Why Silicon Valley Bank and Signature Bank Folded

Where Is Your Money Safest?

People on social media telling others to make a run on the banks–is exactly how to create hyperinflation and a total catastrophe.

The bailout of Silicon Valley Bank and Signature Bank means they’ve drained 25% of the FDIC’s money, to try to stop a “contagion effect.”

The bailout of Silicon Valley Bank (CA) and Signature Bank (NY) means the rich just got richer, and the poor got poorer. The average depositor at this bank had over $4M in the bank.

We’ve seen many means, the last three years, to make the rich richer, and the poor poorer. Under an administration and political party that used to claim to care about the poor and disenfranchised.

A political party that says WORDS about protecting working Americans, but the actions do not match the words.

You and I pay for FDIC insurance, to bail out a badly run bank, and tech millionaires–rather than letting zombie corporations die, as they should. Most of the NASDAQ and NYSE are zombie companies propped up on debt, with 20:1 to 50:1 debt-to-earnings ratios. I don’t invest in broadly diversified stock funds, consequently.

These companies need to die, and it will be sad when jobs are lost, but it has to happen eventually, and what would be great is if innovation and the free-market system would be allowed to replace the zombie companies.

The depositors at SVB were millionaire Bay Area tech executives and companies, and 97% of the depositors’ holdings were above the $250K FDIC insured limit. They were told that to bank there, ALL their financial services had to be there.

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In essence, this set a trap for them. And a monopoly, which violates the spirit, at least, of multiple laws.

This guy had a lot of time on his hands, and called out the crash of FTX, Silicon Valley Bank, and Signature Bank–before they happened!

In fact, he thinks it was an elaborate trap. The failure of all three may actually “clean up” the space, for the big banks to get involved in crypto.

The founder of Signature Bank claims that his bank was closed by regulators, because they don’t like that the bank got involved with crypto. Ironically he (Barney Frank) was also once a legislator, and a regulator, and was co-sponsor of the Dodd Frank Act of 2010 that makes it legal for banks to use depositor money to bail themselves in.

While a few big banks just announced their entry to the space, I want to reiterate that SELF CUSTODY of Bitcoin is how you actually own it, and aren’t vulnerable to counter-party risk. You do that owning a cold wallet, and storing your Bitcoin there.

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While I want nothing to do with fueling a run on the banks, I've been saying for three years that you should have some cash.

When I went to the bank in March 2020, I thought there would be a line out the door and down the block.

Imagine my surprise when I was the only customer there. I guess everyone else thought that canceling economies all over the world indefinitely was NBD?

Or did they believe the "two weeks to flatten the curve" baloney?

Hey, maybe I’m the dumb one! Maybe everyone assumed that the money printer would go into hyperdrive and the helicopter would rain money down on everyone, individuals and companies, to keep us all solvent, a while longer.

Problem is, people STILL apparently think this. Because 40% of us have maxed our credit cards, and savings are at an all-time low. (Perhaps because savers are being punished? By high inflation. Created by the Fed, and now we have the amazing belief that the Fed can solve the problem they created in the first place. While Elizabeth Warren tells you that companies are “gouging” people, with higher prices, inflation was created by the Fed, and companies raise their prices because their loans are more expensive and their cost of goods went up!)

Your money is likely fine in the big banks. And the banks who invested responsibly. (Your money isn’t really yours, in a bank–you’re LOANING money to the bank, and they invest it.) “Too big to fail” may not last forever, but I’m not trying to get out of Wells Fargo.

I do think the money printer will rev up again–but people and banks keep doing irresponsible things, believing that this can go on forever.

I keep cash on hand, but the cash you liquidate is losing 10% to 20% of its value every year.

(CPI, the “consumer price index,” sometimes called the CPLie, currently says we have 7% to 8% inflation annually–but we can all see that's a fake number. Food prices have just gone up, up, up–

–and inflation on food is the worst “regressive” tax there is–punishing the poor. But the Fed actually loves inflation, because many people don’t understand it’s not the companies’ fault they have to raise prices.)

A run on the bank is what ultimately crashed Silicon Valley Bank. And complex economic conditions, money lent at a low interest rate, with rising interest rates–contributed to a bank being harder to keep solvent, as well.

Credit Suisse, with $1.4 TRILLION in holdings, was set to collapse on March 15. And the central bank of Switzerland bailed them out, with over $50B. That’s just kicking the can down the road. Sending good money after bad money.

If you have over $250K in one bank, you get only $250K FDIC insurance per depositor, in the U.S.

And while I prefer supporting independent regional banks, their stocks tanked, while big banks' stocks soared, after the first three banks failed.

And all of this is just short-term outrunning the steamroller, because my theory is that the globalists of “the great reset” want all the fiat currencies to collapse, basically in tandem, to get us to accept CBDC and full digital bondage.

If I’m right, it’s high time to learn about good hedges against the dollar! To retain what you’ve worked your whole life for.

I know Catherine Austin Fitts says to put your money in an independent bank.

But consider, against that, the fact that the FDIC prioritizes "systemically significant banks." The big ones. 

I hate the consolidation of every industry, too. But, your money is likely safer in the big ones, where any failure would have a massive domino effect.

For the foreseeable future, the government will backstop the big ones. I’m sorry to say that my business still operates from Wells Fargo, though I’m personally diversified into two credit unions as well.

I think we will see regional banks failing and being nationalized in some way, and/or taken over by the larger banks.

Klaus Schwab’s “public-private partnership” is, in my view, socialization of all the big companies, while the big companies have been swallowing up the small ones, or driving them under, for a long time.

Definitely join the Mastermind, get your free month, use the coupon code ROBYN for another $50 off, going on right now only–and watch the gold and silver class ASAP!

My gold/silver broker I talk about in the class texted me that he’s selling millions in gold, daily, and when the price gets past $2,000, it will likely see historic gains.

Bitcoin’s on the rise, and our Mastermind classes will tell you what you need to know there, too.

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