insolvent was because of gt. the government, the federal reserve kept interest rates at zero for 12 years.s, quantitative easing. time and during that time, banks had pretty much everybody else loaded up on low yielding debt . but inha ordert leve to keep in rates that low, the federal reserve had to create massivee inflatio inflation. they called it quantitativn.eeqs easing, and the adverse really r show up last yeally started to shoeaw up last year when wegv had these big elevated inflation was he cpi. and so inflation was becoming such a burden on americans thatn the fed was forced inttoo taking action. and so it raised interest ratesu and tricked the bubble that inflated. are and now all these institutions are insolvent at higher interestrest rates. we have a bigger debt crisishave now than the one we had,which wo a thousand eight , which was also caused by the artificiallbg low interest rates that followed the bursting of the nasdaq bubble . en the fwhen the fed kept inter. rates
depresident biden said thatthesu nobody is going to have to payts for these bailouts, , he s wron. we re all going to pay through inflation because the federal reserve is financing it by printing money. and so the price of everything is going to go uisp. and in fact, bank deposits are more at risk now than ever before. re because inflation is because to destroy the value of everybody s savings.y s savings. peter , on that note, thank youn for joining us .o a all right. the democrats reaction to aru protntial run onn the banks isnt a lobby for more consumer protections, but more socials ae media censorship. the details and reaction st with steven miller and monica ephecrowley in a moment. stader just an actor who films the hit tv show empire here in chicago. told police he s the victim of a hate crime. i ve been truthful and consistent on every single level since day one . let me paint picture for you. those folks aren t going out at 2:00 in the morning on the cold
nine o clock in the morning. and shes ie said on him being h a night owl. but there are all of theseearly. stories saying now goes to bed early. so, i mean, wewe have have a pe president who s in the process of deliberately destroying the unitedis i states of americ. stephen is right. deli we have been making this pointr. a long time. if t if thihis all weren t deliberate from the take down of the u.s.,s economy, the wide open borderndc cities and collapse skollay hig- inflation, sky high crime rates, he would have changed ha. course by now. and he has said so again, they have set this country on at trajectory of absolute and utter ruiner to stephen sa point about equity and his executive order shootingacuity us through the entire united states government. all of the executive branc to ah offices. this is cultural and economicra ecmarxist. there is no other way of putting it. woke esg, all of these things, social justice there, all euphemisms for culturalcuis and economic marxism.
but this time zero percentiggerh inflated a much bigger bubble , which is why we re now having a much bigger financial crisis. buthatt none of this would have happened had we stayed with a free market. the free marke the free market would havefrom e purged the economy from all these excesses a long time ago. and instead of having a bubble, we would have had a genuineveryr recovery with real prosperity instead of the phony prosperitos iny that we ve enjoyed.e and now the chickens have come home to roost. all right.s is rejecting larry summers is rejecting this idea that interes interests are behind this. watch us . these problems had much more to do with the failure of risk at i management at silicon valley bank. i also think that if we didn td operate to contain inflation, we would have even highers. interest rates. and those even higher interestsl rates would make more financial problems, not less.
to believe that this is a and one off and you have this under control, you have to believe that three years of massive fiscal policy spending thaten we ve never seen beforea limite will have only a limited impact on the financial plumbing of the economy and the markets. th absurd.eems absurd. thanks take roscoe banks take risk and all particuls took the type of risk these guys were taking, particularly what short termie liabilities and long term assets mismatch. you put that together. that is that is it. that s toxic. toxic indeed.oxic indeed, he s percen he s hundred percent correct. now, this isn t two thousand thu eight , at least not yet.singly on the housing bubble burst it completely. it s a bailout triggered by risky moves by the bank.epos the depositors precipitated by the biden team s refusal to deal with inflation back in early twenty , twenty one . instead, what they did is they spent spent tril of dollars, printed people wrove up inflation.