Staff Reports
The banking crisis that has recently taken the US by storm is a clear result of the disastrous inflationary policies of the Biden administration. The administration’s spending has been highly risky and has forced the Fed to hike up interest rates in an attempt to combat the overheated economy, which has directly contributed to unpleasant externalities such as the collapse of Silicon Valley and Signature banks. This is no surprise considering that the administration was warned about the consequences of its actions, yet chose to ignore the warnings and even pretended that they never existed.
Here is what Core CPI looks like, it has increased for three straight months. pic.twitter.com/IqLwaBQIym
— Jason Furman (@jasonfurman) March 14, 2023
The inflation problem remains an extremely painful and stubborn issue that seems to be untamed. The Fed’s decision to slow rate increases could reduce pressure on the banking sector at the moment, but the root of the problem lies in inflation. Even core inflation has been trending in the wrong direction for several months, proving that we are in for a long ride.
. @jbarro mentioned it earlier but "Biden spent too much, there was inflation, and now high interest rates are creating unexpected problems" seems like a pretty straightforward critique that we were not hearing a lot over the weekend https://t.co/xRk9WHwW0r
— Benjy Sarlin (@BenjySarlin) March 14, 2023
Blame Game: Biden blames Trump for Silicon Valley Bank failure@guypbenson reacts on #SpecialReport #FoxNews #SVB #SVBCollapse #Trump #Biden pic.twitter.com/YbArydrZmY
— The Guy Benson Show (@GuyBensonShow) March 15, 2023
Tom Carper says he doesn’t regret voting for 2018 bank deregulation bill. He called for hearings into SVB collapse.
“Standing here right this moment, no. We should find out what went wrong, why did it go wrong, how do we fix it, how do we make sure it doesn’t happen again.”
— Igor Bobic (@igorbobic) March 14, 2023
“The reason why I voted for that bill is that my community banks really needed it,” Kaine said
— Igor Bobic (@igorbobic) March 14, 2023
https://t.co/bwuwE6tkB0 pic.twitter.com/HNpGRfIHP5
— Bonchie (@bonchieredstate) March 12, 2023
Reminder: The Banking Mess Is Another Consequence of Biden's High Inflation https://t.co/uDjDpKqcPZ
— John Nantz (@TheJohnNantz) March 17, 2023
The Biden administration’s blame-shifting response to the collapse of Silicon Valley and Signature banks by blaming Trump-era deregulation is not only typical but shameful. It puts many Democrats who supported those changes in a difficult position since it exposes their own inability to own their decisions.
Former Congressman Barney Frank, who played a significant role in the 2008 financial crisis through his nutty policies relating to mortgage loans, has apparently joined Signature’s board. When questioned about his association with Signature, he said he was disappointed and chagrined that the bank had failed but had no regrets about joining the board. Frank clearly needs the cash since he retired without a pension to be a lobbyist, and he cannot pursue his affordable housing ideas without funding.
Frank’s affordable housing ideas were a major feeder of the 2008 financial catastrophe, which he naturally blames on Bush and the Republicans. But for a guy caught with a brothel being run out of his home, lying about it, and sticking around in Congress for decades, having a sense of shame isn’t really his thing.
It’s high time that the Biden administration takes responsibility for its actions and that those in positions of power own their decisions instead of placing blame elsewhere. It’s evident that the inflationary policies of this administration have contributed to the banking crisis, and it’s time for them to fix the problem while they still can.
