I imagine the Federal Reserve will find some way to rescue the depositors. I’m ambivalent about that – I suppose it will happen – but I have to ask them what part of ‘guaranteed up to $250,000’ didn’t you understand? //

A lot of folks are claiming that not making depositors whole will create a loss of faith in the system. From my point of view, the problem with our financial system is entirely too much faith. Bankers have mutated from the ultra-cautious figures of the 40s and 50s into casino hustlers. Staid, fiscally conservative local and regional banks have been absorbed by behemoth companies who insulate themselves from the consequences of their actions by being “to big to fail.”

The availability of government bailouts to depositors and investors has prevented anyone from learning the lessons of the past. With barely a decade separating us from the 2007 catastrophe, you’d think that someone would remember that when gambling with investors’ money. //

I will NOT support a taxpayer bailout of Silicon Valley Bank. pic.twitter.com/s3wAV26iNL

— Rep. Matt Gaetz (@RepMattGaetz) March 11, 2023

I hope Matt Gaetz gets support in the House and the Senate. We need to draw a line in the sand here, for the good of the financial system and the nation. If you are a bank and become insolvent, you will be shut down. If you have more than $250,000 in your insured account, you’ll get back the exact amount that is insured. Companies that fold, even if they are cute little tech companies with bazillions in venture capital backing, are just roadkill. We can’t afford to perpetually subsidize the lousy judgment and cavalier attitude that seems to infest the financial services and banking industries any longer.