As the Biden Administration continues to push for more wild spending and government-funded projects, it has become increasingly clear that the consequences of these reckless policies will be felt by everyday Americans.
Former FDIC chair William Isaac warned this week that we are likely to see more bank closures due to inflation caused by the government’s irresponsible fiscal policies. The FDIC recently shut down Silicon Valley Bank and Signature Bank after their stock prices plummeted and customers began a bank run.
Isaac noted that the number of bank failures this time around is likely to be much smaller than it was in the 1970s, when the US saw the closure of around 5,000 banks due to irresponsible fiscal and monetary policies.
“The government has had irresponsible fiscal policies for 20 years and pretty irresponsible Fed policy … for the same period until recently,” Isaac said. “We have to get the monetary policy in line with where it needs to be. If we do those things, we can get out of this with minimal damage.”
Unfortunately, the Biden Administration has made it clear that they are unwilling to take responsibility for their fiscal policies and the damage they are causing. The government continues to push for more spending, even as other banks such as Credit Suisse and First Republic are seeing their stock prices plummet.
It’s time for the Biden Administration to wake up and realize that their irresponsible spending habits are leading to inflation and more bank closures. The government needs to take responsibility for their actions and make sure that their policies do not lead to more economic hardship for everyday Americans. Otherwise, we could be facing a financial crisis similar to what we saw in the 1970s.
“I do think there’s probably going to be more failures along the way. The problem we have is the same one that we had back in 1970s when the government was out of control with its fiscal policies, its monetary policies, inflation set in and banks were just not ready for that,” William Isaac, who chaired the FDIC during the Reagan administration, told Fox News host Neil Cavuto. “The thrifts were not, either. We wound up losing some 5,000 banks during that period.”
You heard him right. This administration’s insane spending has driven us all back to the 1970s- or close to it. That’s Carter’s territory and no one but the rich thrived under Carter.
