By Nick Givas
Following the failures of Silicon Valley Bank and Signature Bank, the White House is facing increased calls to accept its share of the blame by critics who cite the Biden administration’s high spending and staunch support of an environmental, social and governance (ESG) agenda.
Both banks were criticized for heavily investing in social justice-driven projects, green energy companies, and making hires based on “diversity” instead of merit.
Government spending also played a large part in the mayhem, House Financial Services Committee member Rep. Bryan Steil (R-Wisc.) told Just the News Tuesday.
“Sure, we had bad management of banks, we had a handful of other things — all of that needs to be investigated,” Steil acknowledged in an interview on the John Solomon Reports podcast. “But if we step back and look and say, ‘What’s causing this underlying instability across our economy?’ — it’s roaring inflation, and who’s the culprit of roaring inflation? It was one-party, Democratic control that spent like drunken sailors.
“It’s mismatched energy policy, where the Biden administration wants to have a war on energy. And his labor policies allow far too many people to find themselves on the sidelines” instead of going back to work.
The remedy, Steil argues, is bringing “reckless spending” under control and discontinuing the government’s war on fossil fuels and the American energy sector.
“This is the challenge in front of us, is forcing the president to come to the table,” he said. “In particular, during the period of time of the debt ceiling debate, to actually put the policies in place to slow inflation. Because at the end of the day, that’s the cause of the economic instability. And that’s the cause of the pain of so many families across our country.”
America First Policy Institute’s Mike Faulkender also sees runaway federal spending and inflation as the root cause of the recent string of bank failures.
“When Biden came into office and carried out the massive amount of spending with the American Rescue Plan, we saw inflation start to take off in March of 2021 … it hit more than 9% inflation last year,” he noted. “And the result of that is that the Fed has had to aggressively raise interest rates.”
When interest rates are aggressively hiked due to inflation, massive losses occur, and assets become devalued, Faulkender explained.
“They didn’t have enough capital to absorb those losses, which meant if the federal government did not step in, it meant that depositors were going to start taking losses,” he said Tuesday in a podcast interview on John Solomon Reports. “That’s why those banks failed. It really is just a complete failure of both bank management but also regulator management. The idea that the regulators were not monitoring the interest rate exposure of the banks that they regulate, really is an entire indictment of the whole Dodd Frank regulatory regime.”
Former Treasury Department official Monica Crowley weighed in on the bank collapses in an interview with the John Solomon Reports podcast on Monday, attributing the crisis to Washington’s failure to bring spending back down within a normal range with the waning of the pandemic
If Democrats had not harassed Trump incessantly and had fraud not deposed him, tre economy would still be roaring and there would be peace in Ukraine.
The entire financial fiasco is the fault of biden. Had not inflation reached levels not sent since the 1970’s and had the two year treasury not eclipsed 4%, none of what we are seeing would have happened.
This is totally at the feet of biden.
Biden is a shell, the Fed beotch taking orders from the IMF and WEF this was intentional, they knew how over leveraged big banks were in treasuries to the penny.
Inflation was caused by high gas prices that Tsunami through the supply chain, people are not buying more milk or eggs, they are returning to work and need to gas up. Dont encourage the Gas producers to make more refineries. Pump alot out of the ground but that black goo still needs to be refined.
More are living paycheck to paycheck, dwindling savings if they had any after lockdowns. Too much cash floating in the economy is not the issue as most money printed was given away out of the country. The covid money stolen more fraud than good.
Biden in the Money Bin is like a Fox in the Henhouse
Biden and his Democrats with the Keys to the Money Bin and long list of pork projects