financial. 235 00:13:43,520 --> 00:13:45,719 Speaker 1: Don't you want this? Companies a merchant bag with a 236 00:13:45,760 --> 00:13:48,920 Speaker 1: deposit base. The Wall Street had mistakely concerned about sub 237 00:13:49,080 --> 00:13:51,200 Speaker 1: child Silk Valley Bank. We just bought one of our 238 00:13:51,200 --> 00:13:53,960 Speaker 1: favorite research firms, Boffa Davis, and it's become less dependent 239 00:13:54,040 --> 00:13:57,079 Speaker 1: upon private acqua e venture capitalist offerings. Wait a second, 240 00:13:57,160 --> 00:13:59,199 Speaker 1: let's try it up. Last year they could come back, Yes, 241 00:13:59,320 --> 00:14:01,520 Speaker 1: some of them come back here with a stock directly 242 00:14:01,520 --> 00:14:04,520 Speaker 1: affection oversold position. Stock was the fourth worst performance twenty 243 00:14:04,520 --> 00:14:07,040 Speaker 1: twenty two. I think the fears were not justified. It's 244 00:14:07,040 --> 00:14:09,400 Speaker 1: a very compelling situation. Hey. By the way, long term 245 00:14:09,400 --> 00:14:12,680 Speaker 1: private equiventure capital and I'm going away being the banker 246 00:14:12,760 --> 00:14:16,560 Speaker 1: to these immense pools of capital has always been a 247 00:14:16,679 --> 00:14:19,880 Speaker 1: very good business. Stock still cheap. Now. You have to 248 00:14:19,880 --> 00:14:22,360 Speaker 1: remember that a stock that falls sixty six percent, like 249 00:14:22,560 --> 00:14:25,640 Speaker 1: SPB Financial did last year, it takes it a lot 250 00:14:25,680 --> 00:14:28,520 Speaker 1: more to recover after losing two thirds of your value. 251 00:14:28,560 --> 00:14:30,720 Speaker 1: You need a two hundred percent game to get back 252 00:14:30,720 --> 00:14:33,680 Speaker 1: to even This is arithmetic, some people call it geometry, 253 00:14:33,880 --> 00:14:37,200 Speaker 1: So you could argue svb's nearly forty percent rally this 254 00:14:37,320 --> 00:14:40,040 Speaker 1: year is barely up drop in the bucket, and that's 255 00:14:40,080 --> 00:14:41,720 Speaker 1: how I want you to think it. I think it's 256 00:14:41,720 --> 00:14:44,280 Speaker 1: also a good example of why these bounceback moves might 257 00:14:44,440 --> 00:14:47,400 Speaker 1: be far from over. These stocks did have more room 258 00:14:47,440 --> 00:14:49,840 Speaker 1: to run, especially if you think they were driven down 259 00:14:49,880 --> 00:14:53,480 Speaker 1: to artificially low levels by tax law selling, artificial dumping 260 00:14:53,720 --> 00:14:56,040 Speaker 1: like we saw on Warner Brothers, Discovering or Tesla. That's 261 00:14:56,080 --> 00:14:58,440 Speaker 1: important because today was one of the worst days since 262 00:14:58,440 --> 00:15:01,760 Speaker 1: the year began, after these stocks were beating big participants 263 00:15:01,760 --> 00:15:04,800 Speaker 1: in the decline. I understand that many of the bounces 264 00:15:04,840 --> 00:15:07,120 Speaker 1: this year have come from stocks that were heavily shorter. 265 00:15:07,440 --> 00:15:09,480 Speaker 1: Many of them were correctly beaten down. It's just that 266 00:15:09,560 --> 00:15:12,840 Speaker 1: the decline's got a little too excessive when nothing really 267 00:15:12,880 --> 00:15:16,440 Speaker 1: bad happened, at least by the end. So there it is. 268 00:15:16,800 --> 00:15:22,200 Speaker 1: This guy's praising a doom Silicon Valley bank just last month. 269 00:15:22,200 --> 00:15:25,280 Speaker 1: The stock is quote still cheap. He has it up 270 00:15:25,320 --> 00:15:27,800 Speaker 1: on his big wall telling you you should buy this, 271 00:15:28,000 --> 00:15:32,040 Speaker 1: You should buy this, you should buy this, ha ha, 272 00:15:32,920 --> 00:15:37,600 Speaker 1: just kidding. Tiger Carlson also blasting Jim Kramer for hyping 273 00:15:37,600 --> 00:15:41,760 Speaker 1: the Doom Bank, saying he's nothing but a professional BS artist. 274 00:15:42,600 --> 00:15:46,280 Speaker 1: In fact, as with the FTX crypto scam, you may recall, 275 00:15:46,680 --> 00:15:49,880 Speaker 1: self described financial experts in the media were busy promoting 276 00:15:50,120 --> 00:15:53,520 Speaker 1: Silicon Valley Bank is a great investment that would last forever. 277 00:15:55,200 --> 00:15:58,160 Speaker 1: The formerly great but now quite embarrassing Forbes magazine in 278 00:15:58,200 --> 00:16:02,240 Speaker 1: fact named sv Beach was of America's best banks not 279 00:16:02,360 --> 00:16:07,120 Speaker 1: once but five years in a row. And of course, 280 00:16:07,160 --> 00:16:11,040 Speaker 1: inevitably you saw this coming. Here is professional BS artist 281 00:16:11,040 --> 00:16:15,240 Speaker 1: slash dumb person Jim Kramer of CNBC telling his viewers 282 00:16:15,240 --> 00:16:19,760 Speaker 1: to buy Silicon Valley Bank even though it was in 283 00:16:19,800 --> 00:16:23,760 Speaker 1: the process of going under. This is last month SVB Financial. 284 00:16:23,800 --> 00:16:26,000 Speaker 1: Don't you want this company's a merchant bag with a 285 00:16:26,040 --> 00:16:28,600 Speaker 1: deposit based The Wall Street had been mistakely concerned about 286 00:16:28,960 --> 00:16:31,440 Speaker 1: sub and sail Silkla Valley Bank. Recally about one of 287 00:16:31,440 --> 00:16:34,040 Speaker 1: our favorite research first Boffa Javians, and it's become less 288 00:16:34,040 --> 00:16:37,480 Speaker 1: dependent upon private acqui and ventric capitalist offerings. Wait a second, 289 00:16:37,560 --> 00:16:39,160 Speaker 1: let's try it up. Last year they could come back 290 00:16:39,320 --> 00:16:42,440 Speaker 1: long term private acquiventure capital, and I'm going away being 291 00:16:42,480 --> 00:16:46,200 Speaker 1: a banker to these best immense pools of capital. Has 292 00:16:46,280 --> 00:16:49,600 Speaker 1: always been a very good business. Spb's nearly forty percent 293 00:16:49,720 --> 00:16:52,800 Speaker 1: rally this year is barely up. Drop in the bucket. 294 00:16:53,520 --> 00:16:56,240 Speaker 1: That's maybe B is great. If that guy ever endorses 295 00:16:56,360 --> 00:17:00,600 Speaker 1: anything you're doing. Moved to the Canary Islands, change your 296 00:17:00,680 --> 00:17:05,760 Speaker 1: name because disaster's coming. Tucker's not that far off from reality. 297 00:17:05,840 --> 00:17:10,399 Speaker 1: By the way, jem hines, the Bank of Cyprus keeps 298 00:17:10,400 --> 00:17:13,960 Speaker 1: coming up in the Trump Russia investigation. That's what they're 299 00:17:13,960 --> 00:17:16,200 Speaker 1: trying to talk about. I'm not joking. That clip is 300 00:17:16,200 --> 00:17:19,320 Speaker 1: actually now showing back up on social media. You can't 301 00:17:19,359 --> 00:17:23,240 Speaker 1: make this up. But hey, when the banks keep collapsing, 302 00:17:23,320 --> 00:17:26,800 Speaker 1: don't worry. It won't cost you anything. It's not going 303 00:17:26,840 --> 00:17:30,480 Speaker 1: to cost you a dime. Why Because we're smart people, 304 00:17:30,680 --> 00:17:35,560 Speaker 1: right Janet Yellen earlier today saying oh, everything's fine on TV. 305 00:17:36,840 --> 00:17:38,960 Speaker 1: I want to get straight to it because the markets 306 00:17:38,960 --> 00:17:42,480 Speaker 1: will soon reopen for trading. Does the government need to 307 00:17:42,520 --> 00:17:48,840 Speaker 1: intervene and take emergency measures because of svb's failure, Well, 308 00:17:49,119 --> 00:17:53,879 Speaker 1: let me say America's economy relies on a safe and 309 00:17:53,960 --> 00:17:59,000 Speaker 1: sound banking system that can provide for the credit needs 310 00:17:59,040 --> 00:18:04,480 Speaker 1: of our solds in businesses. So whenever a bank, especially 311 00:18:04,480 --> 00:18:11,800 Speaker 1: one like Silicon Valley Bank with billions of dollars in deposits, fails, 312 00:18:11,880 --> 00:18:18,280 Speaker 1: it's clearly a concern from the standpoint of depositors, many 313 00:18:18,320 --> 00:18:22,480 Speaker 1: of which may be small businesses. They rely on access 314 00:18:22,520 --> 00:18:27,160 Speaker 1: to their funds to be able to pay the bills 315 00:18:27,240 --> 00:18:30,720 Speaker 1: that they have, and they employ tens of thousands of 316 00:18:30,880 --> 00:18:35,560 Speaker 1: people across the country. We've been hearing from those depositors 317 00:18:35,560 --> 00:18:40,360 Speaker 1: and other concerned people this weekend. So let me say 318 00:18:40,400 --> 00:18:44,560 Speaker 1: that I've been working all weekend with our banking regulators 319 00:18:44,640 --> 00:18:52,399 Speaker 1: to design appropriate policies to address this situation. I can't 320 00:18:52,480 --> 00:18:56,760 Speaker 1: really provide further details at this time, but what I 321 00:18:56,840 --> 00:19:00,680 Speaker 1: do want to do is emphasize that the American banking 322 00:19:00,760 --> 00:19:07,520 Speaker 1: system is really safe and well capitalized. It's resilient. Can 323 00:19:07,560 --> 00:19:11,720 Speaker 1: you say whether these problems were unique to Silicon Valley 324 00:19:11,760 --> 00:19:15,000 Speaker 1: Bank or can you say whether there will be other 325 00:19:15,080 --> 00:19:19,879 Speaker 1: regional bank failures. Well, look, let me just say that 326 00:19:20,480 --> 00:19:24,120 Speaker 1: we want to make sure that the trouples that exist 327 00:19:24,280 --> 00:19:29,280 Speaker 1: at one bank don't create contagion to others that are 328 00:19:29,480 --> 00:19:36,840 Speaker 1: sound and a goal always of supervision and regulation is 329 00:19:37,200 --> 00:19:43,080 Speaker 1: to make sure that contagion can't can't occur. Your counterpart 330 00:19:43,160 --> 00:19:46,159 Speaker 1: in the United Kingdom has said that the government there 331 00:19:46,680 --> 00:19:50,000 Speaker 1: has ruled out a bailout of the UK arm of 332 00:19:50,040 --> 00:19:54,880 Speaker 1: Silicon Valley Bank. Have you also ruled out that kind 333 00:19:54,880 --> 00:20:00,400 Speaker 1: of government intervention? Well, let me be clear that during 334 00:20:00,440 --> 00:20:09,440 Speaker 1: the financial crisis there were investors and owners of systemic 335 00:20:09,600 --> 00:20:12,919 Speaker 1: large banks that were built out, and we're certainly not 336 00:20:13,520 --> 00:20:17,720 Speaker 1: looking and the reforms that have been put in place 337 00:20:18,200 --> 00:20:21,359 Speaker 1: means that we're not going to do that again. But 338 00:20:21,640 --> 00:20:24,800 Speaker 1: we are concerned to bet depositors and are focused on 339 00:20:25,680 --> 00:20:29,440 Speaker 1: trying to meet their needs. Do you expect a deal 340 00:20:29,560 --> 00:20:32,800 Speaker 1: or something to happen that can reassure the markets before 341 00:20:33,040 --> 00:20:37,960 Speaker 1: Asia opens tonight and the US markets open tomorrow. We 342 00:20:38,119 --> 00:20:43,120 Speaker 1: certainly are working to address the situation in a timely way. Now, 343 00:20:43,520 --> 00:20:45,680 Speaker 1: I know you know this region of the country so 344 00:20:45,720 --> 00:20:50,200 Speaker 1: well because you served at the San Francisco years ago. 345 00:20:51,080 --> 00:20:54,480 Speaker 1: The tech sector has already been suffering from layoffs, It's 346 00:20:54,520 --> 00:20:58,120 Speaker 1: already under pressure, and this is really the hub of 347 00:20:58,200 --> 00:21:04,240 Speaker 1: American innovation. How severe will the consequences be for that innovation? 348 00:21:05,000 --> 00:21:09,040 Speaker 1: I think it depends on how this situation is resolved. 349 00:21:09,240 --> 00:21:15,399 Speaker 1: But will aware that many startup firms have deposits in 350 00:21:15,600 --> 00:21:21,000 Speaker 1: venture capital firms have deposits at this bank. They have 351 00:21:21,080 --> 00:21:26,920 Speaker 1: no idea what's happening right now. Second bank has just failed. 352 00:21:27,080 --> 00:21:30,320 Speaker 1: She has no clue what she's doing. We also have 353 00:21:30,359 --> 00:21:33,200 Speaker 1: to talk about how woke the bank was that went 354 00:21:33,280 --> 00:21:35,760 Speaker 1: under a lot of people to understand how woke the 355 00:21:35,840 --> 00:21:43,000 Speaker 1: bank actually was. Silicon Valley Bank was all about the wokeness. 356 00:21:43,880 --> 00:21:47,359 Speaker 1: They loved working with woke companies. They love working with 357 00:21:47,400 --> 00:21:50,880 Speaker 1: liberal companies. They love working with tech companies. They love 358 00:21:50,960 --> 00:21:54,040 Speaker 1: working with For example, the streaming giant Roku, we're being told, 359 00:21:54,080 --> 00:21:57,040 Speaker 1: had four hundred and eighty seven million in cash on 360 00:21:57,119 --> 00:22:01,679 Speaker 1: hand held by Silicon Valley Bank. At streaming Giant, Roku 361 00:22:02,359 --> 00:22:05,639 Speaker 1: had about one fourth of its cash and equivalence, amounting 362 00:22:05,680 --> 00:22:08,520 Speaker 1: to nearly a half a billion dollars held in that bank. 363 00:22:09,440 --> 00:22:13,440 Speaker 1: The entertainment company remains unsure how much of that cash 364 00:22:13,440 --> 00:22:17,840 Speaker 1: it will recover. According to Variety, the collapse of Silicon 365 00:22:17,920 --> 00:22:20,080 Speaker 1: Valley Bank was caused by the massive run the bank, 366 00:22:20,119 --> 00:22:23,280 Speaker 1: with customers driving withdrawals of forty two billion this last 367 00:22:23,280 --> 00:22:26,800 Speaker 1: week alone. The majority of it Thursday Friday, the sixteenth 368 00:22:26,960 --> 00:22:31,000 Speaker 1: largest bank by assets, with the US Federal Reserve data 369 00:22:31,119 --> 00:22:33,520 Speaker 1: showing the bank had two or nine billion assets as 370 00:22:33,520 --> 00:22:36,960 Speaker 1: of December the thirty first. But this had to do 371 00:22:37,040 --> 00:22:39,200 Speaker 1: a lot with the fact that this bank was just 372 00:22:39,240 --> 00:22:44,919 Speaker 1: a woke bank. It was a woke Silicon Valley bank. 373 00:22:45,680 --> 00:22:49,920 Speaker 1: It was more concerned about global warming than they were 374 00:22:49,960 --> 00:22:58,040 Speaker 1: about shareholder returns. Yeah. Home Depot founder Bernie Marcus said 375 00:22:58,119 --> 00:23:02,200 Speaker 1: on Friday that Americans there was time for Americans to 376 00:23:02,320 --> 00:23:06,200 Speaker 1: wake up after the woke Silicon Valley bank collapsed because 377 00:23:06,200 --> 00:23:08,960 Speaker 1: they were more concerned about global warming than they do 378 00:23:09,040 --> 00:23:14,480 Speaker 1: about shareholder returns and fiscal responsibility. Listen to part of 379 00:23:14,480 --> 00:23:17,640 Speaker 1: this conversation that he had on Fox with Neil Cavudo. 380 00:23:18,280 --> 00:23:21,199 Speaker 1: But he's watching it just the same. The Home Depot 381 00:23:21,200 --> 00:23:24,240 Speaker 1: co founder kind enough to join us now, Bernie, always 382 00:23:24,240 --> 00:23:28,080 Speaker 1: good seeing you. Do you think histories repeating itself? Should 383 00:23:28,080 --> 00:23:32,520 Speaker 1: people stay calm? What are you telling them? Well? All 384 00:23:32,560 --> 00:23:35,840 Speaker 1: I know is that I can't wait for Biden to 385 00:23:35,960 --> 00:23:38,879 Speaker 1: Can I get on the speech again and talk about 386 00:23:38,880 --> 00:23:43,240 Speaker 1: how great the economy is and how it's moving forward 387 00:23:43,240 --> 00:23:46,760 Speaker 1: and getting stronger by the day. And this is an 388 00:23:46,760 --> 00:23:51,040 Speaker 1: indication that whatever he says is not true, and maybe 389 00:23:51,080 --> 00:23:54,960 Speaker 1: the America people will finally wake up and understand they 390 00:23:54,960 --> 00:23:58,680 Speaker 1: were living in very tough times that in fact, the 391 00:23:59,040 --> 00:24:03,159 Speaker 1: recession may have already started. Who knows, but it doesn't 392 00:24:03,200 --> 00:24:07,040 Speaker 1: look good. And I feel bad for all these people 393 00:24:07,440 --> 00:24:10,800 Speaker 1: that lost all their money in this woke bank. You know, 394 00:24:10,840 --> 00:24:15,640 Speaker 1: it was more distressing to hear that the bank officials 395 00:24:15,680 --> 00:24:20,640 Speaker 1: sold off their stock before this happened. It's depressing to me. 396 00:24:21,400 --> 00:24:24,120 Speaker 1: Who knows whether there's justice The Partment will go after them. 397 00:24:24,840 --> 00:24:29,040 Speaker 1: They are woke companies, so I guess not, and they'll 398 00:24:29,080 --> 00:24:31,240 Speaker 1: probably get away. When you say, well, when you say 399 00:24:31,359 --> 00:24:35,560 Speaker 1: woke company that's in technology, venture capital funded startups and 400 00:24:35,640 --> 00:24:38,560 Speaker 1: all of that, they might have been just proportionally exposed 401 00:24:38,560 --> 00:24:41,240 Speaker 1: to this. Do you think there are others like like 402 00:24:41,400 --> 00:24:45,280 Speaker 1: this bank out there? I think they probably are. Yeah, 403 00:24:45,320 --> 00:24:48,679 Speaker 1: I think that the system. I think that the administration 404 00:24:49,200 --> 00:24:53,560 Speaker 1: has pushed many of these banks into more concern about 405 00:24:53,640 --> 00:24:59,200 Speaker 1: global warming than they do about shareholder return And these 406 00:24:59,240 --> 00:25:06,080 Speaker 1: banks badly run because everybody is focused on diversity and 407 00:25:06,359 --> 00:25:10,000 Speaker 1: all of the walk issues and not concentrating on one 408 00:25:10,040 --> 00:25:16,639 Speaker 1: thing they should, which is shareholder returns instead of protecting 409 00:25:16,640 --> 00:25:22,360 Speaker 1: the shareholders and their and their employees. Uh, they're more 410 00:25:22,400 --> 00:25:26,720 Speaker 1: concerned about the social policies. And I think it's probably 411 00:25:27,440 --> 00:25:30,560 Speaker 1: a badly run bank. Uh. They've been there for a 412 00:25:30,560 --> 00:25:35,119 Speaker 1: lot of years. It's pathetic that so many people lost 413 00:25:35,200 --> 00:25:39,080 Speaker 1: money that will get it back. And you know, Bernie, 414 00:25:39,359 --> 00:25:41,119 Speaker 1: you might be right on some of them. You might. 415 00:25:41,200 --> 00:25:43,359 Speaker 1: By the way, I love this guy, right, this is 416 00:25:43,400 --> 00:25:47,280 Speaker 1: the This is what I love about this home depot founder. 417 00:25:47,600 --> 00:25:50,760 Speaker 1: You know, Bernie Markets is getting older. He doesn't care 418 00:25:50,840 --> 00:25:53,560 Speaker 1: to if anybody he says. I think the assistant the 419 00:25:53,560 --> 00:25:56,280 Speaker 1: administration has pushed many of these banks into more and 420 00:25:56,440 --> 00:25:59,520 Speaker 1: more concerned about global warming than what they do for 421 00:25:59,560 --> 00:26:03,520 Speaker 1: sharehold to returns. And these banks are badly run because 422 00:26:03,560 --> 00:26:06,680 Speaker 1: everybody is focused on diversity and all of the woke 423 00:26:06,760 --> 00:26:09,359 Speaker 1: issues and not concentrating on the one thing they should, 424 00:26:09,359 --> 00:26:13,240 Speaker 1: which is shareholder returns instead of protecting the shareholders and 425 00:26:13,280 --> 00:26:18,280 Speaker 1: their employees, the depositors. Right, they're more concerned about social policies. 426 00:26:18,960 --> 00:26:22,240 Speaker 1: And I think it's probably a badly run bank. They've 427 00:26:22,280 --> 00:26:25,240 Speaker 1: been there for a lot of years. It's pathetic that 428 00:26:25,359 --> 00:26:27,280 Speaker 1: some of people lost their money won't get it back. 429 00:26:28,080 --> 00:26:29,639 Speaker 1: All right, Before I get into that. 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Switch to Patriot Mobile. 443 00:27:15,280 --> 00:27:18,679 Speaker 1: You'll be supporting First and Second Amendment groups, the rights 444 00:27:18,680 --> 00:27:22,199 Speaker 1: of unborn children, and even helping with adoptions. It is 445 00:27:22,280 --> 00:27:25,480 Speaker 1: easy to switch. Call them right now or go online 446 00:27:25,480 --> 00:27:30,000 Speaker 1: to Patriotmobile dot com slash ferguson. That's Patriotmobile dot com 447 00:27:30,040 --> 00:27:33,560 Speaker 1: slash ferguson, or call them eight seven eighth Patriot You're 448 00:27:33,560 --> 00:27:37,480 Speaker 1: gonna get free activation with the offer code ferguson. That's 449 00:27:37,520 --> 00:27:41,520 Speaker 1: eight seven eight Patriot or patriotmobile dot com slash Ferguson. 450 00:27:42,280 --> 00:27:44,679 Speaker 1: All right, now, I want to go back to this story. 451 00:27:45,280 --> 00:27:47,680 Speaker 1: He said, here's the other thing. Listen carefully. This is 452 00:27:47,920 --> 00:27:49,600 Speaker 1: get It's a guy that has nothing to lose. To 453 00:27:49,680 --> 00:27:52,119 Speaker 1: this point, He's like, look, I've I've done my time 454 00:27:52,920 --> 00:27:56,760 Speaker 1: and building companies. I build home depot. You want to 455 00:27:56,760 --> 00:27:58,239 Speaker 1: know what you're really going on. I don't care if 456 00:27:58,240 --> 00:28:00,919 Speaker 1: I offend people, and I love This is why you 457 00:28:00,920 --> 00:28:03,960 Speaker 1: should listen sometimes to your elders, because some of them 458 00:28:04,000 --> 00:28:06,119 Speaker 1: have things to say that other people won't take the 459 00:28:06,240 --> 00:28:08,520 Speaker 1: risk of saying. And he's got his money and he 460 00:28:08,560 --> 00:28:10,520 Speaker 1: doesn't care, and he's telling you the truth. And he 461 00:28:10,560 --> 00:28:15,399 Speaker 1: said this. The FEDS keep raising rates, and inflation keeps 462 00:28:15,400 --> 00:28:19,040 Speaker 1: going in the wrong direction. It's not staying where it 463 00:28:19,080 --> 00:28:22,120 Speaker 1: should be. People are struggling. People can't pay their bills, 464 00:28:22,160 --> 00:28:24,960 Speaker 1: they can't fill their tanks with gas. And if you 465 00:28:25,040 --> 00:28:27,560 Speaker 1: think that's a good sign, I don't think it is. 466 00:28:28,320 --> 00:28:32,960 Speaker 1: And we have an administration that's obtus to this. They 467 00:28:33,040 --> 00:28:36,600 Speaker 1: keep talking about the great times and how good it is. 468 00:28:36,760 --> 00:28:39,880 Speaker 1: It's not. Somebody with the same head has to come 469 00:28:39,880 --> 00:28:42,520 Speaker 1: in and understand that you can't do two things. Number one, 470 00:28:43,040 --> 00:28:47,920 Speaker 1: you can't keep raising rates referring to interest rates, and two, 471 00:28:48,000 --> 00:28:51,000 Speaker 1: you can't keep inflation as strong as it is, and 472 00:28:51,120 --> 00:28:55,640 Speaker 1: you can't tax people more than they are. His proposal 473 00:28:55,680 --> 00:28:58,000 Speaker 1: referring to Biden's proposal tax the middle class and the 474 00:28:58,080 --> 00:29:00,440 Speaker 1: riches about as dumb as dumb as I've heard in 475 00:29:00,480 --> 00:29:03,040 Speaker 1: a long time. In a recession like this, you don't 476 00:29:03,120 --> 00:29:05,640 Speaker 1: do things like that. And by the way, Joe Biden 477 00:29:05,680 --> 00:29:07,560 Speaker 1: said in the back of the day on record, you 478 00:29:07,640 --> 00:29:11,240 Speaker 1: don't raise interests or you don't raise taxes when you're 479 00:29:11,240 --> 00:29:14,280 Speaker 1: dealing with inflation. It's the dumbest thing you can do. 480 00:29:14,320 --> 00:29:16,880 Speaker 1: But now he needs more money because he wants more control. 481 00:29:17,680 --> 00:29:19,760 Speaker 1: That's what this all comes down to, is the issue 482 00:29:19,800 --> 00:29:23,840 Speaker 1: of control. That's why he's saying it the way he is. 483 00:29:23,880 --> 00:29:25,520 Speaker 1: But Bernie Marcus just said it the way that it 484 00:29:25,520 --> 00:29:29,080 Speaker 1: should have been, said, woke Silicon Valley Bank was more 485 00:29:29,160 --> 00:29:34,520 Speaker 1: concerned about global warming than shareholders returns and quotas. And 486 00:29:34,680 --> 00:29:37,720 Speaker 1: he's right. And if you think this is only in America, 487 00:29:37,800 --> 00:29:39,880 Speaker 1: you're wrong, because as you heard Janet Yellen say a 488 00:29:39,960 --> 00:29:42,240 Speaker 1: moment ago when I was playing that audio, the UK 489 00:29:42,520 --> 00:29:44,560 Speaker 1: is now mulling over the idea of a bailout for 490 00:29:44,600 --> 00:29:48,600 Speaker 1: the tech firms after the silicon collapse. Authorities in the 491 00:29:48,680 --> 00:29:53,080 Speaker 1: UK are considering a possible bailout for all the tech 492 00:29:53,160 --> 00:29:56,880 Speaker 1: firms after the collapse the British brands of Silicon Valley Bank. 493 00:29:57,600 --> 00:30:01,640 Speaker 1: Jeremy Hunt, the Chancellor, is poorly mowing a possible bailout 494 00:30:01,640 --> 00:30:04,400 Speaker 1: for tech firms and startups that were affected by the 495 00:30:04,440 --> 00:30:08,120 Speaker 1: collapse of the Silicon Valley Bank UK. The failure of 496 00:30:08,280 --> 00:30:11,200 Speaker 1: SVP represents the second largest failure of a bank in 497 00:30:11,320 --> 00:30:13,800 Speaker 1: US history, only beaten out by the collapse of Washington 498 00:30:13,880 --> 00:30:17,320 Speaker 1: Mutual during the OA financial crisis. According to the report 499 00:30:17,400 --> 00:30:21,080 Speaker 1: by the BBC, there is now significant fear about the 500 00:30:21,200 --> 00:30:24,720 Speaker 1: knock on effect the bank's collapse could have on startups 501 00:30:24,720 --> 00:30:27,400 Speaker 1: in Britain, with many firms set to lose large sums 502 00:30:27,400 --> 00:30:30,800 Speaker 1: of money after the Bank of England declared that SVP 503 00:30:31,280 --> 00:30:36,440 Speaker 1: SVP UK would enter in solving c As a result, 504 00:30:36,480 --> 00:30:39,320 Speaker 1: the Treasury is now reportedly aiming to offset the damage 505 00:30:39,360 --> 00:30:41,959 Speaker 1: done by the bank's collapse, with Hunt telling the public 506 00:30:42,000 --> 00:30:48,120 Speaker 1: broadcaster BBC that authorities are considering various ways of recusing 507 00:30:48,200 --> 00:30:54,120 Speaker 1: the tech firms affected. So another bailout. One such rescue 508 00:30:54,240 --> 00:30:57,520 Speaker 1: plan involves providing an emergency cash lifeline for companies hit 509 00:30:57,640 --> 00:31:01,320 Speaker 1: by SVB going under quote. We want to find a 510 00:31:01,320 --> 00:31:05,520 Speaker 1: way that ministries can help and avoid all the losses 511 00:31:05,560 --> 00:31:09,040 Speaker 1: of the incredibly promising firms, the Chancellor wrote, arguing that 512 00:31:09,120 --> 00:31:11,600 Speaker 1: while the impact of the United Kingdom's overall economy is 513 00:31:11,640 --> 00:31:15,680 Speaker 1: expect to be minimal, SVPs collapsed would nevertheless risk wiping 514 00:31:15,680 --> 00:31:20,880 Speaker 1: out many of the countries budding tech enterprises. So, in 515 00:31:20,880 --> 00:31:24,080 Speaker 1: other words, we're gonna pick winners and losers in different sectors, 516 00:31:24,120 --> 00:31:26,160 Speaker 1: same thing that they're talking about doing here. We like 517 00:31:26,360 --> 00:31:29,080 Speaker 1: big tech, we like tech firms, we like quote companies. 518 00:31:29,320 --> 00:31:32,040 Speaker 1: We don't want them to be hurt, so we'll just say, hey, 519 00:31:32,080 --> 00:31:35,080 Speaker 1: we're not going to allow them to be hurt, and 520 00:31:35,280 --> 00:31:37,320 Speaker 1: we like what they're doing, so we'll bail them out. 521 00:31:38,200 --> 00:31:42,240 Speaker 1: That's how we'll do this. We'll bail them out that way. 522 00:31:42,320 --> 00:31:44,200 Speaker 1: Does this sound like a very good idea or does 523 00:31:44,200 --> 00:31:46,840 Speaker 1: it sound like a disaster? To me? It sounds like 524 00:31:46,880 --> 00:31:49,960 Speaker 1: a disaster. Does it sound like something we should be 525 00:31:50,000 --> 00:31:52,800 Speaker 1: supporting or advocating for. No, it doesn't. It sounds again 526 00:31:52,920 --> 00:31:57,840 Speaker 1: like a disaster. Sounds like a terrible, terrible, terrible, terrible, 527 00:31:57,960 --> 00:32:02,240 Speaker 1: terrible idea, something that should not happen. Yet here we 528 00:32:02,280 --> 00:32:07,600 Speaker 1: are having this conversation because it's a liberal bank with 529 00:32:07,720 --> 00:32:12,560 Speaker 1: a woke ideology. That's what it is, a liberal bank 530 00:32:13,160 --> 00:32:17,560 Speaker 1: with a woke ideology. They're gonna probably bail them out, 531 00:32:18,080 --> 00:32:21,160 Speaker 1: they're gonna prop them up, and they're gonna tell you 532 00:32:21,200 --> 00:32:23,520 Speaker 1: it's not going to cost you taxpayers dollars. And when 533 00:32:23,520 --> 00:32:26,280 Speaker 1: they tell you that, you need to understand they are 534 00:32:26,400 --> 00:32:30,840 Speaker 1: one thousand percent lying to you. This will cost you 535 00:32:30,880 --> 00:32:34,680 Speaker 1: some taxpayers dollars. Anyone that tells you that it's not 536 00:32:34,920 --> 00:32:39,120 Speaker 1: they're lying to you. They are lying to you. I'll 537 00:32:39,160 --> 00:32:43,560 Speaker 1: say it one more time. They are lying to you. 538 00:32:44,400 --> 00:32:46,520 Speaker 1: This is going to cost us all a hell of 539 00:32:46,560 --> 00:32:49,720 Speaker 1: a lot of money. All right. Lastly, please make sure 540 00:32:49,720 --> 00:32:54,040 Speaker 1: you hit that subscribe button or auto download button wherever 541 00:32:54,160 --> 00:32:56,920 Speaker 1: you are listening to this podcast right now, and take 542 00:32:56,960 --> 00:33:00,200 Speaker 1: a moment to write us a five star review. On 543 00:33:00,240 --> 00:33:02,640 Speaker 1: the Left have been attacking our podcast, writing us bad 544 00:33:02,680 --> 00:33:05,840 Speaker 1: reviews on purpose. So if you would help us fight 545 00:33:05,880 --> 00:33:08,400 Speaker 1: back by writing us a good review, a five star review, 546 00:33:08,680 --> 00:33:11,000 Speaker 1: and share this podcast with your family and friends on 547 00:33:11,080 --> 00:33:14,240 Speaker 1: social media to help us, grow, See you back here tomorrow.