Sponsored Content
« Daily Tech News 13 March 2023 | Main | Mid-Morning Art Thread »
March 13, 2023

The Morning Report — 3/13/23


Good morning, kids. With everything going on in the world, whoever had a nationwide run on the banks on their scorecard for today, you just won a 1978 Chrysler Cordoba! Go pick up the keys in Morty's office.

Silicon Valley venture capitalists are screaming for a bail out in response to the recent sudden collapse of Silicon Valley Bank — the second-largest bank failure in history, behind the collapse of Washington Mutual at the height of the 2008 financial crisis.


Entrepreneur Joe Lonsdale insisted that he is “opposed to bail outs,” but nonetheless flirted with the idea of one for the Silicon Valley Bank, tweeting, “Am curious if the innovation world is the only part of our economy that doesn’t deserve a depositor bailout?”

“And can’t help but ask how many equivalent aid packages to Ukraine (0.5 of them?) it takes to resolve the crisis impacting thousands of promising US technology companies,” he added.

I read that first paragraph and honestly, I'm just numb at this point. I echo the sentiments about bailouts but this guy is right over the target about Ukraine. How many hundreds of billions have we dumped in that steaming sewer of graft, grift and Burisma? Meanwhile, Janet Yellen, who is the Mayor Pete of Tim Geithners had this to say:

“Let me be clear that during the financial crisis, there were investors and owners of systemic large banks that were bailed out,” Yellen told Brennan when asked whether the U.S. had ruled out a bailout."“And the reforms that have been put in place means that we’re not going to do that again. But we are concerned about depositors and are focused on trying to meet their needs. . .” 

. . . Fox Business Network senior correspondent Charles Gasparino reported depositors would initially receive 30 to 50% of their money on Monday, and “most of the rest” in time, citing sources familiar with the matter. 

The implosion of SVB would mark the largest bank failure since Washington Mutual collapsed in late 2008, according to Axios.

With regard to potential failures at other banks, Yellen argued that one bank’s troubles don’t necessarily mean similar problems for another. She said “supervision and regulation” will help prevent “contagion.” 

"Contagion." There's a word that I do not want to hear, but only marginally less so than the phrase "Let me be clear." Hey, I'm no Milton Friedman but banks just don't collapse. Perhaps it's malfeasance and criminality on the part of the executives, which given the fact that banks are arguably the most regulated industry in the nation, that alone might not be the cause. If we go back to 2008, the housing market collapsed thanks to the government mandate of banks having to give loans for poor people to buy homes that they could never afford to pay back. And so the banks came up with the mortgage-backed security Ponzi scheme, and the rest is history. Ironically, here we are again discussing yet another disaster with its root causes in government malfeasance, incompetence and more than a mere soupçon of cronyism to boot. Or Buttigieg as the case may be.

When the story of why Silicon Valley Bank was taken over by the FDIC is written, the role played by policies that sacrificed fiduciary responsibility for wokeness should be examined.

Home Depot co-founder Bernie Marcus is hardly a right-wing nut or a religious fanatic. He’s a hard-headed businessman who’s disgusted with the Biden [junta's] emphasis in the financial sector on DEI.

“These banks are badly run because everybody is focused on diversity and all of the woke issues and not concentrating on the one thing they should, which is shareholder returns,” Marcus said. “Instead of protecting the shareholders and their employees, they are more concerned about the social policies. And I think it’s probably a badly run bank.”

While SVB was circling the drain, Jay Ersapah, the boss of Financial Risk Management at SVB’s UK branch, launched woke initiatives, including the company’s first month-long Pride campaign and a new blog emphasizing mental health awareness for LGBTQ+ youth. “As a queer person of color and a first-generation immigrant from a working-class background, there were not many role models for me to ‘see’ growing up,” said Ersapah.

Her efforts as the company’s European LGBTQIA+ Employee Resource Group co-chair earned her a spot on SVB’s “outstanding LGBT+ Role Model Lists 2022,” a list shared in a company post just four months before the bank was shut down by federal authorities over liquidity fears.

In addition to instituting SVB’s first “safe space catch-up” — which encouraged employees to share their coming out stories — and serving on LGBTQ+ panels around the world, Ersapah also spent time over the last year serving as a director for Diversity Role Models and volunteering as a mentor for Migrant Leaders.

The bank was abruptly shut down after it revealed that it had taken a $1.8 billion loss from a $21 billion sale of its bond holdings. When the company was unable to raise enough cash, the federal government closed its doors.

Bernie Marcus felt sorry for depositors who lost almost everything. “They’ve been there for a lot of years. It’s pathetic that so many people lost money that won’t get it back.”

Meanwhile, for eight months, SVB did not have a chief financial risk officer. From April 2022, when Laura Izurieta left the job, to January 2023, when Kim Olson was hired, the company had no one whose ultimate responsibility was to gauge risk.

But it’s the woke policies, epitomized by Ersapah’s preoccupation with her image as an LGBTQ crusader, that drew a lot of criticism.

Speaking of a run on the banks, funny, how the usual suspects are going apeshit over the prospect of SCOTUS rejecting the near trillion-dollar youth vote-buying scheme of student loan forgiveness. But I digress.

If you think SVB is a one-off, all you have to do is look at Disney, Coca Cola, Nike, Apple, and hundreds of other companies large and small, not to mention our government. If they're not itching to hire full-on Marxists like Saule Omarova, or Gigi Sohn or Julie Su, who are completely unqualified due to their ideology, they hire the completely unqualified based on minority status. During his term as mayor of South Bend, IN, Peter-Puffer Buttigieg took a relatively stable, if not mediocre town and turned it into a crime-ridden, bankrupt shit-hole. But being a militant homosexual and the son of a Marxist made him eminently qualified to be the Secretary of Transportation!

And I give you this "eagle" who has the aerodynamics of a brick flying under the radar, puns all intended:

“Mr. Washington, can you quickly tell me what kind of airspace requires an ADS-B transponder?” said Senator Ted Budd in a March 1 hearing with Phillip Washington, Joe Biden’s pick to head the Federal Aviation Administration (FAA). 

“Not sure I can answer that question right now,” said Washington. Budd said the answer was a “pretty important part” but quickly moved on. 

“What are the six types of special-use airspace that protect this national security that appear on FAA charts?”

“Sorry senator,” Washington said. “I cannot answer that question.” Budd duly advanced another. 

“What are the operational limitations of a pilot flying under basic med?”

“Senator I’m not a pilot so . . .”

“Obviously you’d oversee the Federal Aviation Administration,” countered Budd, “so any idea what any of those restrictions are under basic med?”

“Well, some of the restrictions, I think, would be high blood pressure.” 

As Senator Budd explained, the restrictions had to do with the number of passengers per airplane, weight, altitude, and speed. So “it doesn’t have anything to do with blood pressure.” 

. . . For all but the willfully blind, the Biden pick is unqualified to head the FAA. So the people have a right to wonder how he got tapped for the job. 

In 2020, “Washington led Biden’s transition team for the Transportation Department,” notes National Public Radio. The Delaware Democrat first nominated Washington in early July, 2022, “but he failed to get a hearing even though Democrats controlled the Senate.” Biden re-nominated Washington in January, so it’s pretty clear the FAA was a reward for service to Biden. . .

. . . Senator Ted Cruz cited “serious concerns regarding outstanding allegations of misconduct going back to Mr. Washington’s time at LA Metro. He was named in multiple search warrants in an ongoing criminal public corruption investigation and was the subject of multiple whistleblower complaints.” Washington was also named in a discrimination and retaliation lawsuit filed by a former Denver airport employee. 

As Cruz noted, the nominee’s failure to notify the committee of that lawsuit was one of “dozens of omissions” in his questionnaire. In Denver, Washington had stressed “sociocultural merits” and on March 1, despite ample time to prepare, the nominee failed to answer basic questions about airport safety. For Biden, Washington was fully qualified, and in a sense the Delaware Democrat is right. 

At all levels the various boards and commissions serve as soft landing spots for failed politicians, party hacks and bureaucrats. Witness the pathetic Pete Buttigieg, on “paternity leave” during a supply-chain crisis, and ignoring a toxic train derailment in Ohio. In similar style, Biden labor secretary nominee Julie Su enabled billions in unemployment fraud and supports the elimination of independent freelance workers. 

It's bad enough that idlers, hacks, cronies and other stooges become heads of bureaucracies, ambassadors and other positions in government. But when, either by choice or compulsion start occupying positions in C-suites, or are accepted to business schools, engineering schools and medical schools and worse, "earn" their degrees (that's going to be one big-ass bell curve) and are let loose into the world, well, just look at the collapse of SVB as a possible harbinger.

Already, Joey Sponge-Brain Shits-Pants has prioritized ESG for the financial sector despite its disastrous effects on the bottom line and investor portfolios.

Wayne Allyn Root thinks with our military so degraded by the imposition of Marxist "woke" indoctrination that an EMP attack by the Chi-Coms or Russia is imminent.

Why, when we're slitting our own throats, would they do that? At the rate we're going, they can waltz right in and take over without firing a shot. Hell, most of the government and far too many of our allegedly fellow citizens would greet them with flowers and candy. Meh, it'll be the Iranians who light off an EMP, thanks to Biden and the geniuses at Foggy Bottom itching to let them nuke up, who think America and Israel must be counterbalanced by the mullahs for stability, or something.

So many other good stories and links and I'm forced to deal with a lousy run on the banks.

NOTE: The opinions expressed in the links may or may not reflect my own. I include them because of their relevance to the discussion of a particular issue.

ALSO: The Morning Report is cross-posted at CutJibNewsletter.com if you want to continue the conversation all day.

Follow us on Twitter: @CutJibNews
Follow us on Instagram: @Cutjibnewsletter

TIP JAR: Your support helps keep the lights on and is truly appreciated. Note: We are on Stripe, not PayPal.

digg this
posted by J.J. Sefton at 07:45 AM

| Access Comments

Recent Comments
blake - semi lurker in marginal standing(2YtOq): "The other way around I'd imagine given this year's ..."

Sponge - F*ck Joe Biden: "[i]Now the workers are protesting at the MA Capito ..."

Warai-otoko: "There is no justice until we nationalize the pastr ..."

18-1: "Back in 2000 one of the arguments the left made wa ..."

Bulgaroctonus : "Then there are the fish puns. Goby a fish- pu ..."

Thomas Bender: "@265 >>Yikes When I was going for my CDL, th ..."

DB - planning the escape: ">The capital of Greenland is Nuuk. Nyuck nyuck ..."

sniffybigtoe: "Oh noes! It's our last chance to save the planet a ..."

Lizzy[/i]: ">>The story about Jaz Brisack is a hoot , if not s ..."

Zombie Robbo the Llama Butcher: "265 https://twitter.com/i/status/ 163987306956000 ..."

[/i][/b]andycanuck (Vwz3I)[/s][/u]: "People from Arizona have taken over Greenland? -- ..."

Joe Mannix (Not a cop!): "Yikes Posted by: Gwenn at March 27, 2023 08:57 AM ..."

Recent Entries

Polls! Polls! Polls!
Frequently Asked Questions
The (Almost) Complete Paul Anka Integrity Kick
Top Top Tens
Greatest Hitjobs

The Ace of Spades HQ Sex-for-Money Skankathon
A D&D Guide to the Democratic Candidates
Margaret Cho: Just Not Funny
More Margaret Cho Abuse
Margaret Cho: Still Not Funny
Iraqi Prisoner Claims He Was Raped... By Woman
Wonkette Announces "Morning Zoo" Format
John Kerry's "Plan" Causes Surrender of Moqtada al-Sadr's Militia
World Muslim Leaders Apologize for Nick Berg's Beheading
Michael Moore Goes on Lunchtime Manhattan Death-Spree
Milestone: Oliver Willis Posts 400th "Fake News Article" Referencing Britney Spears
Liberal Economists Rue a "New Decade of Greed"
Artificial Insouciance: Maureen Dowd's Word Processor Revolts Against Her Numbing Imbecility
Intelligence Officials Eye Blogs for Tips
They Done Found Us Out, Cletus: Intrepid Internet Detective Figures Out Our Master Plan
Shock: Josh Marshall Almost Mentions Sarin Discovery in Iraq
Leather-Clad Biker Freaks Terrorize Australian Town
When Clinton Was President, Torture Was Cool
What Wonkette Means When She Explains What Tina Brown Means
Wonkette's Stand-Up Act
Wankette HQ Gay-Rumors Du Jour
Here's What's Bugging Me: Goose and Slider
My Own Micah Wright Style Confession of Dishonesty
Outraged "Conservatives" React to the FMA
An On-Line Impression of Dennis Miller Having Sex with a Kodiak Bear
The Story the Rightwing Media Refuses to Report!
Our Lunch with David "Glengarry Glen Ross" Mamet
The House of Love: Paul Krugman
A Michael Moore Mystery (TM)
The Dowd-O-Matic!
Liberal Consistency and Other Myths
Kepler's Laws of Liberal Media Bias
John Kerry-- The Splunge! Candidate
"Divisive" Politics & "Attacks on Patriotism" (very long)
The Donkey ("The Raven" parody)
Powered by
Movable Type 2.64