Jim Rickards: ‘This Is The Biggest Bailout In History’

The Julia La Roche Show, Released on 3/16/23

Best-selling author Jim Rickards returns to the podcast for the third time to share his views on the collapse of Silicon Valley Bank and why the intervention — especially the Federal Reserve’s new emergency lending program, the Bank Term Funding Program — is the biggest bailout in history.

0:00 Intro
1:00 Reaction to SVB, Signature Bank failures
1:54 The mistake Silicon Valley Bank made
4:12 Bond Math 101
4:45 The Fed is between a rock and a hard place
4:52 Huge unrealized losses on the bond portfolio at SVB
6:35 There already was leakage
9:33 Friday’s press release from the FDIC
12:50 Global ripple effects of SVB failure
14:50 Other banks had similar problems
17:08 Biggest bailout in history
23:00 Executive stock sales
24:11 There would likely have been lines at banks
25:00 The biggest crybabies were the billionaires
26:15 The banking system is effectively nationalized
32:00 This was risk management 101
39:46 The Volcker mistake
40:50 Inflation
42:30 You’ll see the Fed expanding the balance sheet
43:30 Name your poison
44:10 25bps at the next Fed meeting is the most likely scenario
44:55 This is the no drama Fed
45:45 ECB
46:10 It’s a global economy
47:00 Panics have two stages
47:30 Credit Suisse
52:10 A road to ruin
54:35 Each bailout was bigger than the one before
55:30 A front based on confidence
58:30 Deteriorating trust in institutions
1:07:27 Gold

Jim Rickards is a lawyer, investment banker and economist with over thirty years’ experience in capital markets. He is currently Chief Global Strategist at Meraglim. He advises the Department of Defense, the U.S. intelligence community, and major hedge funds on global finance, and served as a facilitator of the first ever financial war games conducted by the Pentagon. A frequent guest on financial news programs, Rickards is also the author of The New York Times bestselling novels Currency Wars: The Making of the Next Global Crisis and The Death of Money. His latest book is Sold Out: How Broken Supply Chains, Surging Inflation, and Political Instability Will Sink the Global Economy.

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