15 Years Later and Is the US Banking System Still Safe?
Authored by Jim Quinn via The Burning Platform blog
With the recent implosion of Silicon Valley Bank and Signature Bank, the largest bank failures since 2008, the sole job of Wall Street controlled Treasury Secretaries is to keep the confidence game going and to protect their real constituents – the Wall Street bankers. And just as they did fifteen years ago, the powers that once again used taxpayer funds to bail out reckless bankers.
There are many similarities between what was happening in 2008 and what is happening today. Bear Stearns went belly-up in March 2008 and was taken over by JP Morgan in an arranged marriage by Bernanke and the Fed. The usual suspects assured the country this was a one-off situation and the banking system was strong. The Wall Street banks had been reporting huge profits because they were hiding the massive losses on their balance sheets. If they didn’t foreclose, they didn’t have to write off the mortgages. The toxic debt just kept building.
The narrative being spun is this is a regional banking crisis confined to smaller banks. This narrative is being spun by the big Wall Street banks and their captured media mouthpieces, with the intent that depositors at smaller banks would panic and shift their deposits to the “safe” Wall Street banks. The truth is that the Wall Street banks have massive levels of unrealized losses and desperately need deposits to keep them from facing the same fate as Silicon Valley and Signature. Those unrealized losses aren’t going away and will have to be realized shortly.
When Biden, Yellen, and the rest of the Wall Street protection team tell you the banking system is safe and they have it under control, they are lying. Back in the days before the public knew about toxic subprime mortgages issued by criminal bankers and packaged into derivatives given a AAA rating by the greedy compliant rating agencies, the Wall Street cabal knew time was growing short, but that didn’t keep people like John Thain (Merrill Lynch), Dick Fuld (Lehman Brothers), Angelo Mozilo (Countrywide), Kerry Killinger (Washington Mutual), and others from pretending their institutions were healthy and profitable – right up until the day they collapsed. Lying is in the DNA of every financial executive, politician, government bureaucrat, and Federal Reserve hack.
The quote from Hemingway seemed pertinent in 2008 and is just as pertinent today- “‘How did you go Bankrupt?’ Bill asked. ‘Two ways,’ Mike said. ‘Gradually and then suddenly.'” – Ernest Hemingway
