In hindsight, it is most plausible that the collapse of SVB and crypto was a stealth execution by bank executives and federal reserve bank regulators for the purpose of gaining enough control over the banking system to implement Biden’s new socialist home loan rules that rewards bad credit as it punishes good credit, depreciate crypto out of the market, render banks much more dependent on the federal reserve for their solvency. Otherwise you believe that well capable financial experts all tripped over the same financial boulder simultaneously.
The banks in aggregate according to the FDIC on March 12th were holding on to $620 billion of unrealized losses in old treasury bonds. Not a week after the FDIC opened their federal discount window, the “Term Bank Funding Program”, did the Federal Home Loan Bank blow up from handling $3 billion of last resort bank loans to $304 billion. This, as a result of banks across the country transferring high risk mortgage loans to this 11 bank system. This one week operation places many more banks across the country completely dependent on the federal government for their solvency, and in turn, obligated to follow whatever rules the Biden administration controls the management of private credit through the federal reserve.
Millennials define the direction of the US economy in their buying, saving, and investing decisions. Investopedia cites that ” More millennials are renters than homeowners by far. Additionally, 18% of millennial renters say they plan to rent forever. That’s the highest percentage of any generation.”. They go on to describe that “At age 30, 42% of millennials own homes, compared with 48% of Gen Xers and 51% of baby boomers when they were 30.”.
The Silicon Valley Bank collapse caused a period of lending tightening as National Association of Home Builders chief economist Robert Dietz observed that the tightening lending environment likely to emerge in the aftermath of the Silicon Valley Bank collapse is a concern for private firms relying on capital from regional and community banks.