Trump Proven Correct As Biden’s Bank Collapse Brings Worries of New ‘Great Depression’: ‘Modern Age Herbert Hoover’

In the biggest bank failure since the 2008 crash, the 16th largest bank in America, Silicon Valley Bank (SVB), failed on Friday and was taken over by the Federal Deposit Insurance Corp (FCIC) due to a run on the bank Wednesday resulting in customers withdrawing over $42 billion in deposits by the end of Thursday. 

“With what is happening to our economy, and with the proposals being made on the LARGEST AND DUMBEST TAX INCREASE IN THE HISTORY OF THE USA, TIMES FIVE, JOE BIDEN WILL GO DOWN AS THE HERBERT HOOVER OF THE MODERN AGE,” Trump wrote in a post on his successful social media platform, Truth Social, on Sunday. 

“WE WILL HAVE A GREAT DEPRESSION FAR BIGGER AND MORE POWERFUL THAN THAT OF 1929. AS PROOF, THE BANKS ARE ALREADY STARTING TO COLLAPSE!!!” Trump added.

Silicon Valley shares plummeted 60 percent and the NASDAQ exchange halted trading in the stock on Friday. On Thursday alone, Wells Fargo, Bank of America, JP Morgan, and Morgan Stanley lost a total of over $50 billion in market value. 

FDIC insurance guarantees all deposits at the bank up to $250,000 are protected and will be fully available starting Monday.

BREAKING: DOZENS OF BANK STOCKS HALTED AS FALLOUT FROM SILICON VALLEY BANK COLLAPSE CONTINUES, BIDEN’S REASSURANCES DON’T TAME INVESTORS

The Silicon Valley bank served many small businesses and venture-capital firms that had much more than $250,000 in the bank. According to Yahoo Finance, those who didn’t pull their money and have over $250,000 in the bank will only receive a “receivership certificate,” which doesn’t guarantee a 100 percent return of their money.

“Had SVB held those bonds to maturity, it wouldn’t have lost money. But being forced to sell caused losses that threatened the bank’s solvency. When it indicated the need to raise new capital, more depositors pulled their money, triggering a fatal run,” Yahoo Finance reported.

“Depositors will have access to all of their money starting Monday, March 13. No losses associated with the resolution of Silicon Valley Bank will be borne by the taxpayer,” a joint statement from the U.S. Treasury Secretary, Janet Yellen, and Federal Reserve chair, Jerome Powell, reads.

Trump predicted all of this. In 2020, Trump warned if Biden became President, “your jobs will be gone. I mean, you’re going to have a depression, if that happens… The biggest single headwind [to the stock market] is if he got in.”

You can follow Reed Cooper on Instagram here and Truth Social here.