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The United States recently suffered the second-largest bank failure in the country’s history. The consensus view is that Silicon Valley Bank made a huge mistake by borrowing short term and then parking money in long-term bonds. When interest rates rose, assets lost value, and SVB was put in a perilous position.
President Joe Biden promises there will be a «full accounting» of the situation and that everyone will be held «accountable.» But that would mean the president taking responsibility for the reckless governance that helped create the environment that made this possible. The Fed wouldn’t have been compelled to aggressively raise interest rates if Biden had acted more like a responsible statesman rather than a cynical partisan.
Let’s recall that virtually the entire left-wing political infrastructure – media, politicians and expert class – was activated to dismiss the concerns of those who warned that inflation was a threat. The reason was obvious: Democrats wanted to cram through as many long-term spending proposals as possible while they held both houses. That had to be done in two years’ time. And it had to be done with the support of Joe Manchin, a senator who would occasionally feign concern about spending.
In 2021, Biden signed the $2 trillion so-called American Rescue Plan, indiscriminately sending checks to millions even as COVID lockdowns were winding down. This, after issuing a number of presidential edicts limiting affordable fossil fuels. (With some Republican help, Democrats would later pass a $715 billion green «infrastructure» bill.
