The Dan Bongino Show - The Banking Disaster And The Media Coverup (Ep 1967)

Episode Date: March 13, 2023

In this episode, I address the troubling collapse of Silicon Valley Bank and what it means for you, and the economy. I also address the unadulterated liberal stupidity spewed about the crisis.  News Picks: Without Evidence, ABC's Martha Raddatz Blames Trump for SVB Collapse. Another bank is closed as the contagion spreads.  Bonuses were paid out before the bank collapse? The Biden team is giving mixed messages on the bank collapse. Copyright Bongino Inc All Rights Reserved Learn more about your ad choices. Visit podcastchoices.com/adchoices

Get ready to hear the truth about America on a show that's not immune to the facts with your host, Dan Bongino. So, anything going on today? Because there's no news whatsoever, this will be your home for the best in Oscars coverage where we'll get into all the details of who won. All the details of who won. That's good. That's funny. We will be covering none of it because I give exactly zero about who won anything at the Oscars. So that's the last we'll ever mention of it. However, it is probably one of the most important news days on a very sad note. We've seen in a long time because shockingly, stunningly, troublingly,

we're about to do the same thing we did 2008, 2009, 2010 and tank our entire economy again as if that didn't just happen. Like just happened, like a little while ago. The banking crisis, explain very simply. Don't miss this show today. Let me tell you something. What happens today, look at me, please, for a minute. What happens today is going to change the course of hundreds

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loungewear. Everything's backed by Tommy John's best pair. You'll ever wear it. It's free guarantee. Shop Tommy John's colorful new spring designs at TommyJohn.com slash Dan and get 20% off your first order. Save 20% right now at TommyJohn.com slash Dan. See site for details. Thank you, Tommy John. We'd love your products. All right, Joe. Big show today, as you know. So let's go, buddy. Kind of happy Monday, Dan buddy kind of happy monday dan kind of happy month yeah it's good to be back yeah i agree i mean you know listen i had a lady come up to me in church this weekend dan what are we gonna do how are we gonna get jacob chansley uh out of prison how are we gonna get biden out of office and i was an older lady but not very nice

and uh she sounded very depressed. And I said, ma'am, do you believe in the second creation? Because we just walked out of church. You worship Jesus Christ, right? You believe you're going to meet him one day? She said, yeah, I do. I said, so why are you depressed? Human beings from the time we've been homo sapiens sapiens have had to deal with other

evil human beings and have had to fix problems. We got a bunch of problems in front of us that hopefully we can fix. And that's our job to fight on. Don't be depressed. Folks, what happened over the weekend with SVB Bank? Let me explain it to you very simply up front. And then we're going to get into the details. And I'm going to show you how we are on the cusp and the precipice of causing another

great recession like we did in 2008-2009 if the same wrong moves are made. SVB Bank took in a lot of money, Silicon Valley Bank, which nearly collapsed this weekend, let's just say, collapsed and is about to ripple through the economy here on Monday. SVB, Silicon Valley Bank, took in a lot of money from the tech industry, the tech bros, okay? This is just very simply explained. Joe, stop me as the audience ombudsman if I get ahead of this. They take in a lot of money because they took in a lot of money very quickly. They didn't have enough of that money to loan out to make a good quality loan book. You don't want to make loans to people who aren't going to pay them back.

So you don't want to take risky loans. So they didn't know what to do with all this money, right? So shockingly, when I tell you this, your head is going to spin Reagan style from The Exorcist. They took a lot of that money and they bought a lot of government denominated assets, government bond type assets, right? And they took another large chunk of that money. And you're never going to believe this. They bought mortgage-backed securities. If you're like, wait, what? Huh? That kind of sounds like the housing crisis, great recession. You'd be correct.

What does a mortgage-backed security do? If you don't mind. It backs mortgages. Literally. No, no, I'm serious. A mortgage-backed security do, if you don't mind? It backs mortgages. Literally. Oh, is that what it is? No, no, I'm serious. A mortgage-backed security is a securitized asset based on people's mortgage. They buy up chunks of mortgages, and then people get paid. Okay. No, it's a fair question.

I'm not messing with you, but it's a fair question. A lot of people don't understand that. No, no. Please do. You are part of this show. So they bought a bunch of mortgage-backed securities, and they bought a bunch of government-denominated assets. Okay?

You got that? They get money from tech industry. They bought all this stuff. So what happened? Because the government decided it would be a good idea during the COVID crisis, and by the way, this is Republicans and Democrats, it would be a good idea to spend

ridiculous amounts of money. And Biden now thinks it's a good idea for a $6.8 trillion budget, running up trillion dollar deficits into the future. What happened? We printed a lot of money to pay for the deficits we were running up. Follow me. Print a lot of money. What happens? Inflation, because a lot of money is chasing fewer products and services. Okay? So what is the government and government-associated enterprises like the Fed? They're not independent. Don't believe the nonsense. What does the Fed then do? Well, the Federal Reserve, because we have an inflation crisis, raised interest rates. Why? Because they printed a lot of money that they now have to dry up.

Uh-huh. Yeah. So now, because they printed a lot of money, they now have to get back. They raise interest rates to make money more expensive. Joe Armacost needs a loan to start Joe Armacost Productions. Joe doesn't want to pay 10% for a loan. He'd rather pay two.

Right. So if Joe has to pay 10, Joe may not take the loan now because he can't afford 10% interest, just like you can't afford a home at a 10% mortgage. Drives up the money. That's how the government fights inflation instead of the right way, which would be to enhance productivity and let the free market do its thing. That's for another show. So now SVB Bank, which invested in a whole lot of

government-denominated assets at low interest rates, now has to deal with the government raising interest rates to combat the inflation crisis it caused. Are're sensing a common theme here joe the government with its tentacles and just i made that tentacle i shouldn't make where people send me emails i think i do it uh they think it's an accident with government you sense the government tentacles everywhere so now as interest rates go up svb bank silicon valley bank is stuck with a lot of

bonds and instruments they bought at a three percent interest rate so let's say we'll use an easy numbers here now why the hell would you want a three percent interest rate government instrument if the government now raised interest rates to 5%. Oh. Why would I buy your bond at 3? I could buy that at 5. So your bonds start to do what? Lose money. So SVB starts to lose money because of the government.

People start to catch on. People start to say, hey, this SVB is losing money, which leads a bunch of the tech bros and everyone else to come and try to grab their money at the same time, which collapses them. There's SVB explained in three minutes and 40-something seconds. I'm not really sure.

Okay, I got it. It made sense. So I hope the listeners did too. Yeah. I think they do. Now, I'm concerned here, folks. I'm concerned because we have unserious imbeciles in the media and in our government

on the Democrat and Republican side who now are sensing a crisis and they never let a crisis go to waste moment. They're going to use this opportunity to do what? What is one of my golden rules of the show, fellas?

What is every single thing in DC and the swamp viewed through the lens of? Anybody know? Anybody remember? How are we going to screw Trump? Yeah, yes. There you go, Armacost. He listens.

Very good. Of course. So despite the fact that potentially tens of millions of Americans may get worked over in the next coming days, and we may be looking at the Great Recession if this is handled wrong. Then the government screws up yet again. That's not what people in D.C. are focused on.

Like, gosh, how do we help out the mom and pop businesses that may get screwed over here? That's not what they're focused on. What they're focused on right now is blaming Trump. You doubt me? You should doubt everything. The difference between this show and other shows is I encourage doubt because I bring the facts to back it up. Here is hapless goon and hopeless loser, Martha Raddatz, another fake news specialist, doing exactly that. She goes on with Democrat Senator Mark Warner.

And the first thing out of her mouth, and by the way, credit to Warner, even though he's a Democrat and kind of a goofball himself, knee deep in the Spygate thing. Credit where credit's due. He doesn't fall for the trap here. Trying to blame Trump for a measure they put forward

to try to save mid-level banks from the too big to fail phenomenon that was destroying them on the regulatory front. I'll get to that in a second. But here's Raditz in short, trying to blame Trump. Take a look. Senator, after the financial crisis in 2008, regulations were put into place to make sure banks could weather large losses. Under President Trump, some of those were rolled back. And in 2018, you were one of only 17 Democrats who voted for the bill that rolled back some banking rules, including for institutions the size of Silicon Valley Bank.

Silicon Valley Bank was under closer watch, closer scrutiny before that bill was signed into law by President Trump. Do you regret that vote? Martha, I still think we put in place Dodd-Frank. I was proud to be one of the key authors of that bill. It strengthened the banking system. I do think these mid-sized banks needed some regulatory relief. End of the day, Martha, no matter what the capital had been in this bank, if you don't get Banking 101 straight, if you don't manage your interest rate risks if you've then got a run at

42 billion dollars in a single day unprecedented you know when you say to yourself how is it that 50 of america keeps voting democrat you can blame idiots like martha raddatz she's just you understand she's just fabricating out of whole cloth a narrative that donald trump did it and this was some kind of regulatory failure so to all the idiot loser moron liberal dunces the terse words are hard for you the show's not for you i have no time for liberal idiots in the middle of a pending financial crisis if lying about trump and regulatory relief is more important to you than solving this crisis right now then please plant a big wet one on my ass because this show is not for you martha raddatz can't point to a single regulation what regulation did

svb bank violate please can you tell me? Because the liberal bots on Twitter are all over. Trump did it. Deregulation. What regulation? What? Wait, anyone? Do you know? Joe, you know what regulation was? You don't know. Oh, you don't know either. Oh, but it's because there isn't one.

She's making that up because she's a hack and a goon and a life loser. This was a very simple crisis, largely but not solely caused by government and government spending. It was maturity mismatches. They bet long and borrowed short and they did not hedge. It is that simple. They took in a bunch of money. They made a bad bet on interest rates. It was nothing illegal. They didn't violate any rules. And they lost because

the government spent a lot of money and interest rates started wildly fluctuating upward. Now, Raditz is either too dumb, or I'd argue the latter, too manipulative and phony to tell you the truth, that this crisis is caused by the big government she wants more of.

The reason Donald Trump and his team got rid of some of those banking regulations was very simple. It was causing a two-tiered banking system where the big guys, the big banks wanted more banking regulations. Wanted? What are you, an idiot there? No one wants more regulations in their industry. No, you're wrong. Huge, enormous companies and the businesses love this stuff. Why? You guys know why they like this stuff? They love this stuff for a simple reason. They've got armies of lawyers who can do this stuff like that, comply with the regulations. And who can't do it?

Oh, the mid-sized competitors. So what do they do? Because they don't have these armies of lawyers like the big banks. The big banks do what? They come and gobble them up. They love regulations. That's what this was doing. That's why the Trump team got rid of it.

And they didn't like taxpayer bailouts either. There's nothing to do with it. There's no regulation violated here. Here's Stephanie Ruhle, who I got to tell you, I thought better of. I mean, she's at MSNBC, which automatically is kind of a laugh. But of all the people over there, she seemed like the least crazy. And she's not dumb either. Here's Stephanie Ruhle on Twitter in a tweet that's since been deleted, by the way. You'll see why in a second.

Here she is with Joe, quote, an important reminder, all caps. In 2018, Republicans voted in unison to roll back bank risk oversight rules. Silicon Valley Bank lobbied hard to make this happen and won. Now some of those same Republicans are demanding all Silicon Valley clients be made whole immediately.

This is hilarious. Pinning this on the Republic. This is hilarious. Hilarious. But wait, here's the same Stephanie Rule back just four years ago saying how awesome it is that they rolled back these regulations, which were an unnecessary burden on middle income banks and we're giving big banks an advantage. This is the same person. Here, take a look. So what does the new legislation do? It raises the threshold from $50 billion to $250 billion in which banks are deemed too

big to fail. These banks will not have to undergo stress tests to prove they can survive another economic freefall. And it leaves fewer than 10 big banks in the US subject to stricter federal oversight. Joining me now, CNBC editor at large, John Harwood. John, I'm just going to start with, I think this is a really good idea. In 2008, 2009, I worked in investment banking. I was in the gnarliest part of the business in structured credit derivatives. And banks took way too much

risk and we didn't have enough cash and reserves. But when Dodd-Frank was put into place, it brushed every bank in the same way, and we were subject to regulatory capture. So those massive JP Morgans of the world, they can afford to hold more capital. They can hire 1,000 more compliance officers. But if you ran a small or mid-sized bank that predominantly did loans in the Midwest, you couldn't possibly afford that. And they were the institutions that got strangled. What's the point, guys? What's the freaking point point he's sitting over there joey's like this is ridiculous you understand stephanie rule you heard that clip you cut it she said the same

thing i just told you yes she's right she's right four years ago before trump derangement prions infected her brain and caused her to say stupid things in direct contradiction to her own words. What she said there is correct. The reason Republicans and some Democrats wanted red tape relief in the financial business here was because some of these oppressive red tape rules were benefiting big banks. She gives you the fancy term called regulatory capture.

Not too fancy, but I like to keep the show without getting too wonky. People talk in jargon and wonkery to make themselves sound smart. That's my experience. I learned this in business school. They love jargon. It's like a password for them. It's called regulatory capture. It's not complicated. A lot of these big business people, there's a cycle between government employees that go work in Goldman, investment banks, and elsewhere. And what they do is they scratch each other's backs. These big banks love these regulations

because as she just said, they have armies of lawyers out there, armies of them that already do this stuff. They don't care. It puts their midsize competitors out of business because they can't afford 50 million a year in legal expenses. She just said it. And now she's saying the same thing. The same regulation is a bad thing.

Why? Because she works at MSNBC. Blame the GOP. So what really happened here? I gave you kind of the four-minute primer in the beginning there. Interest rates went up. Silicon Valley Bank made a bad bet on interest rates. They made a bad bet. I say they made a bad bet because everybody on planet Earth knew interest rates were going to go up. Why?

Because the Fed said interest rates were going to go up because inflation was exploding. How did this bank not know that? I'm going to go through the details now in a little more, in a great article

by the Wall Street Journal. I'll make it quick, but we'll describe exactly what happened by the numbers. So you know I'm not just like pulling this out of my rump. Like this is what happened. Let me get to my second sponsor first.

Folks, we're going to give you the facts. Republicans played a part in this too. I'm not going to do talking points like Stephanie Ruhle. They spent a lot of money too. And that's at the cause of this whole thing. Helixsleep.com slash Dan. What are you going to get at Helix Sleep? You're going to get better sleep starting today.

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not because I needed an MBA, because I just love this stuff. I live for it. So I read probably 20 or 30 articles from everywhere, CNBC, Wall Street Journal, and elsewhere. And I tried to say to myself, if I was a listener who wasn't into the wonkery and wanted this explained simply, what's the best article, this is it. No doubt about it. Wall Street Journal, Andy Kessler, who killed Silicon Valley Bank? He says, let's go back. This is what I told you before about the tech bros pouring their money, Joe, unsurprisingly, into a bank called Silicon Valley Bank.

It's not hard to figure out. You might as well call it Tech Bro Bank, okay? So he says, let's go back. In January of 2020, SVB had 55 billion in customer deposits on its balance sheet. By the end of 2022, the number exploded to 186 billion. That's a lot of dough. They say, yes, SVB was a victim of its own success, according to Kessler. These deposits were often from initial public offerings and SPAC deals. Those are special purpose acquisition deals, reverse kind of merger deals. SVB banked almost half of all IPO proceeds in the last two years. So SVB, bottom line, had a lot of money coming into the bank.

He notes a lot of these startups had relationships with the bank. In two years, as I said to you in the beginning of the show, massive influx of money from $55 billion to over $180 billion. So he notes, Kessler, that there was no way Silicon Valley Bank was going to initiate $131 billion in new loans. They had roughly $50 billion. An influx of 180 billion comes in. So there's 131 billion more that comes in. At least that 180 billion. What were they going to do with it? So the bank put some of the new cash into higher yielding long-term government bonds. Oh boy, here we go.

And 80 billion, get a load of this one, folks. 80 billion into 10-year mortgage-backed securities paying 1.5% instead of short-term treasuries paying 0.25%. What's the problem there? This is where I use the term, and maybe I shouldn't be talking in jargon if I'm going to call out jargon. This is what maturity mismatches mean. If I borrow short, Joe comes to Dan's bank and deposits $100.

Joe can take it out anytime. So I'm borrowing short. Joe can literally come back later in the day and say, I want my $100 at an ATM. Okay. That's the shortest borrow ever. He can walk out of the bank and get it at the ATM the same day. I changed my mind. But if I then take that $100 and go buy a 10-year government bond at 1.5%, yeah, I'm making money on Joe's money at 1.5%. The problem is Joe can take it out anytime because it matures in 10 years. I'm not as liquid. It's a liquidity crisis. If people make a run on the bank,

which is what happened. How did they not see this coming? They bought a bunch of mortgage-backed securities, not understanding that Joe, what's one of the primary factors when you buy the house, when you buy a house or a car? The interest rate. Certainly. Joe's going to buy a house at 3% and a mortgage, which is really low.

He's going to buy a whole different house at 10%. It's going to be smaller. So when interest rates went up, these people didn't sense that these mortgage-backed securities may be in trouble. If this sounds suspiciously like the housing crisis that's because it is this is why i'm telling you what happens today could change the world and i don't mean that in a dramatic way i mean it actually one more from the uh andy kessler piece silicon valley Bank got caught with its pants down as interest rates went up. Apparently, everyone except SVB management knew interest rates were heading up. Fed Chairman Jay Powell has been shouting this from the mountaintops.

Yet SVB froze and kept business as usual, borrowing short-term from depositors and lending long-term without any interest rate hedging. Keep blaming Trump. Trump told him to do that? Folks, if you're saying to yourself, gosh, that sounds like really bad, horrible, atrocious, terrible, grotesquely mismanaged assets, that's because you're right. grotesquely mismanaged assets,

that's because you're right. So equity holders and bondholders who invested in this bank, their wealth is going to be destroyed. Why should we as the taxpayers have any role whatsoever in fixing this disaster? But Dan, it's going to cause a lot of pain. Folks, listen, man.

I don't know any other way to tell you this. If you are looking for a show that is going to speak to you as if you're idiots, then this isn't it. The pain has already been caused. For 20 plus years, we've been spending money we don't have. The money has to come from somewhere. The money is now coming from you in the form of inflation

and businesses being destroyed as they dry up the money supply with interest rates going up. It's not a question of who's going to feel pain. We're all going to feel pain. The question is, are we going to fix this problem and let the creative destruction process happen where bad investments get destroyed and the creation of a good, more prosperous economy based in value moves forward? Or are we going to continue to do this bailout thing we did after the recession,

prolong the misery until the entire economy gets wiped out and everybody goes down with the ship? Your call. Your call. We're creating a two-tiered economy right now right now understand that if you're in a big bank you're perfectly safe right too big to fail if you're in a mid-sized bank the local mom and pop bank or regional bank they're gonna let you go under We did this. Now, why are interest rates going up? That is what's, it's not the only reason, but it is the primary reason that this bank went under and is about to screw over the whole economy. Interest rates are going up simply because government spent money it didn't have, which caused a massive inflation crisis,

which is causing the government now to hike interest rates to dry up the money supply. Here's the stunning part, that while imbeciles like Martha Raddatz and just shamelessly Stephanie Ruhle try to blame Republicans for this, you have a group of conservative, libertarian, and MAGA-oriented Republicans in the House begging the Biden administration to cut spending before this catastrophe continues, and they won't do it. We are running, this is the Titanic, with the iceberg straight ahead, and nobody's making any deviations from the course at all.

This is the most predictable financial crisis you are going to see in American history. I'm calling it today and it's happening again. We can fix this thing tomorrow. Here, you doubt me? Read this article in my newsletter. White House launches a full court press against the House Freedom Caucus's debt ceiling demands. Quote, MAGA House Republicans are proposing it spread evenly across affected discretionary programs, at least a 20% across the board cut, the White House press release said. yeah so the republicans the mega republicans as you call them by the way they should be proposing a 40 cut if we really want to head off the financial disaster coming our way the white

house is wants to spend more money we don't have which is causing the crisis we're seeing right now and they're attacking republicans for trying to stop it and you're okay with that. Where's Stephanie Rule on that one? Attacking us. That's where she is. Attacking us. I want you to explain one thing if you are a liberal listening to this show. Just one thing.

Get your head out of your ass for a minute and explain one thing to me. Explain the role of interest rates in this crisis if you're smart enough, you listen to the show. And second,

explain to me what specific regulation this bank violated and how that applies to Trump. You can. You may try to do the first, but you won't because you'll cut the government out of it. The second, you can't because there's no answer to that. Folks, tell the truth to the media people out there. Just tell the truth. Please tell the truth. Just tell the truth that the media people out there. Just tell the truth. Please tell the truth. Just tell the truth that the government did this and it's about to do it again by bailing these people out. They want to spend more, by the way. I'll show you in a minute what I mean.

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It's got a bold, really strong flavor. I love it. Blackoutcoffee.com slash Bongino. Okay. The stunning thing about this whole crisis, again, caused by interest rates going up because the government spent money. Just don't forget that. Is the Biden administration wants to spend more money basically just sticking the knife in first. It's got like a blood gutter

on it, this knife too. And then not only that, do they want to spend more money? They want to attack people trying to stop the blood loss. Here's a Wall Street Journal piece, Social Security and Medicare, which are bankrupting the country right now. There's no disputing that. We could dispute country right now. There's no disputing that. We can dispute the fixes, but there's no disputing it. They don't want to do anything about Social Security or Medicare. Scott Hodge, Wall Street Journal, Biden budget refutes itself on Social Security and Medicare. The Biden budget's attacking Republicans saying, hey, if we hike the taxes, we can fix Medicare

and Social Security. Really? That's shocking. Because as Pete notes, Medicare outlays are expected to total more than 12.5 trillion, while revenues over the next 10 years are expected to total 5.8 trillion.

So there's a $6.7 trillion gulf between the two? They're saying the difference will come out of general tax revenue. Yeah, really? Wall Street Journal, that's some pretty magical accounting there. That's where you're going to get that money from. Social Security is just as bad. We don't have any money. They just want to keep spending.

There's an enormous gulf in Social Security too. When it comes to Social Security, the Biden budget makes no changes, as they promised. Yet over the next decade, Social Security outl When it comes to Social Security, the Biden budget makes no changes, as they promised. Yet over the next decade, Social Security outlays are going to total $19 trillion, while revenues will total $15 trillion. So there's another $4 trillion gulf there. So we're talking about over $10 trillion in money

we don't have that we're going to spend. Don't kill the messenger, folks. I'm simply telling you, when you spend money you don't have like we are in these programs because they're not balanced they're not means tested the retirement age isn't moving when you spend money you don't have the money's got to come from somewhere where is it coming from now it's coming from you in the form of inflation and bank collapses and potentially the loss of trillions of dollars of stock values. The economy goes down the tubes in the next few days if the government doesn't stop

the bleeding now. Now, you think the Biden administration has a solution for the Social Security, Medicare debacle they cause? There are solutions and ways to shore it up. Nope, they don't want to touch anything. All right. Here, listen to them tell you themselves from the Brady Press Room. Check this out. The thinking is that Social Security only has about 12 more years of solvency left. This seems like a good opportunity, isn't it, with divided government, for the president to make a proposal, hope for a compromise? He doesn't seem to be interested in doing that. Well, you assume the debate is from cutting no benefits and moving forward. We're trying to protect the benefits that are there now.

I wish we were at the point of the debate where we could sit down and come up with proposals to extend. Unfortunately, it is clear that some people want to go backwards. We're saying this president, which he has said over and over, will not accept benefit cuts in the Social Security program. That's fine. You can keep borrowing money as the benefit cuts come in the form of inflation.

So yeah, you'll get the same Social Security check just instead of it buying you sirloin or New York strip, it'll buy you cat food and dog food because there's no money. Again, we can fix it. They just don't want to. Now, never let a crisis go to waste right get ready for the government because the government now has become a massive censorship soviet style outlet which liberals and media people love get ready for the government to start censoring information also to prevent you from speaking the truth i just did i expect this

show to probably be censored about the banking industry and the government's in the uh the government intervening to shore up uh and basically bail out people who made terrible bets here get a load of this there was a zoom call last night tom massey a good uh really good congressman was on it and as mike ben's notes he said that there's already an effort by CISA, that government censorship board, Pravda, that CISA's already looking to censor financial misinformation about the crisis.

Joe, these people can't stop, man. It's right there. Protecting critical infrastructure from misinformation and disinformation. There it is right there. The spread of false and misleading information. Financial services is included in there. They never, ever let a crisis go to waste.

There it is right there, such as the financial system. That's Nat Massey's note. More misinformation, disinformation. They can't stop. They can't stop. Elections, you're not allowed to talk about. Vaccines, can't talk about. Masks, can't talk about COVID. Can't talk about Biden not allowed to talk about. Vaccines, can't talk about. Masks,

can't talk about COVID, can't talk about Biden, can't talk about Hunter. Now you can't talk about the banking crisis the government caused. You'll be censored for misinformation. If you're like, man, that sounds kind of Soviet, that's because it is. Even though he's tired, he popped to attention. Had to cut something out. He was like, he was on the ball of it. Kind of missed it. Now he popped to attention. Had to cut something out. He was like, he was on the ball of it. Kind of missed it. Now he popped to attention right when he heard the sub. It makes me a little worried.

He popped right to attention on that. I kid. This guy's a freedom lover, just like me. The irony here too, by the way, of this whole thing. The two-year treasury is just dropped. Oh God, I don't want them to debate and get into this. Just let me deal with this for a second because it's important. So because people are terrified right now, where do they fly to?

They fly to government assets. The irony of this whole thing is the interest rate on two year government assets just dropped by a historic number because so many people are buying them. They dropped the interest rate, right? It's for obvious reasons here. Okay. So the interest rate dropped on this thing. The irony of this whole thing is that SVB, remember the higher interest rates hurt them. If SVB wouldn't have had a bank run, it wouldn't have caused the interest rates to drop. SVB could have been solvent by today just because the interest rates are now back down

because people are flying into government bonds to buy them. So the government, why did the interest rate go down? Because the government doesn't have to pay high interest rates if they got a lot of customers buying their product. I should have said that at the beginning. Which the irony of this is, it's going to encourage the United States government as people fly into government bonds, flight to safety, Joe, and they don't have to pay high interest rates because so many people

want to buy them. It's going to encourage the United States to do what? To borrow even more at the low interest rate. You're like, I can't believe we're doing this again. We're doing this whole government-caused financial crisis. The answer is yes, we are. By the way, watch very closely, very closely, because they never let a crisis go to waste. Watch very closely as they start to push for a central bank digital currency now. Oh, yeah. That's coming next. He says, perfect opportunity. You're damn right it is. If we had a central bank digital currency, Joe, we just could have avoided these bank runs. He says, perfect opportunity. You're damn right. It is. You know, if we had a central bank, digital currency, Joe,

we just could have avoided these bank runs. I mean, we could have digitally controlled the flow of capital and none of the, if Woody would have went right to the police, none of this would have ever happened. You watch Joe. We haven't flagged it. So please flag that Monday,

March 13th, eight 43. If you would, but you haven't flagged anything in a long time. Got it. Okay. Okay. Yeah. Let me get to something else here.

I'm going to get to my last sponsor, but it's really incredible, again, how the libs and the goons in the media and the losers and zeros in the Democrat party, they whined and moaned. Remember, Joe, after the financial crisis you and I lived through, and we knew each other around as we were suffering the outcome of that. That's when I met joe early on remember the libs they were doing movies and everything but too big to fail yeah we bailed out the big bank remember it's so interesting how they they want to do it again i thought that was a bad thing but now they're clamoring for the government to get involved and

fix the problem again i thought too big to fail was a bad thing. It's so crazy that the liberals out there are now calling for too big to fail to apply to banks that weren't even considered too big to fail. Basically, I thought we weren't bailing banks out. I thought we weren't doing that. Oh, we are because your president's in the White House and you want to make him look like a buffoon.

I get it. I think about politics. Not about principles. I'll get to that in a second. My last sponsor, mypatriotsupply.com. Let me go off. Just for a second. My Patriots, I hope you don't mind. You know, a lot of their ads are about preparedness.

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Here's what I mean, folks. I was talking about before how you can never trust liberals. Whereas on this show, I always promise you the truth. I don't care if it reflects poorly on the Republican Party. What I care about are conservative values. Republicans have spent money we don't have to. I said that to you. I've now said it for the third time in this show, maybe more. We played a role, not we in the listening audience,

this party. They have not had their heads out of their asses for years either. The Democrats will never tell you the truth about anything, ever. They did movies. I don't even know the name of that movie. That movie that won everybody. Oh, look at this. They bailed out the big banks and the housing crisis. Taxpayers had, they're arguing for the same thing right now. New York Post regulators closed signature bank. The second shuttered by the feds after the SVB disaster. Now they're saying we're going to protect uninsured depositors. You may say, well, uninsured depositors, what's that? You know, the FDIC secures your deposits in a bank, an FDIC bank, for up to $250,000. Folks, I'm going to tell you, please, this is not a hey, look at me moment at all.

I'm telling you, I'm at risk. I have accounts with more than that, banks, because of my business and everything else. I'm not, please, I'm not trying I'm at risk. I have accounts with more than that banks because of my business and everything else. I'm not, please, I'm not trying to, really. I'm just trying to explain to you, I've got skin in this game. I've got real skin in this game. Like a lot of money at stake. And I'm telling you, I don't want your bailouts. Nobody, no person in America who works for a living and has a $30,000

balance, $10,000 balance in their bank account, or a thousand living paycheck to paycheck, nobody should be paying me off. I knew the risk. I have my money in these financial institutions, and I understood fully and clearly when I signed up what was insured and what wasn't. If those banks go under, that's my fault. That is my fault. It's not yours. So I find it ironic that in order to protect their failed rotting bag of oatmeal in the White House, corrupt Biden Inc. is zero in the White House. That in order to protect him, they're arguing for bailouts of a banking system that's going to benefit people who have balances way above 250,000. But Dan, that's a lot of businesses too. It is, folks. But don't you

have a business? So just to be be clear your business is supposed to bail out other businesses that knew the risk somebody's gonna pay so the businesses that put their money in those banks they shouldn't pay but you should because you didn't does that make any sense folks i spent the whole weekend worried about this thing. I did my show on Saturday. Once the show aired on Saturday night, I was done. I realized this was going to get ugly with Silicon Valley Bank. I've been stewing on this all weekend. If this thing gets ugly, I promise you, I stand to lose an enormous amount of money. I don't want your bailouts. It is just going to encourage people to do stupid things in the future. Not when big

daddy government has their back. And the media will never tell you the truth. Remember when George Bush was in office when the recession started due to the housing crisis and they couldn't stop writing about the catastrophe in the apocalypse? The Biden protection racket. Here we go. AP, Ken Sweet, a major bank field. Here's why it's not 2008 again. You see how they play up or play down the panic, depending exclusively not on the facts and circumstances surrounding the panic. But who's in the White House? I promise you, if Donald Trump was in the White House? I promise you, if Donald Trump was in the White House, I promise you that headline would read completely different. Bank catastrophe. The country goes down in flames. Vote Democrat. All right, folks, I hope that explains for you what happened. This is a government-caused crisis. It is not the only reason. And listen, one more thing, too, just to the conservatives out there. Yes, this bank was involved heavily in a lot of woke, excuse me, DEI kind of ESG nonsense, too. They didn't even have a risk officer. And that had something to do with it. They were probably distracted.

And that had something to do with it. They were probably distracted. But don't let that narrative distract you. Because it is. It's a story. They've been putting way too much weight in this. From the real reason this government went, this bank went down. That's because of the government.

There's no doubt about it. The government spent money. The bank didn't expect the interest rate hikes because the government spent money. And there was maturity mismatches and a liquidity crisis because of it. Showing you these hack media types to moving on to a different story. We played the January 6th videos or portions of them that were covered on the Tucker Carlson show last week. It was really shocking information in one of those videos specifically. The shocking information was about Jacob Chansley.

They call him, which I think is ridiculous, the QAnon shaman, the guy in the horns outfit. Now, Chansley, whatever he did on January 6th in violation of the law, if you broke the law, you broke the law. That's fine. I want to see the whole portfolio of videos, the bad stuff and the good stuff. But some video emerged that is clearly exculpatory with Chansley being escorted around, which gives him a reason to say in a court of law, hey, I thought I was entitled to be there.

The Capitol Police were walking me around. Now, in any normal functioning society where the media people were telling you the truth out there and not trying to blame Republicans for everything, in any normal functioning society, someone would say,

my gosh, we should have seen this video. For as much as I disagree with jacob chansley whatever it may be if you're a lefty saying that right for as much as i disagree with him he's entitled to due process you would think the media people of all would be the ones jumping to this man's defense nope that's why you're never going to get the truth on any other place this This is why I love being here with you. Here, the Hill. Tucker Carlson comes up short on January 6th bombshells. The Hill. What do they do? They take a shot at the Jacob Chansley video. Hey, there's other stuff. Showing him doing something wrong. Okay, great. Let's see that too. Let's see that too. Here's more Democrat media buffoonery. Got to squeeze some more stuff in at the end of the show. Sorry, this is important stuff.

Here's Michigan Governor Gretchen Whitmer, a ridiculous hack, a total life loser herself. Here's Gretchen Whitmer. Remember, trust the science, fellas. Trust the science on COVID. Here's Gretchen Whitmer being asked a question by Chris Wallace, formerly of Fox. Chris Wallace is like, hey, listen, the CDC, by the way, these are CDC numbers. The death rate in your state, even though you lock down your state of Michigan, like a totalitarian Soviet, it's a lot worse than Florida's. Then she's like,

ah, I don't believe those numbers. Trust the science, unless they say you don't like. Check this out. Michigan was one of the last states to lift a cap on public gatherings in June of 2021. By comparison, Florida lifted its cap in September of 2020. But the death rate for Florida from June of 20 to June of 21 was 39.6 per 100,000. The death rate for Michigan was 97.3 per 100,000, so more than double. Why did Florida do so much better without the cap than Michigan did with the cap? I've seen a lot of reports about some of the numbers

that you've just cited from Florida and perhaps the lack of confidence in the action you know in the accuracy of them I don't know I'm not going to weigh in on their policies I'm going to tell you I listen to the best experts in the world dude come on that's one of the best clips we're going to play this year I know it doesn't seem it's not dramatic that less screaming and yelling these. This is the trust the science crowd. She's given, she's a big government leftist.

She's given CDC data. Last time I checked, that was a federal government entity. Just CDC data showing her state absolutely blew it on the lockdowns and she doesn't believe the data. I don't trust any. Okay, whatevs, man. Here's one.

Maybe he says, maybe we need different experts. Right. Here's one more. This is bad. This is. So if you're listening on audio alone, you're just going to hear kind of the ruckus, but it's about 15 seconds. I cut a little short.

Folks, what's happening at the border is getting really dangerous. This is video of something that went down in El Paso this weekend. About a thousand immigrants trying to enter the country illegally to break or learn, like bum-rushing the border at the same time. Listen, what you're watching here is criminality. And if word starts to spread, ladies and gentlemen, that this is possible, to bum-r rush the border thousands at a time, I've got news for you.

That's going to bode really, really bad for national security, because what does this look like to you? Here, check this out. I asked the liberals out there, because your brains because your brains are like, you know, peanuts and skulls, lead skulls surrounding the facts from getting. Does that look like an invasion to you? It certainly looks like it to me. Word spreads fast. You better handle this.

All right, folks, thanks again for tuning in. I really appreciate it. If you wouldn't mind, please subscribe to the podcast. All right, folks. Thanks again for tuning in. I really appreciate it. If you wouldn't mind, please subscribe to the podcast. It is absolutely free. Helps us stay on the charts. We've been in the top five in Apple and Spotify in our category for a while now, thanks to you. So go to Apple, Spotify, click that subscribe or follow button.

It is free. And then, of course, on Rumble, trying to get to 3 million subscribers. We're at 2.6 million. It's rumble.com slash Bongino, the exclusive video home of the Dan Bongino show here. Thanks a lot. And I hope you enjoyed the live chat today. Always at 11 a.m. Eastern time.

I'll see you all back here tomorrow. You just heard Dan Bongino.