March 13, 2023 - Human Events Daily - Jack Posobiec
25:59
EPISODE 417: THE SILICON VALLEY SWINDLE
On today’s episode of Human Events Daily, Jack Posobiec is joined by Editor-In-Chief of the Post Millennial, Libby Emmons to discuss the second largest bank collapse in history! Their conversation spans President Biden’s announcement that the depositors of Silicon Valley Bank will be made whole, to President George W Bush’s infamous statement that he “had to abandon free market principles to save the free market system.” Poso and Emmons also explore the economically fueled, philosophical ques...
Ladies and gentlemen, welcome aboard tonight's edition of Human Events Daily, powered by Turning Point USA.
Today is March 13th, 2023.
Anno Domini.
Tonight's top story is the Silicon Valley swindle.
When is it bailout?
Not a bailout.
Guess what?
It is a bailout.
Second, why are so many young Americans not working?
How is this all tied together?
And lastly, will this fear, uncertainty, and doubt lead to a run on the banks?
We have a lot to get into tonight, folks.
So let's start Human Events Daily.
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the Pozo Daily Brief. - Obviously have made a decision to make sure the economy doesn't collapse.
I've abandoned free market principles to save the free market system.
I think when people review what's taken place in the last six months and put it all in one package, they'll realize how significantly we have moved.
And I'm so sorry we're having to do it.
I'm not real happy about the fact that There have been excesses in the financial markets which are affecting hard-working people and affecting their retirement accounts.
Having said that, I'm very confident that with time, the economy will come out and grow and people's wealth will return.
Look, the bottom line is this.
Americans can rest assured that our banking system is safe.
Your deposits are safe.
Let me also assure you, we will not stop at this.
We'll do whatever is needed.
On top of all of it, let's also take a look at a moment to put the situation in a broader context.
We've made strong economic progress in the past two years.
We've created more than 12 million new jobs.
More jobs in two years than any president has ever created in a single four-year term.
Unemployment is below 4% for 14 straight months.
Take-home pay for workers is going up, especially for lower- and middle-income workers.
And we've seen record numbers of people apply to start new businesses, more than 10 million of them.
More than 10 million applications over the last two years starting businesses.
Now we need to keep the program this progress going.
That's what swift action that my administration over the past few years is all about.
Protecting depositors, protecting the banking system, protecting the economic gains we've made together for the American people.
Got to protect it all.
We got to protect the system.
We got to protect our donors and our supporters.
Cause that's what it really is here for Biden.
For all of this 98% we pulled it.
We pulled the numbers over the weekend.
98% of tech company donations went to the Democrat party, Democrat members of the house and Senate, the number one donor of Silicon Valley bank.
Last year, according to OpenSecrets.org, nonpartisan center, President Joe Biden.
Joining me to walk through all of this insanity, the Editor-in-Chief of Human Events and the Postmillennial, Ms.
Libby Evans.
Hey Jack, how's it going?
Well, it's, it's crazy out there and it feels like we're in this situation where suddenly all of the people, all of these mavens of Silicon Valley and Yeah, that's a really good question.
Why can't they run a bank?
I think what we have in the tech sector are depositors who, when they're not filling their coffers with money from VCs, are actually rapidly spending it.
Libby, why is that?
Yeah, that's a really good question.
Why can't they run a bank?
I think what we have in the tech sector are depositors who, when they're not filling their coffers with money from VCs, are actually rapidly spending it.
Tech companies typically in the past few months have been spending an awful lot of money, making an awful lot of withdrawals, writing a lot of checks, and they haven't been putting a lot of money back in the bank.
Which led to a depletion of assets, for sure, for SVB.
But so, so, I mean, I get that that's what happened.
I understand that a lot of this is because of Biden spending, the raising of rates.
But when we see interest rates rise, and Zero Hedge was talking about this the other day, It always seems like the fakest part of our sector always blows up first.
And in the, in the late nineties, that was.coms in 2008, it was the subprime mortgage crisis.
And now of course it's Silicon Valley, because you look at the amount of funny money that the fed has been spending.
And spreading throughout this system that we talk about it all the time because Libby Even over at post millennial.
I know you guys cover it.
I know we cover it at human events.
They haven't even been putting it behind assets that make any sense anymore.
Now, when they get this money from the fed, they get, you know, money printer go burr, and they're putting it behind every single ESG project that they can find.
And they use, use the ESG score.
And isn't this a huge function of the Silicon Valley bank?
Yeah, well, a lot of tech companies do pour all of that money in.
SVB pours money into that for their own DEI and diversity initiatives.
The bank itself, I've seen reports, has been doing that, as do so many of these tech companies.
They hire diversity experts to pay them hundreds of thousands of dollars a year and make sure that they are Elevating and promoting people of the right skin color and with the right identifiers and what have you.
And I really do think that that is exposed here.
I think there's a number of other bubbles, too, that we're going to see exposed.
We're already seeing issues with student loans, the complete uselessness of the tuition that colleges charge for students.
To attend their universities and study all of this diversity and inclusion and equity garbage so that they can all graduate and go get these jobs and build up this massive diversity spending bubble that, you know, here we see the collapse of that.
Clearly, the color of a person's skin or their lived experience or how inclusive their identifiers are should have absolutely no impact On how they're hired and what kind of jobs they get to do or, you know, are elevated to do.
It's totally absurd when we look at it from a civil rights perspective and from the perspective of, you know, Dr. King and other great civil rights leaders who knew that the color of our skin is not the thing that should elevate us.
It's simply... Well, and it's exactly that because...
What they've done is they've been given, they've been handed the keys of the kingdom with all of this money from the fed.
They're told, basically, if you can talk a good game, if you can get on the hype train, if you can get access to a lot of this is VC money, by the way, we have to point that out that once you get access to that, they're going to give it to whoever's the wokest, whoever the biggest disruptor is, whether the loudest voice in the room is, and they're not actually looking at Any of the fundamentals in many of these cases for a lot of these businesses.
And yet people are making tens of millions of dollars off of this.
We hold on one second because Libby, we're going to come right back.
We have to take an obscene profit time out right here, because a lot of people complain about the state of our country and the way woke corporations, as we've been talking about treat us and their employees, but it's not up to complain.
We need to change the way the marketplace works.
And if today's story wasn't enough, you need to understand that starts with where we spend our money.
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The ninth 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 mistakenly concerned about.
SVB, it's the old Silicon Valley Bank, recently bought one of our favorite research firms, Moffitt & Nathanson, and it's become less dependent upon private equity and venture capitalist offerings.
Wait a second.
Those dried up last year.
They could come back.
Yes, some of them come back here with the stock directly affects an oversold position.
The 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 a banker to these immense pools of capital has always been a very good business.
The stock's still cheap.
Now, you have to remember that a stock that falls 66%, like SVB Financial did last year, it takes a lot more to recover.
If you're 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 should have more room to run.
Look, we see this again, and we're back with Libby Emmons.
Libby, so Bernie Marcus, the founder of Home Depot, is out there, and he's got this piece where he's saying, look, maybe the American people will finally wake up and understand that we are actually living in very tough times.
And when you're living in tough times, you have to tighten your belt.
And the American people already know that.
Right.
I think most Americans have seen the inflation going up.
They've seen the prices going up.
They've seen their dollar not being able to stretch as far as it was.
And another thing too, and I'd love to hear your take on this.
Where are the workers?
Nobody wants to work anymore.
Nobody wants to do it as Libby we've been doing.
Okay.
So just, just take, put up a pin and all that we go.
And we've been doing breakfast for dinner on every Sunday night with the family.
So, and we've been doing no, no screens on Sundays or Sundays, like family fun day.
Now there's no screens, there's no TVs, there's no movies.
It's just us and the kids.
And we like to go out and do something.
So we're out.
We went to those, one of those like indoor parks with the trampolines and stuff.
And we just have a ton of fun.
And afterwards we're like, okay, let's go to a diner.
And I said, what would be the, I have the last couple of weeks.
Let's let's try the Denny's near our house.
Maybe we go to the Denny's.
There were like two people working there.
And actually when we went to get a, a seat, the, you know, server slash hostess slash everything manager said to us, look, I'm just going to be honest with you.
Uh, it's going to be a 35 minute wait.
And I have no idea when your food's going to be ready because we've got one person working behind the counter and she's a server.
She's not even a cook, but she's cooking the food tonight.
And then I just kind of like, I realize as I'm looking around that there are signs up all over the entire diner that say help wanted now hiring, et cetera.
So, so this is the crazy part.
Inflation is all over the place, all over the map.
Yet at the same time, nobody wants to work where I remember working in food services.
That was like, that's what you did when you were in high school.
That was like a great first job for a lot of people.
Um, most people I know.
That are, you know, like, you know, millennial or, or about their, had their first job in, in food services or landscaping, general constructions, contracting, that kind of thing.
What's going on?
Yeah, I don't know.
My first, my first job was when I was, I think, uh, was I 18?
I was 18 years old and I was scooping ice cream for the summer.
I was working under the table and eating all the gummy bears, but yeah, I could totally see you scooping ice cream and eating gummy bears.
Yeah, I still basically do that.
But yeah, I don't really understand why people aren't working.
I worked a job from the time I got that job when I was 18.
I worked throughout college.
I mean, I've been just working this whole time.
I don't understand how these people who are not working, I don't know how they are eating.
I don't know how they are driving around in their cars or getting anywhere.
What are they doing?
Why are they not working?
Why are they not interested in doing something productive and earning their own money?
I'm so, I love having my own money.
I gotta say, I love spending my own money.
I think it's also, I think it's also because I don't know where these people are, how they're existing.
I think it's also because three years ago during the lockdowns, we, we started sending money out to people for free.
And I understand that by the way, I did understand it at the time because I said, look, if the government is causing you to lose your job, Cause you do not be able to work then, then the government should step up and pay its dues.
But here's the issue that that led to, I think for a lot of younger people is that suddenly they were told that you don't have to work and you get money and that you can sit around.
No, they're not.
But I think what they're trying to do, I think what it broke was that loop of understanding that, you know, you've got to put in some time or, or generate some value to receive money.
And so a lot, a lot of people did.
Was they put that into crypto, they put that into stocks, they put that into stuff like Silicon Valley Bank.
They were speculating on it like crazy.
And so the crypto market has unfortunately taken it on the chin big time, absolutely big time.
Um, even though I will say that there is, there's been some life in Bitcoin today.
Bitcoin is actually up over, um, over the last couple of days.
So we'll see because people are, are spilling into it as they're spilling out of other places, but we'll see if that continues.
Um, but just in general, crypto is taking it on the chin.
And so people are thinking that like, you know what, there are easier ways to make money than making pancakes and flipping sausage.
There may be easier ways to make money and perhaps you can get your money to work for you, but.
But you can also lose it all.
Yeah.
I put a while back as an experiment, I put $300 into Bitcoin.
And you know, it's enough money that I would like to not lose it, but it's not so much money that I'm going to, you know, die if it, if it disappears.
And I keep hoping that it gets back up to 300 so I could just take it out.
You know, that was kind of the deal I had with myself is like, if it comes back.
But the thing too, that I don't understand is why people aren't interested in being productive, aren't interested in pursuing goals and making their own way in the world and making sure that they provide for themselves and their family.
I think that's creepy too!
because we're coming up in the segment, but I would argue it's because of stuff like this.
They see people getting bailed out.
They see Silicon Valley getting bailed out.
They see the government coming in and saying, oh, by the way, we're not just going to cover up to 250,000.
We're going to cover your entire deposit.
Good luck turning that off, by the way.
Good luck turning that off.
So now every every deposit unlimited is is going to be covered.
So what happens when, you know, a regional bank in the Midwest goes down?
Are you going to cover that too?
Are you going to cover everybody?
You understand this is never going to stop.
And so people see that and they say, well, if money's all just flying around, why should I go sit behind?
Why would I go behind the counter and work under the table for a couple of bucks and a couple of extra gummy bears on the side when there's all this, all this other funny money just floating around in the system?
Yeah, I mean, I think that it's really a shame and I think that it is a failure of imagination and human ingenuity when people do not feel compelled to go earn their own living and provide for themselves and their families.
It's really a shame.
And also the full depletion of the, you know, insurance funds that is there to secure the 250 deposit thousand deposit limit that the FDIC has set.
That's basically going to get completely depleted now.
And the Biden administration He's very happy to destroy the savings of the American people.
They've spent all of our oil reserves, you know, not all of it, but like they've spent a ton of our oil reserves totally recklessly.
And we're still seeing Saudi profits on oil, like through the roof this year.
I just, you just have a sense that they don't care about our future and they certainly don't care about, you know, the value of the American spirit.
Libby, hold that thought because we are going to come right back from the break and I want to get into it more.
I obviously have made a decision to make sure the economy doesn't collapse.
I've abandoned free market principles to save the free market system.
I think when people review what's taken place in the last six months and put it all in one In one package, they'll realize how significantly we have moved.
And I'm so sorry we're having to do it.
I'm not real happy about the fact that there have been excesses in the financial markets which are affecting hardworking people and affecting their retirement accounts.
Having said that, I'm very confident that with time, the economy will come out and grow and people's wealth will return.
So that was George W. Bush, December 2008, the height of the financial crisis with an infamous clip. - Right.
I had to abandon free market principles to save the free market system.
That clip has been almost completely scrubbed from the internet.
Our team here had to dig and dig to find it YouTube nowhere to be found just regular using front page of Google.
I need that nowhere to be found.
We're able to find it finally on a left-wing blog.
That it actually clipped it and uploaded it from CNN, CNN.com nowhere to be found.
The regime gets rid of the videos.
They don't want you to find.
And here's what's amazing about that.
Because if you remember, he's listening to that clip, he's not talking about the whole system.
He says, he's just talking about the auto companies, but if you remember what Raheem Kassam said here a few weeks ago on our Sunday special, he said, Jack, This has been the entire system since 2008.
That was the phrase where the Federal Reserve has been pouring money into every single one of their latest things, their current things, whether it be wokeness, whether it be ESG, whether it be climate, whether it be pharma, whether it be vaccines, whether it be Ukraine, whether it be this thing or that thing, they just turn the money printer on and go for it.
And the problem is if you go for them, if you go back and listen to that clip, it sounds like he's talking about the audio industry when in reality they used it for everything and who ended up and Libby, by the way, bring you back in.
You remember, you know, the answer to this one, who ended up owning all of those subprime loans, who ended up taking control of so much of the housing market in this country, transforming us from a homeownership society where we owned things.
Right.
You see where I'm going with this, where we own things to where wall street ended up owning so much of the single family homes in this country.
Yeah.
And that was really a shame, you know, because that, well, first of all, it tanked our entire economy.
Um, but also all of those people who had bought homes, hopefully we're not able to keep them, you know, and all of that debt completely destroyed everything.
And so many people's retirements were all wrapped up in that.
We saw that with the crypto collapse earlier at the end of 2022.
The Ontario Teachers Union had money in Sam Bankman Freed's project and lost all of it.
So what happens is we have these big financial outlays.
Everybody in the society, everyone in our economy trusts it all the way down.
People put their pennies into it.
And it all, it all falls apart.
And then we have people talking about raising the retirement age.
Well, cause we're not, and then who comes in, who comes in it's black rock.
It's black stone.
It's the world economic forum saying you can't own.
They're going to buy all these things at a fire sale, by the way, all these startups, any money that only existed on paper.
And Libby, here's the amazing thing for us, because we saw over the weekend, I know you saw more than I did because I took Sunday off of social media.
This, this idea that it's not the 1920s anymore.
It's the 2020s now.
So it's not just, you know, the groups of people sitting on the floor of the New York stock exchange.
We've got Twitter, we've got social media, and that is where the fear, uncertainty, and doubt is spread like wildfire.
By people who say the only way, the only way to fix everything is for Uncle Sam to step up with the money printer.
And when they do that, by the way, that's only going to eventually make the prices go up.
It's going to make inflation go up.
The U S taxpayer will be on the hook for this because if the cotillion effect that we've talked about here for years at this point on this program, or at least two years now, we've been saying that when you give the gold to the people closest to the King, The people closest to the throne, then they go out and start making purchases in the market.
You know who it affects?
The little guy at the far end.
And who are these taxpayers?
If no one's going to work, where is the tax money going to come from?
Exactly.
That's exactly right.
That's where this is.
How can, how Libby, how can you run a country like this?
How can you run an economy like this?
This is not looking so great.
You know, it's interesting because I often have the idea that, you know, the country should be open and we should have trade and all of this stuff.
And increasingly, and you know, probably backwardsly, I keep thinking, you know what?
Just, just shut it down.
Just close it up.
Shut it down.
Let's get our house sorted.
And then let's figure out what we're going to do.
You know, like bring home the factories, bring home the, all of the manufacturing.
Let's, and let's go back to work.
Let's remember that.
I mean, Joe Biden talks all day about, you know, the value of a hard day's work and all that stuff.
And he's facilitating a country where no one knows how to lift a finger.
No one knows how to get any work done.
It's not, it's not a bailout.
It's not a bailout.
We're just increasing the liquidity, right?
How are you doing that?
We're just, we're taking all we're, you know, we're increasing the federal balance sheet.
It's totally not a bailout.
Okay, it's definitely a bailout.
It's definitely a bailout.
Just because you're using money that you already have and you don't have to go get the money before you spend it, that doesn't mean it's not a bailout, you know?
It's a ridiculous concept.
And in the UK, the UK government bought their branch of Silicon Valley Bank, I think for a dollar, or HSBC bought it for just a dollar, something like that.
It's absolutely a ridiculous way to go about doing things.
And what happens to all of these companies now?
They're just going to keep spending exactly the way they were spending in the first place that led to the collapse of the bank.
They're not going to have to change anything.
They're not going to have to do a thing.
You know what that's called?
That's called moral hazard.
You've created moral hazard.
And anyone, by the way, who's a parent understands this.
And they probably have savings because they probably sold off their shares before this whole thing happened anyway.
I mean, it's absolutely like, I don't know why.
The thing with the not working, like that really gets to me because I've worked this whole time.
I'm perfectly happy to work.
I'm happy to, you know, support my son, support myself, you know, have money if it's needed.
I don't know why other people don't want that.
Like when I raise, you know, raising my son and I say, you're going to grow up to being a strong and resilient man who can support himself and his family and clean up after himself and take care of the people he loves.
Don't we value that anymore?
Don't we value our own labor and our ability to make our own way in the world?
I don't want anyone giving me anything.
I think we need to question who exactly are the people that are trying to make us devalue those things.
Libby Emmons, the editor-in-chief of Human Events, my boss, kind of, sort of.
