Banking crisis not over: Who Owns the Federal Reserve Herland Report

Silvergate, Silicon Valley Bank, Signature Bank and related insolvencies much more serious than 2008 crash

 

The crashes of Silvergate, Silicon Valley Bank, Signature Bank and its related bank insolvencies are much more serious than the 2008-09 crash.

Banking crisis not over: The problem at that time was crooked banks making bad mortgage loans. Debtors were unable to pay and were defaulting, and it turned out that the real estate that they had pledged as collateral was fraudulently overvalued, “mark-to-fantasy” junk mortgages made by false valuations of in the property’s actual market price and the borrower’s income, writes economist Michael Hudson at Unz.

 

Why the banking crisis is not over Michael Hudson UNZ Herland Report

Banking crisis not over: Banks sold these loans to institutional buyers such as pension funds, German savings banks and other gullible buyers who had drunk the neoliberal Kool Aid believing with Alan Greenspan that banks would not cheat them.

Silicon Valley Bank (SVB) investments had no such default risk. The Treasury always can pay, simply by printing money, and the prime long-term mortgages whose packages SVP bought also were solvent.

 

RELATED ARTICLES:

 

Banking crisis not over: The problem is the financial system itself, or rather, the corner into which the post-Obama Fed has painted the banking system.

It cannot escape from its 13 years of Quantitative Easing without reversing the asset-price inflation and causing bonds, stocks and real estate to lower their market value. Read the full article here.

 

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Led by Scandinavian bestselling author, Hanne Nabintu Herland, The Herland Report news and opinion website provides independent analysis from leading Western intellectuals and ground breaking YouTube interviews, cutting through the mainstream media rhetoric. It is a great place to watch interviews and read the articles of leading intellectuals, thought leaders, authors and activists from across the political spectrum. The Herland Report believes in freedom of speech and its editorial policy resides above the traditional Left vs Right paradigm which we believe has lost its relevance and ability to describe the current driving forces in Western politics.

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