In addition, Charlie Gasparino warns that the collapse of SVB could be a “warning sign” for “more to come”
Former UBS CEO Robert Wolf is sounding the alarm over the disorienting collapse of Silicon Valley Bank – one of the country’s largest banks – warning Americans that the US economy is going through “harsh times.”
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“It seems incredible. Yes, it’s a rough time, but it doesn’t feel like Lehman at all. Lehman was a contagion that spread throughout the world. Nothing like this. It will definitely cause a lot of anxiety,” he said. during an appearance on Fox & Friends Weekend.
“I believe one of two things will happen. First, either someone will come over the weekend – like JPMorgan Chase – and buy Silicon Valley Bank, because it’s a great bank to buy. This is very unique for this type of venture capital that you can get in a bank,” explained a former economic adviser to Obama. Or, secondly, the FDIC is going to do something they never did. The FDIC insurance, I’m sorry to renew, is only insured up to $250,000… but there’s enough coverage to immediately give all savers 50% to 75% of their money.”
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closure Silicon Valley Bank (SVB) was announced Federal Deposit Insurance Corporation (FDIC) on Friday in what was the largest bankruptcy of a US financial institution in nearly 15 years.
SVB was the 16th largest bank in the United States until Friday evening. It failed after anxious depositors rushed to withdraw money, fearing for the health of the bank.
FOX Business Senior Correspondent Charlie Gasparino posted his own analysis of the economic crash during an earlier appearance on Fox & Friends Weekend on Sunday.
“This is a warning sign of how messed up the plumbing is in our banking system – our economy.”
Gasparino backed the former UBS CEO’s claim, arguing that the collapse of the Silicon Valley bank is an incriminating sign that the US banking system and economy are in danger.
“I think it’s something that affects all Americans and it’s a warning sign of how bad the plumbing is in our banking system, in our economy. Let’s rewind the videotape a bit. You know, we’ve had years and years where the Federal Reserve has been printing money – way too much. Even as we emerged from the pandemic, the Biden administration was spending a lot of money. You do things like that, you screw up the economy so much,” he told co-host Pete Hegseth.
“You mess with the economy like we do, doing really stupid things, Joe Biden is spending all that money when he doesn’t need it. When we came out of the pandemic, the Fed just kept keeping interest rates low by printing money. If you do this, you will get inflation. When you get inflation you will raise interest rates because inflation is terrible. It destabilizes society and the economy. What? You will have these kinds of disturbances. This is a warning sign that perhaps there is still more to come,” Gasparino concluded.
Aislinn Murphy of FOX Business contributed to this report.
Credit: www.foxbusiness.com /