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> “The American people are going to pay the $16 billion bill to prevent the collapse of Silicon Valley Bank,” Kelleher That’s the biggest lie ever told, unless
by sheepscreek 3y ago
> “The American people are going to pay the $16 billion bill to prevent the collapse of Silicon Valley Bank,” Kelleher
That’s the biggest lie ever told, unless someone can enlighten me on the contrary.
For a govt that is > $30 trillion dollars in debt, the taxes don’t even begin to cover its obligations. In other words, the American peoples’ taxes ($2-3T) will barely cover the interest on existing debt. That number also includes taxes collected from non-nationals on US soil, btw :)
So, who is really on the hook - when a govt will literally print itself more money? It’s a good question for economists…
UPDATE: I thought about it a bit and the answer came to me. On the hook are treasury bond holders and anyone with USD cash/in their banks. Not just the American people.
- butlerm 3y agoTaxpayers as such are not going to pay one dime to cover what would otherwise be losses to depositors at Silicon Valley Bank. The FDIC bills the actual cost of deposit insurance to banks, not to the federal government. It is a cost of doing business, and not a particularly large one either. No one should expect bank fees to change very much to cover losses like this. Borrowers might have to pay slightly higher interest rates and that is about it. Compared to the other causes of high interest rates it is hardly worth worrying about. Rounding error territory. The prospect of severe losses to uninsured depositors in the event of a bank failure is a much worse problem.
- tmaly 3y agoSomeone will pay in the end. Unfortunately it won’t be the people who should.