White House propaganda machine Politico wasted no time in trying to cast President Joe Biden as the savior of Silicon Valley startups by praising his ridiculous federal "bailout" plan.
Politico was off to the races in its ridiculous Mar. 13 story headlined: “How Biden saved Silicon Valley startups: Inside the 72 hours that transformed U.S. banking.” The first paragraph made the entire article sound like the plot of a Mission: Impossible script: “On Sunday afternoon, an exhausted group of Biden administration officials gathered to put the finishing touches on a hastily composed plan to stave off a nationwide banking crisis.”
The collapse of Silicon Valley Bank and Signature Bank, according to Politico’s spin, “trigger[ed] a weekend sprint [by Biden officials] to contain the fallout that spanned several agencies and all hours of the day and night.”
The new federal scheme, Politico fawned, “would provide SVB’s depositors with access to all their funds, effectively averting painful financial uncertainty — and the threat of heavy losses — for thousands of venture-backed startups.”
The outlet even propped up how the inflation stimulating Federal Reserve “would single handedly give all other similar lenders access to funds designed to keep them afloat and quell the panic brewing across the country.” The devil wears pravda. MRC Business Vice President Dan Schneider said in a statement that "Biden may have saved the skins of his biggest financial contributors, but at a cost to the U.S. economy."
What "makes the American economic engine so powerful," said Schneider, "is free market competition, not government handouts." The words of late President Ronald Reagan ring true: “The nine most terrifying words in the English language are, ‘I’m from the government and I’m here to help.'”
Politico dishonestly attempted to make Biden seem prudent in his scheme to guarantee depositors' funds above the $250,000 limit by the Federal Deposit Insurance Corp. The outlet followed the president’s lead and deflected away from his plan being labeled a “bailout.”
“Biden began the weekend highly skeptical of anything that could be labeled a taxpayer-funded bailout,” Politico claimed. “That would be a serious political risk for the president given that many of SVB’s customers were start-up entrepreneurs and investors with so much money deposited in the bank that they far exceeded the federal government’s $250,000 insurance limit.”
Front page of Politico is Democrat agitprop in full gear right now. Politico praising the man who caused the banking crisis as its savior. pic.twitter.com/j0RHwmqCjL— Mollie (@MZHemingway) March 14, 2023
But Politico’s obvious pandering for the Biden administration is just flat-out absurd. As Massachusetts Institute of Technology Economics Professor Simon Johnson reportedly told The Washington Post: “‘Disingenuous: that’s the right word to describe anyone (Treasury official or not) who claims the [Deposit Insurance Fund] is not ultimately backed by the taxpayer.’”
The Wall Street Journal Editorial Board pointed out that what Biden and the Fed were doing constitutes a “de facto bailout of the banking system,” in order to cover up the fact that “SVB’s failure is the bill coming due for years of monetary and regulatory mistakes.”
The Washington Times even called Biden’s plan “the most extensive government intervention in the banking system since the 2008 financial meltdown.”
Johns Hopkins University Applied Economics Professor Steve Hanke also was not buying the Biden administration’s and media’s gaslighting. Hanke told The Times: “‘With the Biden bank bailout, and it is a bailout, banking is becoming a government-backed business — if that’s what you call a business.’” He continued: “‘And if that’s not bad enough, the Biden administration has just injected another massive infusion of moral hazard into the banking system, as have past Republican and Democratic administrators. Who picks up the moral hazard tab? Taxpayers do.’”
Apparently this was all lost on Politico, because it didn’t bother to raise the “moral hazard” question until the 26th paragraph.
Conservatives are under attack. Contact Politico at 703-647-7999 and demand it stop acting like White House pravda.