It would seem obvious that after the 2008 financial crisis, we might have learned a lesson or two.
But we didn’t.
So now, one of the biggest banks in America has collapsed, and it’s all too reminiscent of the past. The question is: How did it happen?
Glenn explains that what’s going on is “a giant shell game” caused by the Fed by raising the rates. He continues, “But if you don’t raise the rates, what happens? Inflation goes out of control. Why? Because we have printed and loaned too much money out.”
So, can you pull it back?
“The way you pull it back in is raising interest rates. If you raise the interest rates, bonds have to pay a higher yield. So, when you buy a bond, you get more money back. And if somebody gets into trouble, they have to sell their bonds exactly like Silicon Valley, and they have to take a haircut — and then the entire thing collapses.”
The most worrisome thing is that it all seems to be done on purpose. How do you make such a colossal, world-bending mistake — over and over again — if it’s not what you have planned?
Glenn says, “This is what the Fed has set out to do. They want to see risky things go away. They want to see failure. They need people who are not stable to go out of business. Stop spending money so we can suck all that money back in.”
He continues, “But when they do collapse it and our economy is in this kind of shape, you then have a domino effect because nobody’s in great shape, and the banks are playing a giant game. So, then people can’t pay the paycheck and then that paycheck fall causes you to default on your auto loan or your house loan and that makes another bank fail.”
What’s going on is that not only are we repeating the 2008 financial crisis, we’ve made the problem much bigger.
Which is obviously terrifying, but Glenn has some advice.
“Work on your spiritual health. Because this is coming, at some point.”
Glenn explains: THIS is how Silicon Valley Bank COLLAPSED
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