Posted on 03/21/2023 4:52:23 AM PDT by Oldeconomybuyer
Treasury Secretary Janet Yellen said Tuesday the government is ready to provide further guarantees of deposits if the banking crisis worsens.
In remarks prepared for a speech to the American Bankers Association, the former Federal Reserve chair said authorities believe they have taken appropriate actions to stem liquidity problems in the sector, but will do more if needed.
“The steps we took were not focused on aiding specific banks or classes of banks. Our intervention was necessary to protect the broader U.S. banking system,” Yellen said. “And similar actions could be warranted if smaller institutions suffer deposit runs that pose the risk of contagion.”
“The situation is stabilizing. And the U.S. banking system remains sound,” Yellen said. “The Fed facility and discount window lending are working as intended to provide liquidity to the banking system. Aggregate deposit outflows from regional banks have stabilized.”
(Excerpt) Read more at cnbc.com ...
“backstop” = stealing money from Americans to pay off
select bankers and billionaires and Chinese
who are actually NOT ENTITLED to that money.
It seems that each day the government takes on more authority than was ever permitted in the Constitution.
They are now completely out of control. Freedom was great while it lasted.
Is this the plan? The government buys up all the banks and then forces digital currency on us.
These little Rats are genetically deficient weirdos. But still dangerous.
The U.S. Treasury isn’t bailing out banks here. It’s protecting the money supply and propping up the value of the U.S. dollar.
We know who the contagion is
The value of the dollar isn’t propped up by declaring your gonna insure trillions in deposits with money we don’t have.
This again merely rewards reckless behavior. Ackman and the rest of the investment class have been rabid about more government protections. Investors are nothing more than socialist when they are on a losing side.
“It’s protecting the money supply and propping up the value of the U.S. dollar.”
No, it is not. If it wanted to do that, they wouldn’t let the banks operate as they have. This has been a multiyear setup.
They are Nationalizing the banking system.
““It’s protecting the money supply and propping up the value of the U.S. dollar.”
No, it is not. If it wanted to do that, they wouldn’t let the banks operate as they have. This has been a multiyear setup.
They are Nationalizing the banking system.”
Post of the Decade. Full stop this is what they are doing, because unless they do it, they will not be able to eliminate privacy.
” because unless they do it, they will not be able to eliminate privacy.”
I see you pay attention to the situation. You are right. This is not about banking and money control, they have that already. This is about removing the last of everyone’s privacy. Once they know what you spend money on, they know, and can control, everything.
Sure...let’s just shoot the works!
Backstop the banks, pay $5M reparations to every Black person, unlimited illegal immigration, free trans surgeries for everyone who wants it.
I never thought I’d see the day when putting money in a bank that built its reserves on long-term U.S. Treasury bonds would be considered “reckless behavior” by any of the parties involved.
I’m sorry — I must have missed something. When has the U.S. banking system ever NOT been “nationalized” in your lifetime?
A terrible killing disease is spreading throughout the banking system, and it is not confined to only the US, it is world-wide. Think of this as COVID-19 for the economy.
The inflation of US dollars has had worldwide implications far beyond the (tenuous and porous) borders of our country.
And depend upon it, The Powers That Be will come up with exactly the wrong prescription, and continue to worsen the degeneration of that carefully built international banking scheme that has worked since the end of the Second World War.
Kinda rhetorical dontcha think?
If Yellen says that the banking system is sound, be very afraid because it most likely is not! Nothing, absolutely nothing, that this regime says or does is truthful....
The system was 250k. That was the deal.
This is rewards the people who didn’t plan for such conditions and now are able to have their money insured by the gov with no premium paid on such risks. What a deal.
Suppose someone buys a home for $400,000.
As part of the closing process, a payment of $400,000 is made from one bank account (on behalf of the buyer) to a closing agent. The proceeds of the sale are then paid to the seller.
How does this process get done without exposing 2-3 parties to the risk of losing the money in a bank failure?
Is anyone in this process "reckless and irresponsible" for getting involved in the sale of a property in excess of a $250,000 FDIC limit?
This is to counter her own testimony to Congress just a few days ago.
From NBC News:
“ Republican Sen. James Lankford of Oklahoma pressed Yellen about how widely the uninsured deposit backstops will apply across the banking industry.
“Will the deposits in every community bank in Oklahoma, regardless of their size, be fully insured now?” asked Lankford. “Will they get the same treatment that SVB just got, or Signature Bank just got?”
Yellen acknowledged they would not.
Uninsured deposits, she said, would only be covered in the event that a “failure to protect uninsured depositors would create systemic risk and significant economic and financial consequences.”
Lankford said the impact of this standard would be that small banks would be less appealing to depositors with more than $250,000, the current FDIC insurance threshold.”
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