(PatrioticPost.com)- In an interview with CNBC this week, financier Carl Icahn suggested that the federal government bailing out uninsured depositors is a sign that the system is “breaking down.”
Icahn appeared on CNBC’s “Closing Bell” on Tuesday with host Scott Wapner where he warned that there is a “major problem” in the US economy.
Icahn said bailing out Silicon Valley Bank sends the message that there will be no accountability because the government will step in and bail them out.
Icahn warned of the danger that comes from the American people believing that it won’t matter if they save money. The message Americans got from the Silicon Valley Bank bailout is that they can “spend all the money they want” and the “government will bail you out.”
He said one reason our economic system is breaking down is the lack of “good corporate leadership” which is vital both in good economic times and bad.
On Monday, in an interview on Fox Business’s “Cavuto: Coast to Coast,” financial analyst Robert Kiyosaki, the founder of the Rich Dad Company, predicted that the Zurich-based Credit Suisse will be the next bank to face insolvency.
Kiyosaki, who accurately predicted the collapse of Lehman Brothers in 2008, said as rising interest cause bond prices to fall, Credit Suisse is at risk of collapse.
Kiyosaki also expressed concern over individual retirement accounts and pension plans, telling host Neil Cavuto that the American taxpayer is impacted the most when the government bails out banks. He noted that the US dollar is “losing its hegemony” as the world’s currency which will prompt the Fed to print more and more money “to keep this thing from sinking.”
With Silicon Valley Bank, New York’s Signature Bank, and the crypto-friendly Silvergate Bank all collapsing within days of each other, over the weekend, the Biden administration was forced to scramble to contain the fallout.
On Sunday, administration officials announced that depositors at Silicon Valley Bank would be able to access all of their money on Monday and assured the public that the cost of the bailout would not be paid by American taxpayers.
On Monday while speaking at the White House President Biden reiterated that taxpayers will not be bearing the cost of covering the deposits. Instead, the money is coming from the fees banks pay to the Deposit Insurance Fund.
