Reaction & Commentary
good evening and welcome to Tucker Carlson tonight the war ongoing in Ukraine whatever your view of it is completely reshuffling the world order and America’s place in it and it dawned on us last week that it’s not clear where some of the people running for the Republican nomination stand on that war so we sent a questionnaire to everyone running an amazingly almost all of them responded candidly and at length and the picture that emerges of where the Republican candidates running for president stand in Ukraine is a little bit shocking it’s not all we expected and it’s not at all what Republicans on Capitol Hill are saying more evidence that there’s a disconnect between Republicans in Washington and everyone else we’ll get that in just a minute but first tonight it has been 15 years since the global financial crisis of 2008 a long time but it hasn’t gone away its consequences in fact still Define our world why is the US government so deeply in debt how did Wall Street get so much money what do they do exactly why are housing prices so high why do our leaders Stoke racial conflict why have so many Americans concluded that their system is rigged in every case the answers to those questions is the same it All Began in 2008. now 2008 evidence aftermath is a complex story but let’s just sum up in the broadest possible terms what happened big financial institutions took foolish risks and nearly blew up the entire U.S economy we knew right away what had happened and who did it but nobody was ever punished The Reckless Bankers responsible got off so did the politicians who encouraged The Reckless Bankers to be Reckless nobody went to jail nobody was even banished from the industry in fact some of the wrongdoers even got their bonuses that year so we had economic collapse but it didn’t hurt them at all why well simple the government bailed out the banks that was controversial but bipartisan and at the time they told us in bipartisan fashion that they were saving capitalism but they weren’t in fact they were inverting capitalism what happened next is very simple Wall Street was allowed to privatize its gains but socialize its risks that meant if things went well the finance people got rich in fact richer than any group in human history but if things went South the government you would swoop in to save them pretty good deal but for more than a decade very few complained about this Arrangement because things went very very well Wall Street boomed and the root of Wall Street success no matter what they tell you was low interest rates not new innovation low interest rates low interest rates make a bull market inevitable so in a normal non-distorted capitalist economy companies become valuable more valuable when they produce more goods and services that people want to buy but in an economy controlled by monetary policy run by the Federal Reserve companies become valuable when interest rates decline so for 13 years interest rates remain near zero in retrospect now that it’s ended this was crazy behavior these were emergency measures declared by the Federal Reserve after 2008 but they never ended and because they never ended for 13 years the American economy was distorted beyond recognition in ways too numerous to count venture capital and private Equity exploded so did cryptocurrency so did asset prices particularly real estate there was an ocean of money flooding the system and the people who pay half the tax rate you do benefited most they started buying third houses and flying private but there was also a problem that you didn’t hear a lot about with low interest rates if interest rates are at zero how do you get meaningful Returns on your money this was a problem that virtually every investor faced for more than a decade very much including the banks at some point investors became tempted to make very risky bets if they wanted to produce returns they had to as they say on Wall Street Tina there is no option one of the risky bets that Banks made was loading up on long-term treasury bonds from the US government as a surrogate for cash though corresponds are not cash they’re different from caches we’re now learning but that worked fine as long as interest rates remained low but once interest rates Rose as a response to inflation is obviously they were always going to do nothing lasts forever including zero interest rates once that happened those Bonds were worth less than the banks had paid for them and so the banks began to fail you are seeing that right now oh you’re also seeing revealed for everyone to see the other effect of 13 years of artificial fed driven prosperity and that is a lot of silly frivolous people in charge they’re like inherited money people they think they earned it but they didn’t because when money is free from the fed you don’t have to be a serious person to get rich you can do whatever you want because there’s no consequence you can put BLM logos on your website you can spend investor funds on female empowerment ski weekends in Tahoe when interest rates are zero you can do anything because making money is easy everybody’s a genius anyone can do it and unfortunately a lot of very stupid people did do it on Friday as you know Silicon Valley Bank svb failed that became the second largest bank failure in American history then on Sunday authorities took over Signature Bank in New York that became the third largest bank failure in American history then today shortly after the markets opened trading in several Regional Banks had to be halted Western Alliance was down almost 80 percent First Republic which of course Jim Cramer endorses a few days ago on CNBC that was down nearly 70 Jim Cramer is always welcome to come on this show for amusement purposes Pac West down 50 Comerica down 40 and so on so there was Panic of course reflected in markets and it wasn’t just Regional banks that were affected for a while this morning you could not even trade stock in Charles Schwab venerable Charles Schwab shrub it down 25 and trip to circuit breaker that’s bad in fact that kind of panic could quickly conceivably become a catastrophe so on the brink of catastrophe you need one thing strong competent leadership but we don’t have that we have Joe Biden today he shuffled out to the podium and announced a bailout I want to briefly speak about what’s happening in Silicon Valley Bank and Signature Bank today thanks to the quick action of my Administration over the past few days Americans can have confidence that the banking system is safe your deposits will be there when you need them small businesses across the country the deposit accounts that these Banks can breed easier and knowing they’ll be able to pay their workers and pay their bills all right so the money to buy Administration is using for this bailout apparently is coming from the FDIC so the feds have it covered don’t worry about the details everything’s totally fine hold on slow down pal how did this happen can we get an explanation for that don’t we have regulators and how did those Regulators since we’re pretty confident they exist on taking big salaries how did they miss the fact that svb was insolvent apparently for months and not in some complex credit default swap way you’re going to spend 5 000 words trying to understand but in a really simple way that’s easy to understand their liabilities were bigger than their assets it’s very simple how did nobody notice that the people were paid to notice it well Joe Biden unfortunately answered none of those questions he just ran for the door thank you God bless you and may God protect our troops see in California Mr President what do you know right now about why this happened and can you assure Americans that there won’t be a ripple effect do you expect other Banks to fail Mr President should all depositors be protected at all banks all right thank you everybody okay do we know why this happened he’s trying to figure out how to work the doorknob what we know is the byte Administration is backstopping these deposits okay but that’s not the end of the story in some ways it’s the beginning so here’s the part where you pause and ask yourself a question that too few seem to be considering right now they’re doing this what are they going to get in return or something for sure remember that after 2008 the Obama Administration Eric Holder swooped in and imposed Dei diversity equity and inclusion standards on the entire financial sector and that’s one of the main reasons our big banks are now increasingly incompetent and also one of the reasons Americans are so divided by race ideologues use the 2008 Bank bailout to kill American meritocracy that’s a big step mostly unacknowledged but we’re living with its consequences so you have to ask yourself what are they going to do this time well we know we’re about to see Bank consolidation big Banks eating little Banks and that means less competition more consolidation means more government control so what are they going to do with that control well all things being equal if people don’t start making a lot of noise and exerting an awful lot of pressure it’ll mean digital currency a currency that politicians control sign up for the cbdc app to get your food stamps you think that’s not coming of course it’s coming they’d like it to come in any case now we’re not alleging a conspiracy here but we did notice that the four biggest banks Wells Fargo Bank of America JPMorgan Chase are doing well and we also notice the White House appears to be I mean we’re just reading into this too much trying to induce runs on Regional Banks they seem to be trying to take away your confidence in those Banks here’s Kareem Jean-Pierre the White House practitioner not someone ever accuse of having an original thought but she’s a vessel for the plans of others here she is on Friday as svb was collapsing now she doesn’t say a word about the fundamentals of the market or the security of your money in Banks instead she talks about the one thing that matters to her which is the racial identity of the people in charge of our finance system watch I do want to take a moment to note the historic nature of the moment that you see in front of you right now all three of us are historic first in our roles the first black woman to serve as cea chair OMB director White House Press Secretary the first black women right in front of you for all of those three important important key roles in the administration these people lack all self-awareness as if anyone would care why should we care is there some reason to care and by the way you are discrediting by your stupidity and clear incompetence anything you’re promoting you should keep that in mind but big picture if you want to make people less confident in Regional Banks and the banking system more broadly if you wanted to maybe induce a run on the banks this might be how you talk oh we’re all of a certain racial group huh what does that have to do with whether the banks have enough cash in reserve to cover their balance sheets so what we do know is that the Democratic party the body Administration sees this crisis as a means of expanding their control and we know this because in a recent zoom call with the FED Treasury Department other Financial regulators with members of Congress senator Mark Kelly of Arizona asked whether there was a program in place to censor social media posts that could lead to a national run on banks now that’s according to Congressman Thomas Massey Michael Schellenberg is a great piece on this today Massey was on the call so think about this for a second you’ve got a deposit at a Regional Bank that’s holding tons way more than you know of long-term treasuries that are worth a lot less than they were when the bank bought them that means that bank is at risk that means your money’s at risk but Senator Mark Kelly of Arizona doesn’t want you to know about that why wouldn’t they want you to know that kind of interesting that kind of censorship could actually Crush people so we have to ask the obvious question how close are we to some sort of disaster and to what extent are the people in charge of betting it subscribe to the Fox News YouTube channel to catch our nightly opens stories that are changing the world and changing your life from Tucker Carlson tonight
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Video Duration: 00:12:20
