An economist has warned that the recent collapse of California-based Silicon Valley Bank (SVB) was only the "tip of the iceberg" under the Biden administration's economic policy.
Freedom Works Chief Economist Steve Moore put in his two cents on the bank's failure during a March 13 appearance on Fox News. He warned the conservative outlet Harris Faulkner of a looming crisis that could hit the economy.
"I do think you have a lot of major banks that are in some trouble, and SVB … may just be the tip of the iceberg here," said Moore, a former adviser to the Trump campaign. He had earlier criticized the Democratic Party – which President Joe Biden is a part of – for its spending policies.
Moore pointed his fingers to inflation alongside Washington's excess borrowing and spending – all done under Biden's purview – for SVB's failure.
"It's not because there aren't enough bank regulators, as Biden is trying to say. It's because of the massive inflation and the trillions and trillions of dollars of borrowing that the federal government has done," he told Faulkner. "[This] has put our financial system in great jeopardy [and] in great peril."
"You can't just keep doing this month after month, year after year, borrowing trillions and trillions of dollars. And so what happened, because of the Biden spending and debt policies – not only did inflation go up but [also] interest rates."
The economist also warned that consumer and mortgage debt amounting to trillions of dollars undermined the nation's financial institutions. Moore mentioned the Federal Reserve's earlier moves to raise interest rates multiple times, with more such rate hikes to come.
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"That's caused a lot of financial problems for these big banks [as] the interest rates go up."
Woke policies also to blame for SVB's eventual failure
One factor Moore failed to cite, however, is SVB's pivot toward wokeism. In particular, one of its risk management heads focused on senseless programs instead of actually doing her job managing and minimizing the bank's risk. (Related: Silicon Valley Bank didn’t have a risk assessment chief for 9 months as it focused on WOKE diversity policies.)
According to the New York Post, Jay Ersapah – who heads the financial risk management department at SVB's United Kingdom branch – launched initiatives aimed at celebrating LGBT insanity. These initiatives included the company's first monthlong Pride campaign and a new blog that promoted mental health awareness for LGBT youth.
Ersapah, who describes herself as a "queer person of color," also instituted SVB's first "safe space" for LGBT employees to share their coming-out stories. She had also served as a director for diversity role models and a mentor for migrant leaders prior to the California-based bank's failure.
Bernie Marcus, co-founder of Home Depot, minced no words in pointing out that SVB's woke pivot led to its eventual collapse.
"I feel bad for all of these people that lost all their money in this woke bank," he told Fox News' Neil Cavuto. "It's pathetic that so many lost money that won't get it back."
Marcus chastised the Biden administration for encouraging the banks to be "more concerned about global warming than they do about shareholder return." He continued: "These banks are badly run because everybody is focused on diversity and all of the woke issues. Instead of protecting the shareholders and their employees, they are more concerned about the social policies."
The Home Depot co-founder ultimately warned that the U.S. is now in a recession, contrary to Biden's assurances that the banking system is "safe."
"Maybe the American people will finally wake up and understand that we're living in very tough times, that a recession may already have started. Who knows? But it doesn't look good."
Watch Tucker Carlson expound on the collapse of SVB below.
This video is from the Thrivetime Show channel on Brighteon.com.
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