Link: https://mishtalk.com/economics/yellen-said-no-bailout-but-its-a-huge-bailout-of-the-banking-system
Excerpt:
It won’t matter but I am pleased the Journal blasted Bill Ackman and venture investor David Sacks, as “frantic panic spreaders“.
There’s more in the article about how Rohit Chopra, an Elizabeth Warren acolyte on the FDIC board, is hostile to bank mergers on ideological grounds, perhaps preventing a merger.
The Journal speculates how Biden might illegally act to guarantee all deposits or pressure House Speaker Kevin McCarthy.
….
Once again, the Fed kept interest rates too low, too long, encouraged speculation, then bailed out the banks.
Spare me the sap about this was a depositor bailout not a bank bailout.
When you value assets at par so that banks don’t have losses, what the hell is it.
Author(s): Mike Shedlock
Publication Date: 12 Mar 2023
Publication Site: Mish Talk