Sunday morning U.S. Treasury Secretary Janet Yellen appeared on Sunday talk shows to announce that the Fed was NOT bailing out Silicon Valley Bank or any other banks, as they did in 2008.
However, faced with the possibility of bank runs and a Black Monday collapse of the stock market, the Feds apparently reversed course (or maybe this was their intention all along?) and did just exactly what they said they would not do, and put into place a program to bail out depositors who were not covered by the FDIC's limit of $250k per account.
The FDIC also closed another bank, Signature Bank in New York, but assured depositors that they could get all of their money out of their accounts on Monday.
And it worked, as futures trading that began Sunday night jumped up, instead of crashing, and Wall Street breathed a deep sigh of relief.
We now have had 3 FDIC-insured banks fail in 5 days, but it doesn't matter if your account was insured or not, as the Fed is just going to give everyone their money back.
So the financial Armageddon has been postponed, again. The Big Tech billionaires, like Mark Cuban, whined and complained over the weekend that the Fed was not stepping in to save them, so the Fed obliged.
The banking system was saved, for now, so the $billions can continue to pour into Wall Street to fund the military industrial complex to continue their wars, as well as $billions flowing into Big Pharma to keep funding never-ending emergency use authorizations for new drugs and vaccines.
This won't fix the systemic problem with our financial system, but at least depositors should be able to get access to their money Monday, even though that money will be worth far less than it was on Friday.
Get ready for the mass consolidation of the banking industry now and the rollouts of Digital IDs and eventually Central Bank Digital Currencies (CBDCs).
