In this episode, Patrick Bet-David breaks down the silicon valley bank collapse and explains why this collapse pissed off a lot of people.
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Silicon Valley Bank 16 biggest bank in America with over 200 billion dollars in Assets goes belly up with people making A run on the bank everybody's panicking What's going to happen if this goes on To other Banks one side of the hour send We got to bail them out we can't let Them go now these are billionaires oh Yeah you want to have capitalism for the Rest of us but socialism for the rich This is exactly why Bernie Sanders was Right they're doing the same thing they Did to actually no it's a very different How is it different lots of questions We're going to cover all of that in Today's show [Music] So if you get value from the video give It a thumbs up and subscribe to the Channel to fully understand what's going On with this you have to put a different Lens on to understand different people's Perspective meaning when Benghazi Happened most people have forgotten About Benghazi the only people that are Still thinking about Benghazi on a Regular basis are those who lost a Family member one of the four family Members are thinking about it till today Why because it was a direct impact of Pain to you Silicon Valley Bank there's Different people there those who work For Silicon Valley as an employee well They're going to take a hit those who
Own shares in Silicon Valley Bank they Were owners they're going to take a hit There are those that have 250 000 or Less with Silicon Valley Bank they'll be Protected by FDIC but then there's those That have over 250 000 they're not Protected by the FDIC and then outside Of that you have those who have their Business accounts with them that are Trying to make payroll they don't know How to make payroll next thing you know All these employees at these startups Are sitting there saying how am I going To pay my salary and last but not least They're Outsiders me and you you ain't Got shares I ain't got shares if you Don't we're kind of sitting here saying They should do this and they should do That but you gotta look at it from Different people's lives now having said That let's get right into it so what is The biggest fear of people saying we got To go bail them out and what is the People on this side saying this is just Like AIG here's the difference in 2008 The government bailed out the company AIG in 2023 FDIC is bailing out they're Calling it a backstop they're bailing Out the depositors not the company the Companies being bought out different Divisions of it different people are Buying the UK Division I think was Bought by HSBC for a pound one pound not A billion pounds one pound Apollo is
Buying a loan debt this guy's buying This that guy's behind us and at the Same time they're doing that so the Bailout isn't for the company to still Be around because the CEO the CFO those Guys mismanaged the bank a matter of Fact the CEO he goes to Europe to go get A trip for Bank of the Year award or Something like that while Forbes Magazine calls them one of the best Banks of the year and they retweet it Five days before they go belly up and he Comes back realizes what's going on Takes three and a half million dollars Or so of his stocks and sells then the CMO sells it all these CFO sells it They're selling shares known this Company is going to go bankrupt and They're giving bonuses out 12 days Before the company going bankrupt they Know this is coming that's called front Running the fed's gonna go do something About that the government's going to do Something about that they should be held Accountable but the depositors know now There's some people that say taxpayers Are not going to pay anything for that You're going to be paying for something For that the FDIC doesn't print money to Pay things out and if they do you and I Are still paying for it so no that is Coming from us to pay for that the Problem is the following that's the part That everybody has been thinking about
The FDIC today if you looked at their Balance sheet they have roughly 125 billion dollars in their account 125 Billion dollars if you know how much Money they're trying to insure with that 125 billion dollars you ready 9.9 Trillion dollars of deposits did you Hear me take out 125 billion dollars to Protect 9.9 trillion dollars of deposits So what's the fear if FDIC goes and says We're going to go above the usual 250 And we're going to build these other Depositors out and we're going to take Care of them what becomes a problem if All of a sudden Jerome Powell increases Rates and other Banks can't make their Payments on their bond and there's a run On different banks what happens all of a Sudden the 27 Regional banks that we Have now it's 26 because one of them is SV Bank the 2250 Community Banks that we Have in cities are 50 000 or less Everybody is going to start panicking Saying hey babe we got to take the money Out we got to go to a big Bank let's go To Chase as a matter of fact just in the Last week Jamie dimon CEO of Chase you Know what they did they got nearly two Billion dollars of clients that were With Silicon Valley Bank why because Their Brokers kept calling calling Calling that's capitalism competition That's when the fear becomes from having All these different banks to go into
Five then you and I don't have a lot of Competition we lose that's the people Who are saying that's bail out the Depositors but if they do it once maybe Twice maybe three times they can't do it If this happens to 510 other Banks then They have to go back to printing of Money again which is going back to the Mistakes we made in 08 which is Quantitative easy that's what they're Trying to prevent from happening having Said that where does capitalism get a Black eye a couple different places Crony capitalism which you need policy Officials to help you Monopoly where you Control a production of a product Monopsony which is when you are the Controlling the buyer of a product You're like the only guy that buys a Product and you have control over it I'm The only guy that buys it you can't get The product so you can bully all the Other people that want to get it that's A form of a monopoly then sometimes the Inherited wealth folks are getting yeah Well I can't believe you got your money You didn't have to earn four you don't Have to do this it doesn't matter their Parents worked hard and they want to Pass it down to their kids you ought to Do the same to pass the money to your Kids as well there's nothing wrong with That but there's one part that deserves Criticism and here's where it is the
Four Foundation of capitalism this is What it is it's a freedom to buy freedom To sell freedom to try and freedom to Fail there are crybaby capitalists who Want to take the risk to make a lot of Money but they don't want to fail you Can't do that so you want to put all Your money into this investment or a Opportunity and you wanted to go to Whatever the amount is but if all of a Sudden God forbid hits the fan you Want to make sure the government comes And bails you up those capitalists I Call the crybaby capitalist those are The ones that that make the other Capitalists who do it the right way get Criticism FYI this isn't only in a place Like this this happens to a lot of Different people the same way O.J Simpson got a lot of hate when people Said we all know this guy's guilty a lot Of people in America think he was guilty How the hell does this happen it's just Because he's a celebrity some people Will write it happened because he was a Celebrity some people may say he could Afford better attorneys some people say If it was an average person who did this You know he'd be going to jail for Life How can this happen to OJ these are all Valid questions to be asking but when an Event like this happens with Silicon Valley Bank rather than jumping out There and saying let's do another Occupy
Wall Street Chapel is suck billionaire Suck For every one stupid thing a capitalist Does they've done 99 other things such As the platform you're holding your hand In right now to watch this video your Phone and the service and the company With the phone and all the other stuff All of that was started by capitalist All the equipment here was started by Capitalists there's a lot of good Capitalists do but every once in a while They do horrible things just like Everybody else that doesn't mean we Should judge them as all the other 99 of Capitalists that do the right thing if You got value from this video give it a Thumbs up and subscribe to the channel I Also did a video I think five years ago Titled 10 reasons why I love capitalism If you've never seen it click here to Watch it take care everybody bye-bye Foreign
