David Stockman on Washington's Panicked Bailout of Bank Deposits… Here's What Comes Next• https://internationalman.com by David Stockman
Yet that's what the entitled herd on Wall Street is loudly demanding. As usual, they want the stock indexes to start going back up after an extended drought and are using the purported "financial crisis" among smaller banks as the pretext.
Well, no, there isn't any preventable crisis in the small banking sector. As we have demonstrated with respect to SVB and Signature Bank, and these are only the tip of the iceberg, the reckless cowboys who were running these institutions put their uninsured depositors at risk, and both should now be getting their just deserts.
To wit, executive stock options in the sector have plunged or become worthless, and that's exactly the way capitalism is supposed to work. Likewise, on an honest free market their negligent large depositors should be losing their shirts, too.
After all, who ever told the latter that they were guaranteed 100 cents on the dollar by Uncle Sam? So it was their job, not the responsibility of the state, to look out for the safety of their money.