After the abrupt closure and failure of Silicon Valley Bank, along with Signature Bank, some worried about history repeating itself. But Treasury Secretary Janet Yellen doesn't think that 2023 is a 2008 redux.
One key driver of the Great Recession was mortgage lenders' willingness to lend to potential homebuyers, even those who might not necessarily be financially equipped to pay off those homes. That meant they lent out what's calledto wannabe homebuyers with lower credit, helping set off rapidly rising home prices and a housing bubble — and setting up the new homeowners to not be able to make their mortgage payments.
"To this day I always argue with people, the problem was the housing bubble. The financial crisis made it worse, no doubt about it," Baker added."But the real problem was that the housing market was driving the economy — a housing bubble, and it collapsed, and there was no easy replacement for that. It's not that story at all."
And this is the same loser that said Inflation is transitory.
What makes her think that we would believe what she said?
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Janet Yellen on bank failures: ‘This is different from 2008’Treasury Secretary Janet Yellen stressed that the ongoing stress in the banking industry is quite different from the 2008 financial meltdown. “This is different from 2008. 2008 was a solvency crisis. Rather, what we’re seeing are contagious bank runs.” I did my part by pulling out all my money from the bank! LOL but it’s actually a solvency crisis That’s hilarious. This time it’s simply gross mismanagement
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Yellen says bank situation stabilizing, different from 2008The government is now determined to restore public confidence in the banking system and to prevent any more turmoil.
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Yellen defends government intervention to avoid another SVBAccording to the Treasury Secretary, the intervention was also aimed at preserving the “important role” of small to mid-size lenders in the U.S economy. U.S. regulators began swiftly working on a plan following the banking crisis, during which Yellen initially said no bailout would be necessary. Instead, the regulators guaranteed insured and uninsured deposits at both SVB and Signature. This basically is the signal to every bank in the US to do the most risky stuff in order to make money. If think turn bad the government will cover it anyways. Why should Bank do more risk prevention now?🤷🏼♂️ syntrum is a decentralized,open source cryptocurrency with the best in Proof of Stake protocol.The coin uses master nodes that require 1,000 ePN as collateral. As a result, there are no hyperinflationary risks associated with mining 0xSyntrum nft web3
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Janet Yellen is selling bank crisis short as execs fear dozens more teeter on brinkThe ill-fated Silicon Valley, Signature banks, and today’s latest headache, First Republic, are the festering sores that signal an even greater degree of banking rot. You set a precedence Joe next bank that fails you have to BAIL THEM OUT TOO with OUR TAX DOLLARS of course WE HAVE NOTHING TO FEAR BUT FEAR ITSELF is a phrase from US President Franklin D. Roosevelt’s first inauguration speech March 4, 1933. By March 1933, depositors had seen $140 billion disappear when their banks failed. The Banking Act of 1933 set up FDIC to insure bank deposits.
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