The Federal Reserve incentivized bad behavior and 'bloodcurdling irresponsibility' that enabled Silicon Valley Bank's collapse, according to The Bear Traps Report's Larry McDonald.
Collapse of Silicon Valley Bank is a ‘warning sign’ of how ‘screwed up’ our banking system is: Charlie Gasparino
FOX Business senior correspondent Charlie Gasparino provides expert analysis of the historic collapse of Silicon Valley Bank and its widespread economic impact. "Your hard assets are going to be an incredible place to invest because the dollar is weakening globally as the U.S. is moving toward recession. This uncertainty and these bank runs nearly guarantee a deep recession, and then eventually, the taxpayer is going to have to come up with more when they do a real fiscal bailout. Right now we're in the monetary bailout," McDonald advised.
"The market probably drops 20 to 30% from here because, at the end of the day, we're trading at 19-times earnings. And we have literally four banks that have blown up in the last week. We got one more on the way probably today or tomorrow," McDonald said.
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