March 11, 2023 - Bannon's War Room
47:49
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| Speaker | Time | Text |
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| This is what you're fighting for. | ||
| I mean, every day you're out there. | ||
| What they're doing is blowing people off. | ||
| If you continue to look the other way and shut up, then the oppressors, the authoritarians get total control and total power. | ||
| Because this is just like in Arizona. | ||
| This is just like in Georgia. It's another element that backs them into a quarter and shows their lies and misrepresentations. | ||
| This is why this audience is going to have to get engaged. | ||
| As we've told you, this is the fight. | ||
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All this nonsense, all this spin, they can't handle the truth. | |
| War Room. Battleground. | ||
| Here's your host, Stephen K. Bannon. | ||
| It's Friday, 10 March, Year of Our Lord, 2023. | ||
| What a day. | ||
| The 16th biggest bank in the country. | ||
| The center of the financial system in Silicon Valley. | ||
| The second biggest bank failure in the nation's history. | ||
| The only bigger bank failed during the financial crisis of 2008. | ||
| $169 billion of non-secured deposits. | ||
| They're talking about they can't make payroll next week. | ||
| If they can't get this thing picked up by one of the banks over the weekend, they're going to be looking for a bailout. | ||
| Bill Ackman's already said he strongly recommends a bailout. | ||
| This thing is an unmitigated disaster. | ||
| It is a direct result, a direct result of Biden's radical economic policies, unrealized losses in his securities. | ||
| These are government securities, right? | ||
| Government securities. Losses in government securities. | ||
| $17 billion, as Peter Navarro said last week. | ||
| Last hour, over $600 billion of unrealized losses on government securities on the balance sheets of banks throughout the country. | ||
| First Republic Bank also trending to all the problems that Silicon Valley Bank had but can't Tell you enough how important this is, how big a deal this is. | ||
| Matt Gates joined us last hour, Peter Navarro. | ||
| As the venture capitalist, Mr. | ||
| Juan said, this is an extinction-level event for startup companies. | ||
| He counts at least 1,000 startup companies. | ||
| He says the creme de la creme. | ||
| Silicon Valley Bank did have a premier corporate client list. | ||
| The extinction-level event, if payrolls don't start to be made, and he said that it will impact and actually take away dramatically from American innovation over the next 10 years. | ||
| I want to bring in Natalie Winters. | ||
| Natalie, I want to go to the other massive news today, 419. | ||
| You talk about something that can bring people together? | ||
| 419 to zero. | ||
| The House voted to direct the Director of National Intelligence to turn over all I mean all information and intelligence about COVID-19. | ||
| I'm going to get into that with you in a minute, but I've got to ask about the fascinating interview just did with Dr. | ||
| Malone. He said something that kind of chilled me to the bones. | ||
| And one of the reasons I thought about it and struck me is that Matt Gaetz just made the argument in the last hour. | ||
| He said, hey... You're going to see next week not just the pressure come from the tech community and the startup community. | ||
| It's going to come from DOD and the intelligence agencies that say, hey, a lot of these startups are ours. | ||
| This is about national security. | ||
| We're going to fall farther behind the Chinese Communist Party. | ||
| Then you just had Robert Malone say, when Fauci talks, and particularly when he testifies, he sounds like an intelligence officer. | ||
| Tell me about that. You've done more to track Fauci. | ||
| and his lies and misrepresentations than anybody. | ||
| What did Malone mean by that? | ||
| Yeah, I always joke that I'm the only American on the Faro website, the only American on the Wuhan Institute of Virology website, and someone who's probably consumed every single second of testimony, not just from these congressional hearings, but also from Anthony Fauci and his lackeys, the Peter Daszak's of the world. | ||
| And it's very, very interesting. | ||
| As someone who pays very close attention to the diction and syntax that Anthony Fauci uses, When he gets backed into a corner, which you can sort of see in that Fox clip, you certainly see in his exchange with Rand Paul, and you see it come out again when he's pressed, when he has to defend, really, frankly, the indefensible, which is, of course, that he funded gain-of-function research. | ||
| He really starts to use the same words, the same adverbs. | ||
| He loves the term unequivocally. | ||
| He loves to really double down. | ||
| And all the statements that he makes are sort of redundant. | ||
| So I think on just the psychological aspect, it really is interesting to understand Anthony Fauci as a person. | ||
| But I think what Dr. | ||
| Malone said... What really gets to the heart of the issue is that it's not just about NIH funding money through EcoHealth Alliance to one Chinese Communist Party-funded lab. | ||
| It's about a network of labs that are run by the Chinese Communist Party, more precisely the People's Liberation Army. | ||
| But on the American side, it's not just about the NIH. It's really about the entire federal government, all the way to the DOD particularly, I think that's the most concerning, but also the USAID. And I think EcoHealth Alliance is a perfect example. | ||
| They received $40 million in funds from the Department of Defense just in the last few years alone. | ||
| And if you really get into the weeds about what these grants are for, what they constitute, they're always in the name of either pandemic prevention. | ||
| In some cases, it's biological weapons of mass destruction. | ||
| In some cases, it's actually weapons of mass destruction that they're supposed to combat. | ||
| And I think it sort of begs the question, which is what Dr. | ||
| Malone was saying, Are we actually engaging in biodefense research or is it biowarfare research? | ||
| Because it seems certainly curious to want to conduct research into how to counter biological warfare attacks with the Chinese Communist Party, who I would argue if anyone is going to wage biological warfare on the United States following their doctrine of unrestricted and unconventional warfare, It would be the Chinese Communist Party. | ||
| So it's sort of like giving them the keys to the castle, rather, and really allowing them to sort of reverse-engineer what the United States' response to a biological warfare attack would be. | ||
| So that's why I think it goes to the question that I asked him, right? | ||
| Is it incompetence or malice? | ||
| And it can't just be incompetence. | ||
| There is a level of nefarious activity going on, which, of course, power corrupts. | ||
| And absolute power in the hands of bureaucrats like Anthony Fauci absolutely, and as Anthony Fauci would say, unequivocally corrupts. | ||
| One of the things I still can't get my mind around in this is the, you know, I realize I can see how they would work together and fund this because they think that, you know, science is the temple and we're the unwashed masses. | ||
| What I have a hard time understanding is, given the Chinese press, the Chinese push to do this, and really making an all-out press to go from Level 3 labs to Level 4 labs, and the big gap between that, | ||
| how did Fauci, and particularly Dawson and these guys, their cutouts of Representative Barak, How did they ever feel comfortable that there was competence over there actually to manage this process? | ||
| If there were questions enough in the United States, and people got to remember, it was the Obama National Security Council that shut this down because, you know, they saw people publishing research that was from, like, the University of Maryland. | ||
| They go, whoa, whoa, whoa, that's like a commuter college. | ||
| What are we doing here? And they shut that down in a pretty hard shutdown. | ||
| In, what, in 2014. | ||
| How did Fauci and these guys, Barak, ever get comfortable with just the competence level that they could actually manage a P4 lab? | ||
| You remember, when the lab was first opened, the consulate, I think the consulate from Wuhan, one of the guys from the consulate of Wuhan, who was You know, let's say maybe associated as an intelligence officer, brought someone down from the embassy in Beijing, | ||
| and they were so shocked by the unprofessional nature of what happened, they immediately sent a cable back to the State Department, and supposedly I've seen it was shared with NIH and Fauci, etc. | ||
| Just how would they get over just the competence that the Chinese didn't have the technical expertise to manage this process, Natalie? | ||
| To answer to that question, unfortunately, a lot of the evidence in terms of the genomic sequences of the research they were actually engaging in has been disappeared by the Chinese Communist Party. | ||
| But as someone who spent most of my career focusing on Chinese Communist Party foreign influence operations and how they go about targeting what I would call kind of the Achilles heel of America, right? | ||
| Certain elites, they get a lot of ROI for their money because they will sort of I would say, advocate or push for policies that are very advantageous to the Chinese Communist Party. | ||
| And having the CCP be able to engage in high-level bio-warfare that was deemed too dangerous to carry out here in the United States, I think that's a policy that would be particularly advantageous for the People's Liberation Army. | ||
| And I think to answer that question, I mean, use the Wuhan Institute of Virology as an example. | ||
| You know, this is a group that, if you look It's not just about science. | ||
| They have communist youth leagues. | ||
| They hold communist devotion sessions. | ||
| They have a United Front Work Department chapter there, which really is the kind of main hub of Chinese Communist Party foreign influence operations that's been described by Mao Zedong and even the U.S. State Department as sort of a, quote, magic weapon to advance communism, | ||
| to advance the Chinese Communist Party's So I think when you understand that scientific research, even though they like to hold it up as this kind of holy institution, this idea that it's an untouchable concept, scientists, the people like Anthony Fauci, they're not immune from Chinese Communist Party-compromised And I think particularly this is one area that the Chinese Communist Party has really launched in full force to infiltrate the United States. | ||
| When you think about things like the Thousand Talents Initiative, even the Hundred Talents, which is sort of the little sister operation, of which the Wuhan Institute of Virology had programs like that. | ||
| In other words, the Chinese Communist Party looks as science as sort of a conduit and a vehicle to compromise American scientists, and it's no secret, it's no surprise that so many researchers who work for the National Institutes of Health, particularly those hired under the reign of Anthony Fauci, | ||
| I remember they had a, it was a bombshell story two or three years ago, where they had to fire thousands of researchers from the National Institutes of Health because of undisclosed foreign ties, and 94 % of those ties were to the Chinese Communist Party. | ||
| So I think when you try to understand, right, sort of the fog of war, how the NIH, NIAID could be making decisions that are so antithetical to the advancement of America and really only prop up the Chinese Communist Party, I think that's a false pretense to assume that the NIH and NIAID are acting with American interests in mind because I would argue that they're not an entirely American entity given the extent of CCP compromise. | ||
| Now, it surprised me, but I like your thoughts. | ||
| The House today passes a resolution demanding that DNI Admiral Haynes immediately release every and all information intelligence dealing with the COVID-19 virus, the origins thereof. | ||
| But, you know, Democrats, this is 419 to zero. | ||
| You can't get post offices approved 419 to zero. | ||
| What's your sense of what's going on? | ||
| Because there's so many Democrats that have defended this and said people are racist and going after this. | ||
| What has been the sea change as you've been following this? | ||
| And do you think this will have any impact? | ||
| Do you think this will have any teeth on it that forces Admiral Haynes to actually cough up all the intelligence that's out there? | ||
| Well, I think Joe Biden's response to the passage of the bill was very interesting. | ||
| He said he hadn't decided yet if he would sign it into law, which I think is probably no surprise to anyone in the war room posse given the extent of CCP compromise on that family's hands. | ||
| But I think it's interesting because I think you're sort of starting to see two narratives unroll with regard to the origins of COVID under the umbrella of the lab leak. | ||
| One is more of an indictment of the Chinese Communist Party, and the other is more of an indictment of American intelligence services and American scientific institutions like the National Institutes of Health. | ||
| And while those theories are not necessarily mutually exclusive, I think the intel community, the elites, the powers that be, are a lot more cagey. | ||
| It's a very sensitive nerve to implicate the National Institutes of Health in the US federal government. | ||
| In the origins of COVID, I think they would prefer to sell the Chinese Communist Party down the river first. | ||
| So I think that's just what we need to be careful with the development of this narrative. | ||
| COVID-19 was something that was birthed entirely by the Chinese Communist Party, because I think it's important to understand, even not just in regard to COVID, but in regard to just the general chaos that is inflicted on average everyday Americans. | ||
| It's the American establishment working in collaboration, in cahoots, with the Chinese Communist Party. | ||
| So even if we take down the CCP, which is great and we should, their American collaborators need to go too. | ||
| So I think that's sort of why you're seeing a bit of a sea change, I would argue, in terms of just whether it's the DOE leak, the interview with Chris Wray. | ||
| They're very eager to sell out the Chinese Communist Party, which is a behavior you don't typically see from that ilk of, you know, DC bureaucrat. | ||
| So I think just really watch the narrative sort of shift to totally indict the Chinese Communist Party. | ||
| But don't forget that Anthony Fauci, NIH, NIAID, DOD, all these three-letter agencies were intimately involved with the creation of COVID-19 too. | ||
| I'm going to answer in a second about your take on the response in the mainstream media to Redfield's revelations, which to me were shocking. | ||
| But there's one thing I hadn't had a chance to talk to you about. | ||
| He dropped a bombshell yesterday that I think is the first time in sworn testimony, a testimony I've ever seen. | ||
| I've heard this from people. | ||
| I've seen kind of documents from people, but I've never seen it officially before. | ||
| And it went unchallenged, if I remember correctly. | ||
| He said yesterday in talking about the timeline, He said about Fauci, about what they knew in the conference calls, he said, we know for a fact that it wasn't in January in 2020, it wasn't even late December, that they were actually cases in Wuhan, demonstrable cases, as early as September, in September 19, and maybe even before then. | ||
| I understand the military games and all that. | ||
| Had you heard before where anybody officially actually put it into the record that there was actual traceable COVID cases as early as September 19 in Wuhan, ma'am? | ||
| I don't think that that's ever been submitted to the congressional record, but I think it validates a lot of reporting that we've done at the War Room and other outlets in terms of The early days of COVID-19, because a lot of people who were very, very publicly opposed to the lab leak, people like Peter Daszak, another individual, a name that we should all know is a guy named James Laduck. | ||
| He runs the Galveston National Laboratory. | ||
| They were in a very, very, very deep memorandum of understanding with the Wuhan Institute of Virology since 2018, where they would work on very dangerous pathogens, their words. | ||
| Not mine. They even had stipulations in the contract where the Wuhan Institute of Virology could erase or discard Any evidence of what they were doing, any pathogens they were working with, any documentation. | ||
| But this is one of the people who, again, this was all obtained through Freedom of Information Act requests, but someone who around that time period said, you know, I have my sources in China who are telling me that COVID-19 or that there's this new SARS-like virus that's spreading. | ||
| So I think it's really interesting to contrast what Dr. | ||
| Redfield said, right, how these people knew privately that this new novel coronavirus was spreading a lot earlier than the public was ever told, but yet these people were obviously very, very, very loud detractors of the lab leak theory. | ||
| But remember, the anti-lab leak kind of brigade, right, the Peter Dorschachs of the world, like the Anthony Fauci contingent, That whole narrative was really weaponized in the political sense to go against Donald Trump for shutting down travel from China, right? Because they were saying, oh, that's racist. | ||
| You're blaming the Chinese Communist Party when this was just, you know, a natural event. | ||
| It was just because of the bat soup in the wet market. | ||
| So that's why I think it's particularly nefarious, the cover-up of the date in terms of the early cases of COVID-19, because that narrative, if you play it out to its political implications, was really used to attack President Donald Trump for wanting to shut down travel from China, which really seems to be The only logical conclusion to a novel outbreak of any virus, let alone people who knew it was spreading months prior. | ||
| So again, it goes back to, I think, the question of, is it incompetence or malice? | ||
| And through little snippets, little buried leads like Dr. | ||
| Redfield, and of course, old Freedom of Information Act requests, I really think you get the evidence as malice and not incompetence. | ||
| You know, they didn't ask the following questions, but what's so stunning, because if there are demonstrable cases we can actually prove and bring forward in September 19, that totally rips the narrative of the CCP apart. | ||
| They say that it was late December. | ||
| It was around New Year's Eve, December. | ||
| It was the doctor that eventually, you know, gave his life in going back and working with his patients. | ||
| They didn't really report anything. | ||
| Until WHO, until the first week of January, we know that. | ||
| That's been trashful. | ||
| And WHO came out with the tweet, no human transmission, no community spread, which we know is a lie. | ||
| But if it can be proved in September, that totally tears apart the CCP's narrative. | ||
| That's why it's so incredibly explosive. | ||
| And it just shows you that We're at the very beginning of, I think, which will be an investigation that will be the most shocking investigation in American history. | ||
| And then when you tie in everything dealing with the vaccine, what has been the response? | ||
| I know we've been all over it because you've really led the way here for the last couple of years over with Rahim at National Polls. | ||
| But what has been the general response to the mainstream media? | ||
| What's your assessment of how this explosive testimony—I mean, Fauci came out right away, obviously, and called him a liar. | ||
| But what has been—and by the way, did it on Neil Cavuto on Fox. | ||
| And, you know, I haven't had a chance to talk to you about this, but I didn't think Cavuto did a good job of pushing back on Fauci. | ||
| But what's been the general response to the mainstream media? | ||
| Of course Cavuto didn't. | ||
| He just sort of nods along and thinks his hard-hitting question is, well, do you ever make mistakes? | ||
| I could give you a list of probably a thousand mistakes that Anthony Fauci has made, and I would love to see him have to answer for every single one. | ||
| But, of course, the mainstream media is doing what they always do when it comes to their dearly beloved Anthony Fauci. | ||
| But I do think, you know, I think we're used to the mainstream media outlets burying certain news stories, right? | ||
| That's sort of a given. | ||
| It comes with the territory. But this really is a, I hate using the term Orwellian because I think it's so cliche, but I really think it is a proper application of the term in this case. | ||
| Because if you even search Redfield, if you search COVID, if you search, you know, origins, It's like Dr. | ||
| Redfield was yelling in a forest with no one around. | ||
| They didn't even cover it. | ||
| They didn't even cover the story to smear him as crazy, right? | ||
| The fact checkers didn't even come out to discredit what he was saying. | ||
| It was like what he said didn't even happen. | ||
| And I think, again, this goes, I know Darren Beattie said on today's morning show, that, you know, January 6th is really the most kind of sensitive nerve of the intelligence communities of the, in this case, I would argue it's the Biomedical, the pharmaceutical industrial complex, | ||
| but I think that it sort of goes to that theory of the case, that they really, really, really do not want to get, I would say, pushed in the direction of having to have a conversation about how various three-letter agencies within the U.S. federal government were involved in the creation of COVID-19. | ||
| Again, Dr. | ||
| Redfield should have been on primetime, you know, every single show. | ||
| Certainly should have been on all the morning shows today. | ||
| But like I said, it's as if he didn't say anything. | ||
| But contrast that, just real quick, with the media response that the Department of Energy story got, right? | ||
| That which, of course, said that the lab leak Not intentional, but just sort of, I would say, lab leak light, right? | ||
| The idea that, oh, the Wuhan Institute of Virology, someone maybe got cut and then they went home and they didn't wash their hands properly. | ||
| That theory is a lot less of a severe indictment of the National Institutes of Health and Anthony Fauci and the American government. | ||
| But even that story got its primetime coverage on every mainstream news outlet. | ||
| It really broke the news cycle. | ||
| What Dr. Redfield said, again, former CDC director, very influential position, got basically no time. | ||
| So I think that is, again, the other evidence that I sort of told you about under the umbrella term of the lab leak theory, how you have the two competing schools. | ||
| The one is to sell the CCP down the river, and the other is to indict the Fauci's and NIH's of the world. | ||
| By the way, and of course, when the mainstream media covered the Department of Energy from the National Weapons Labs, they go low confidence. | ||
| It was low confidence. | ||
| Last thing, you've done more probably than anybody of looking at the influence peddling of the CCP and the involvement in every aspect of American life, from the financial to the university to the cultural to the political to the scientific. | ||
| We're here at 6.30, 6.25 Eastern Time on Friday night. | ||
| They're already putting up on the business channels talking about the potential bailout of Silicon Valley Bank and that, hey, if we don't act as a bunch of Chinese startups or startups with American investors, with Chinese as our area of cooperation, this is where we make sure we don't unplug. | ||
| from the Chinese economy and the Chinese people. | ||
| What's your assessment? Is Silicon Valley Bank going to find out that a third of their assets have been lent to CCP companies? | ||
| I can tell you Sequoia and many of the venture capital firms are just front organizations for the CCP right now. | ||
| What's your sense of how big... | ||
| Gates says it's going to be national security and the CIA, and they're going to say you've got to step in here and bail this thing out because of that. | ||
| How big a role do you think we're going to find that Chinese technology companies, Chinese social media companies have payroll, have money, have deposits, or have relationships with the venture capitalists at Silicon Valley Bank, ma'am? | ||
| Well, I think a third is a very, very low-ball estimate. | ||
| Again, you noted that a lot of my focus has been on Chinese Communist Party influence and infiltration, and I'm, of course, eternally envious that you have been sanctioned by the Chinese Communist Party, and I have not, but I'm working to change that. | ||
| One day, one day. | ||
| Perform 25, that's my goal. | ||
| But, I mean, Sequoia Capital is a perfect example. | ||
| But I think what is really interesting is that I would sort of describe them as shell companies in the sense that they have the public appearance of not being CCP-linked and not being CCP-owned. | ||
| But when you really dig down into the ties of who are running these companies, who's running not only the finances but the tech development, It is almost always people who have ties to the Chinese Communist Party. | ||
| And frankly, even the companies themselves, you've seen how Chinese Communist Party-owned companies, tech companies, surveillance companies have done very, very, very well in the United States. | ||
| Under Joe Biden, you have Chinese Communist Party-owned drone companies partnering with police stations to help surveil Americans. | ||
| So no, I would not be surprised one bit I think a third, like I said, is probably a lowball. | ||
| I would say probably upwards of a half. | ||
| Silicon Valley is, you know, all roads lead to Beijing, but that is all of the roads. | ||
| Over the weekend, Natalie, how can people get you on social media, the site, all of it? | ||
| Where do people track you down? What are your coordinates? | ||
| Natalie G. Winters on Instagram, Twitter. | ||
| You can find me on Facebook, Getter, and go to warroom.org to keep up with the latest stories that we're publishing. | ||
| Natalie Winters, who's done more to investigate the existential threat to the United States, the Chinese Communist Party, than any living soul in this country, and all before her 22nd birthday. | ||
| She's the executive editor of War Room and her co-host here, Natalie. | ||
| Thank you very much. Have a good weekend. | ||
| Thank you, and she wants to be sanctioned before 25. | ||
| Okay, Natalie Winters, this story on the Wuhan lab, now you saw 419 to 0, the House basically demanding the head of director of national intelligence Which the CIA reports to, DIA reports to, NSA reports to, to turn over all documentation about the COVID-19 origin story. | ||
| Okay, short commercial break. We're going to get back into this debacle on the budget in the Silicon Valley Bank. | ||
| All next in the War Room. | ||
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Battleground with Stephen K. Bannon. | |
| The fourth best performer year-to-date is SVB Financial, don't yawn? | ||
| This company's a merchant bank with a deposit base that Wall Street had been stately concerned about. | ||
| SVB, its old Silicon Valley Bank, recently bought one of our favorite research firms, Boffitt& Nathanson, and it's become less dependent upon private equity and venture capitalists offerings. | ||
| Wait a second. Those dried up last year, they could come back. | ||
| Yeah, some of the comeback here with the stock directly affects an oversold position. | ||
| Stock was the fourth worst performer in 2022. | ||
| I think the fears were not justified, and it's a very compelling situation. | ||
| Hey, by the way, long-term private equity and venture capital, they're not going away. | ||
| Being the banker to these immense pools of capital has always been a very good business. | ||
| Stock's still cheap. Now, you have to remember that a stock that falls 66%, like SVB Financial did last year, it takes it a lot more to recover. | ||
| After losing two-thirds of your value, you need a 200 % gain to get back to even. | ||
| This is arithmetic. Some people call it geometry. | ||
| So you could argue SVB's nearly 40 % rally this year is barely a drop in the bucket, and that's how I want you to think it. | ||
| I think it's also a good example of why these bounce-back moves might be far from over. | ||
| These stocks that have more room to run, Especially if you think they were driven down to artificially low levels by tax law selling, artificial dumping, like we saw. | ||
| I've listened to some of the smartest people all day, and I concluded that nobody, not even the Fed, knows what happens when the most important bank in Silicon Valley gets seized by the FDIC, as is what happened today. | ||
| Yeah, we left here with no real idea. | ||
| Will there be contagion? Could this be an outlier? | ||
| We just don't know. | ||
| At first blush, there was some strength to the market with the weakness contained to the banks and techs, as in which banks are next to fall and which tech stocks are going to get hurt because it has money there, which startups will be crushed. | ||
| I mean, hey, look, we just found out this evening that Roku had 26 percent of its considerable $1.9 billion cash worth with this company. | ||
| And we know there's never just one cockroach in a bank's kitchen. | ||
| Who knows? Maybe there are companies that trade now or are going to come public that are just plain done. | ||
| Stick a fork in it. | ||
| So by the end of the day, we got a nasty sell-off in anything that needs a strong economy. | ||
| Banks, tax, signals. | ||
| Because who knows where all that money is, and maybe a recession could be caused by this bank. | ||
| Yeah, they're failure. | ||
| What other companies kept their money in the bank? | ||
| It's all I know. But why don't we do this? | ||
| It might be something that's not rash, but rational. | ||
| Let's step back for one moment. | ||
| There's one key way in which this bank failure could actually be good news for all of your stocks. | ||
| Now, I didn't hear many people offer this view today. | ||
| Sure, any institution remotely connected to SVB, depositors, borrowers, venture capitalists, is going to be hurt and hurt big time. | ||
| There's going to be some major losses. | ||
| But you know what? Even with those losses, I do not see this as a systemic problem. | ||
| I actually see it as a cool hand loop problem. | ||
| As in, what we got here is a failure to communicate. | ||
| SVB downplayed that it was getting killed on its bond portfolio each time the Fed raised interest rates. | ||
| The bank didn't signal that it had too many bad loans. | ||
| They were backed up in stock in startups that haven't been able to come public because there's no appetite for IPOs when the Fed's tightened aggressively. | ||
| It should have been raising money like crazy for months like some of the other banks out there. | ||
| Instead, it seemed frozen during the headlights, seemingly just pretending that things were okay. | ||
| Which brings me to the key question. | ||
| Can the Fed really keep tightening like crazy before they know how bad the contagion might be from SVB's demise? | ||
| I don't think that'd be prudent. | ||
| Can the Fed really raise interest rates dramatically when it doesn't know what could happen now that they've blown a hole in the most vibrant and viable part of the U.S. economy? | ||
| Tech? I don't think so. | ||
| Of course, there's nothing wrong with the market's negative reaction the last couple days. | ||
| Bank failures are bad, especially when we have no idea how extensive the collateral damage will be. | ||
| Don't want to sugarcoat that. | ||
| But the Fed's been fighting against inflation, and there's nothing more deflationary than the collapse of a highly indebted bank. | ||
| Nothing. It would be reckless for them to keep tightening aggressively now that banks are going under. | ||
| J-PAL wants to hit the brakes on the economy, but he doesn't want to cause an 18-car pileup. | ||
| Can you help us understand the game plan moving forward for how you all will actually work on the leverage to get leadership? | ||
| Okay, right here. Stop. | ||
| Stop. I don't want those connected. | ||
| So stop right there. | ||
| Kramer. The first part of that was Kramer pitching this stock less than 30 days ago as a buy to go long. | ||
| And everything he said right there, remember, this is what's happening in Washington, D.C. now because they've got to get their narrative together. | ||
| And they don't want, you know, Powell's raising rates. | ||
| This is the out-of-control fantasy. | ||
| The business model we have with the bond market, the smart money's been thrown up all over this, and you've got these massive losses in the bond portfolios, and now they're starting to blow the bottom out of these financial institutions. | ||
| This is as serious as it gets, and no, Kramer, you are wrong. | ||
| This is systemic. | ||
| First Republic. | ||
| Peter Navarro just said Silicon Valley back at $17 billion. | ||
| So they had $200 billion of assets. | ||
| They had $179 billion of deposits, of which $169 billion. | ||
| were not secured by FDC because they're in accounts over $250,000. | ||
| They have a thousand of the premier startups in the country, which are not going to be able to make payroll next week. | ||
| It's the second biggest bank value in the nation's history. | ||
| It's the 16th biggest bank in a premier bank, right? | ||
| A platinum bank that banks the elites. | ||
| It's not systemic. There's $600 billion, as Peter Navarro says, Wall Street Journal's reporting, $600 billion of unrealized losses on bond portfolios on banks' balance sheets right now. | ||
| This is what we've been telling you about the inverted real curve, the bond market getting trash, and look at the bond market more than the stock market. | ||
| There is a massive problem here. | ||
| The other massive problem is at least the way we viewed it here at the War Room is that the California regulators stepped in before the Fed. | ||
| And why is that? Why were they slow to react? | ||
| They're slow to react because they do not want to admit, they do not want to admit that this comes from the railhead of the Biden economic and financial policy. | ||
| We are in an absolute crisis now, and if you don't see it right there, and next week, that's when we had Gates on the first hour, I'm telling you, there's no bailout and no talk about any bailout, no talk about any money that's given them a thousand bucks and say, hey, I hope that works out well in East Palestine, Ohio. No discussion of a bailout there for the deplorables. | ||
| But already, right now, there's already a massive talk about a bailout. | ||
| Let's play, do I have They have Yuan, the Chinese venture capitalist, Chinese-American venture capitalist. | ||
| Is that ready to go? | ||
| Can I go ahead and play that about the payrolls? | ||
|
unidentified
|
Let me play that. The Silicon Valley bank collapse, rattling the startup world. | |
| One venture capitalist calling this a potential extinction-level event for startups that could set innovation back by ten years or more, adding big tech will not care about this. | ||
| They have cash elsewhere. | ||
| All little startups, tomorrow's Googles and Facebooks, will be extinguished if we don't find a fix. | ||
| Joining us now is Gary Tan, CEO of Startup Fund Y Combinator. | ||
| Gary, welcome. | ||
| This is my question. | ||
| How many of these startups that have been through Y Combinator, for example, have their cash tied up at Silicon Valley Bank and over this weekend are going to try to figure out how they're going to make payroll next week? | ||
| Do they have to go to investors and say, can you front me some cash so that we can stay alive? | ||
| YC has funded about 3,000 active startups right now. | ||
| I would guess that this affects more than 1,000 startups, and about a third of those startups will not be able to make payroll in the next 30 days in the current configuration. | ||
| As of this morning, Rippling, which many startups use to manage payroll and benefits, transfers were not being processed by SVB for payroll. | ||
| And so that's a really existential threat for Companies broadly, you know, these are founders who are texting me and calling me saying, do I need to furlough my workers next week because I do not have other bank accounts. | ||
| You know, a Google or a Facebook or even companies farther along with the Treasury Department, they're going to be able to weather this. | ||
| But if SVB is your only bank, it's actually an existential risk. | ||
| You're going to go out of business if you can't pay payroll. | ||
| And that starts Monday. | ||
| Okay. Okay. | ||
| Right there. By the way, Jack Baksova, the great Jack Baksova, has been putting up for the last couple hours, hey, you're the guys that deplatformed everybody, and now you're going to sit here and whine about, oh, you need a bailout. | ||
| And this is not small. | ||
| I want to repeat, and this is what, there's something wrong here. | ||
| I mean, deeply wrong. | ||
| It's systemic, but also deeply wrong. | ||
| The CEO sold $2 or $3 million worth of stock just a couple of weeks ago. | ||
| The CFO sold stock. | ||
| They've got to get all over the situation. | ||
| There's 179 billion of total deposits, or 176 billion of total deposits, but unsecured deposits, which means, hey, the venture capital companies and the startups and the tech companies that have their money there, they can't get to it. | ||
| And even FDC, remember FDC insurance, it's not like they pay it on Monday. | ||
| That's a process that takes, I don't know, six months, nine months, a year. | ||
| Right? These companies need cash, and it ain't there. | ||
| And Bill Ackman, Bill Ackman, who literally hates the deplorables, hates the deplorables, has already come out and said, if somebody can't step in and buy this bank over the weekend, and JP Morgan's already announced they're not having any part of this. | ||
| Because a lot of those banks got hammered on assets that they bought in the meltdown of 2008. | ||
| Ackman has already said that the government's got to step in here and actually do a bailout. | ||
| Your taxpayer dollars to bail out the elites in Silicon Valley who don't give a crap about you, who deplatform you, who look down their nose at you, who laugh at you when they're making all their stock options and all their warrants, everything kicks in. | ||
| Your bettors, your bettors, all these arrogant You know, digital nomads, right? | ||
| That just sit there and mock and ridicule everything you stand for. | ||
| Well now, they ain't mocking and ridiculing. | ||
| They're gonna come to the deplorables like they always do, like they did back in 2008. | ||
| And here's the thing. They're gonna have to prove the case of the contagion. | ||
| That's just gonna spread. Or if it's just not systemic in the fact that these banks and these financial institutions have not been properly managed. | ||
| It looks like First Republic Bank people are talking about already. | ||
| I think the stock down 60%. | ||
| Also, what he was whining about there is to stop the Fed from increasing interest rates to try to stop inflation because they hadn't figured out the second or third order impact of everything they're doing. | ||
| He says, oh, well, we could crush all the financial bank. | ||
| He says, we've been talking about that from the beginning. | ||
| What you need is adults in the room. | ||
| We cannot continue to spend. | ||
| And this is the arrogance of them. | ||
| And this is the fact they're not treating you like adults because they're not acting like adults. | ||
| The budget they just gave you the other day is $6.8 trillion. | ||
| And they put some taxes on there, right? | ||
| A couple trillion dollars of taxes, but it still leaves, what, $16 trillion of unfunded deficits. | ||
| The deficits I think this year, and his budget he put forward is $1.8 trillion. | ||
| And I think that includes his tax increases, or if it's a trillion four. | ||
| My point is the number is so huge and so epic that almost to beggar belief, the arrogance of the Biden regime and the spending they've done in collaboration with Mitch McConnell, the arrogance and the irresponsibility of the Federal Reserve, okay? This is what brought us to this moment, and this is a big moment. | ||
| This is not some regional bank that does agriculture lending. | ||
| This is not some regional bank that does lending to the mining industry. | ||
| This is not some bank in the South that lends the textile industry. | ||
| This is the premier bank in what is supposed to be the engine of not just American innovation, but the American economy, Silicon Valley. | ||
| And this bank, with the CEO selling stock over the last couple of weeks, and what did Kramer do? | ||
| By the way, I don't even know how this guy's on television. | ||
| I don't know how the strike lawyers haven't just sued the network out there for the financial advice. | ||
| He said, you know, they shouldn't have been their passive. | ||
| They should have been out raising capital in the last couple of months. | ||
| Well, to raise capital ought to have gotten wiped out. | ||
| They didn't have enough control of their business, and quite frankly, what the Fed was doing, what the Biden regime was doing, was crushing the bond market. | ||
| So what are they going to do? | ||
| Go lie to people about that? | ||
| It's absolutely incredible. | ||
| This story is only going to get bigger, and here's why it affects you. | ||
| Remember, you're chairman of the creditors committee, and you just had the second biggest bank takeover, the biggest bank failure. | ||
| In American history, let me repeat that. | ||
| The second biggest bank failure in American history, $208 billion of assets. | ||
| It had $169 billion of unsecured deposits, which you're going to say, we can't make payroll, and the deplorables, you're going to have to bail us out again. | ||
| Boris Epstein's on the line. | ||
| Boris, your perspective before he became a A lawyer and worked with the president. | ||
| You were a deal guy on Wall Street. | ||
| How big a deal is this irresponsible failure of Silicon Valley banks, sir? | ||
| Steve, honor me with you. | ||
| Honor me with the pocket. It's a huge deal. | ||
|
unidentified
|
It's a huge deal because SVB was supposed to be a golden child, right? | |
| It's a golden child for all those fancy tax, fancy venture funds. | ||
| That's what SVB was. | ||
| And now it means it shows that the bonanza is finally coming to an end. | ||
| But there's going to be pain. | ||
| There's going to be pain. | ||
| There's going to be a domino effect. | ||
| This is a serious development, as you just laid out. | ||
| And again, what it says is that our economy, because of the absolute responsible leadership of the Democrats and the RINOs, Our economy is in deep, deep peril. | ||
| By the way, Boris, help me out here. | ||
| Were there any bank failures during President Trump's four years of peace and prosperity? | ||
| Were there any bank failures that you remember? | ||
| Particularly a bank failure of this magnitude, sir? | ||
| Absolutely not. Did President Trump have a country in full peace and prosperity up through Christmas of 2019 when the CCP essentially released or allowed to be released or inadvertently released a bioweapon that came to the United States, | ||
| sir? President Donald J. Trump had our economy at the strongest that has ever been in our history before The release of, which by the way now, you know, a year ago we were all conspiracy theorists, but now it's accepted by even the Biden administration and the FBI, | ||
| just released from the Wuhan lab, so the release of COVID. And by the way, then the president got our economy back to being the strongest in American history after fighting through COVID, before it was all destroyed by hopeless, pathetic Joe Biden, the Democrats, and the Rhinos. | ||
| Is there any group in the country that looks down their nose at the deplorables and at the MAGA movement more than the tech oligarchs in Silicon Valley, sir? | ||
| No, absolutely. | ||
| And it's not just SCB, right? | ||
| Look at the whole issue of the last two years. | ||
| Look at Facebook. Look at Twitter. | ||
| I mean, there's no two ways about it. | ||
| Look at Simon Blank with freedom and everything that's happened in the last two years. | ||
| Five, ten years has been about the tech oligarchs who are so close to the Chinese Communist Party, the way that they absolutely deride and disrespect the MAGA movement, President Trump, and the American people as a whole. | ||
| Boris, you lived through 2008. | ||
| You were a street guy. You saw how it was created and what happened in the Obama administration and the bailouts. | ||
| When they come next week, and coming they are, because they're going to say it's a national security problem. | ||
| Gates was on here a little while ago. | ||
| DOD's involved. You got DOD companies. | ||
| You got all these intel companies, intelligence companies. | ||
| They're going to say, we need to bail out so they can actually make payroll over the next couple of weeks. | ||
| And we got to do it. We have to have massive bailout here because you don't want the contagion to spread. | ||
| What would be the appropriate response, Boris Epstein? | ||
| The appropriate response is that the time of irresponsible spending, the time of irresponsible propping up is over. | ||
| It's over. Now, if they find some restructuring, we are the creditors committee. | ||
| If they find an appropriate restructuring where SVB is able to be put back to normal, okay, we can consider that. | ||
| But you've got to take a deep look inside. | ||
|
unidentified
|
And how similar is SVB to FTX? No, this is absolutely, it's absolutely incredible. | |
| What would you say, by the way, has anybody, you know, here the thing has only been dead for a couple of hours. | ||
| You know, the body's not even cold and they're calling for potential bailouts. | ||
| You know, they got to make payroll, all these, the innovation, a thousand great companies are going to go away and we're going to be 10 years with no innovation. | ||
| Do you remember anybody to date, has anybody talked about a bailout for the deplorables in MAGA in East Palestine, Ohio. | ||
| Sir, did you catch any of that, Boris? | ||
| You know, I keep looking for it, and I haven't found it anywhere. | ||
| What I did find is the fact that the EPA, the fact that FEMA, and the Biden administration all refused to support East Palestine, refused to stand behind the deplorables, refused to stand behind America, the East Palestine, While continuing the order of spending into Ukraine, and of course doing anything they can to prop up their big tech oligarch fronts. | ||
| Boris, how does this tie into Joe Biden just came the other day and says the MAGA Republicans stop and everything, and he lays down a $6.8 trillion budget with not one cut to any program whatsoever, sir? | ||
| What this means to you, And you've got to look at everything as a whole picture. | ||
| And it's vital for the policy. Always signal, not noise. | ||
| It's got to be holistic. We have a decrepit system. | ||
| We are an absolute house of cards. | ||
| And the hopeless Biden budget, including the continued, continued absolute destruction of our national economy, the destruction of our border, the destruction of our energy independence, And again, the orgy of spending all over the world, but specifically on the festering fires surrounded by nuclear reactors in Ukraine. | ||
| That is what it ends up in. | ||
| And if anybody thinks that SVB is the last one, you're kidding yourself. | ||
| FTX, SVB, more to come. | ||
| And I hate to say this, and I was on Wall Street at the time. | ||
| I had no bank tweet as an attorney. | ||
| If anybody, most of us who lived through that, we see this, and honestly, this feels worse to you. | ||
| This feels worse because there's absolutely no adults in the room anywhere. | ||
| Big time. Okay, I'll be on TimCast Live tonight, 9 o'clock with Matt Gaetz, 10 o'clock on the Royce White Show tomorrow morning, 10 a.m. | ||
| You've got to be here. The collapse of the neoliberal neocon order will go through detail. | ||
| Boris, how do people track you? | ||
| What are your coordinates over the weekend? | ||
| Steve, go crush it on the shows. | ||
| You're going to kill it on TimCast, no doubt about it. | ||
| And again, people, this is why we need President Trump back in office to assume it's humanly possible, because these disasters are going to spread. | ||
| He's the only one who can solve it. | ||
| My information, borisdp.com, hot on borisdp.com, hot on getter at borisdp, on Twitter at borisdp, hot on true social at borisdp, the hottest on the ground, boris underscore Epstein. | ||
| Stay strong, God bless, and Shabbat Shalom. |
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