March 12, 2023
Mr. Steve Forbes, Editor in Chief/Forbes Magazine
499 Washington Blvd
Jersey City, NJ 07310
Dear Mr. Forbes:
The magazine that you edit in your spare time may be the worst of the worst. The magazine doesn’t even pretend to be an objective news source anymore. I would even go so far as to call Forbes the Legacy MSM for Corporate buybacks, ESG and ruthless filthy rich WEF loving elites. But, I digress.
Since I don’t subscribe to Forbes, I accidentally came upon one of your seldom seen articles, this one on Dodd-Frank, which I would like to bring to your attention: https://www.forbes.com/advisor/investing/dodd-frank-act/
Are you aware that your writer did not even discuss the “Bail-In” provision which in the event of bank failures on a massive scale effectively takes taxpayer monies directly from their bank accounts to make banks (not us) whole? According to your crack Forbes reporter, the Dodd Frank Act that allows taxpayers to bail out banks directly instead of our Government indirectly is really just about making sure that our money is safe. Tight as a drum. In the ‘ole lockbox. Here is a refresher:
This process referred to as “Statutory Bail-Ins” includes expanded powers to the Federal Reserve, the Securities and Exchange Commission (SEC) and the Federal Deposit Insurance Corporation (FDIC), whereby bank holding companies and significant non-bank holding companies can be placed in receivership under federal control with the FDIC acting as receiver under Title II of the Act.3
As opposed to the Bail -Outs that happened during the last banking collapse from bad risk management in 2008, Bail-ins work a little differently, providing immediate relief:
Banks use money from their unsecured creditors, including depositors and bondholders, to restructure their capital to stay afloat.
In other words, banks are allowed under the Act to convert debt (our money) in their bank to their equity. Ka-Ching Bankers!
Maybe missing the “Bail-In” deal was just another one of those silly MSM omission-commissions?
As I am sure you may have required as Forbes editor-in-chief, this article written by a lowly paid and recently College graduated writer with little to no economic background contained the obligatory Forbes jab at Trump. I am sure this gave you extra points with the lying mainstream media that you belong to by blaming Trump for weakening the rule that is now being used to explain away SVB’s collapse.
Yes, it is possible that when Trump and Republicans rolled back certain provisions of Dodd Frank that would have restricted some bank investments in Venture Capital firms it may have indirectly led to the SVB bank collapse. Of course, SVB management chose a risky woke route for risky returns, but it just wouldn’t be fair to hold them personally accountable for screwing their fiduciary duty to their owners and investors when you can try to blame Trump instead.
The much bigger issue that we are continually facing in real time all around us is that this bank, and many others, are investing in ESG companies generally and these investments are destined to lose in every way imaginable. Regardless of what Bolshevik Larry Fink says. Even our installed administration is now ratcheting that up that even further, allowing pension fund managers to invest in DEI and ESG “green” organizations that have nearly no economic future or foundation. Janet Yellen knew what was brewing with those bad ESG venture capital investments and let it all go because Woke rules the day. That is the real issue behind the SVB collapse and I doubt your ragazine will do a story on that.
On a side note, I would like you to take a look at the screenshot below found on many pages of the Digital Forbes website. With all the financial disasters happening and about to happen, I guess I just missed it. There are now only two publicly trade stocks in America you can buy – Apple and Tesla. I bet they must be pretty valuable since they have all our money. Thanks for the scoop Steve!
PS. Ya still believe those pesky Chinese leaders are just benign people like us that want to go along and get along? Hmmm. Kind of missed that one by a long march mile.
Sic Semper Tyrannis
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