Treasury Secretary Janet Yellen appeared before the Senate Finance Committee to discuss the Biden 2024 Budget proposal on Thursday.
Republican Senators hammered Yellen on the Silicon Valley Bank failure. Yellen admitted during a line of questioning by Idaho Republican Senator Mike Crapo that inflation rates have caused the banking crisis.
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She can be quoted as saying…
My understanding is that the bank, to meet liquidity needs had to sell assets that it expected to hold to maturity and given that the interest rate increases that have occurred since those assets, including treasuries – and government-backed – mortgage-backed securities they had lost market valueJanet Yellen
See a clip of that moment below…
.@MikeCrapo asks if SVB had a liquidity risk issue.@SecYellen: "Well, there was a run on the bank. It had high reliance on uninsured deposits and there was a massive withdrawal of deposits that led to liquidity problems. The bank had to be closed for that reason." pic.twitter.com/G3WCoRghxV— CSPAN (@cspan) March 16, 2023
Inflation has risen drastically since Biden entered the White House. We now know, directly from his Administration, that it was sky high inflation that caused the bank failures.
Eventually, with sky high interest, banks begin to fail. It was inaction from the Biden Administration that caused these bank failures to happen.
No serious Administration would allow for inflation to run rampant as the Biden has. It should have been addressed years ago.
Now that the consequences are starting to show themselves, Biden is busy working with his team to bailout the wealthy account holders at the Silicon Valley Bank. The same account holders who used their Silicon Valley platforms to censor political opposition to Biden in 2020, and 2022.
The Biden Administration is nothing more than a revolving door of corruption. Constantly slithering their way through the swamp of politics.