Latest Articles Videos

Live Podcast Serials Stations

About Charity Books Sponsors Shop Contact

RADIOMarch 13, 2023

Glenn explains: THIS is how Silicon Valley Bank COLLAPSED

Silicon Valley Bank was shut down by regulators last week, marking the biggest bank failure since the 2008 collapse. So what happened? And what does this mean for YOUR finances? In this clip, Glenn explains exactly how SVG collapsed, why the Fed is to blame, and why working with a FDIC insured institution is IMPERATIVE.

Transcript

Below is a rush transcript that may contain errors

GLENN: Here's what happened. A couple of things. First of all, we're raising rates.

We had the COVID money coming in, right? To have

And you just heard there, all this COVID money. Well, they wanted to invest it. They needed to put it in some place. And invest it.

Silicon Valley. They had so much money coming in from COVID.

And so what did they do?

They bought treasuries. And at the time, you could buy a ten-year treasury, and you would get 2 percent interest. Guaranteed, at the end of ten years.

That was pretty good back then.

But now, treasuries are selling for about 5 percent interest.

And you don't get that, until the end of the ten years.

So when I buy something, a ten-year treasury, you're buying it for ten years.

If you have only eight years on it, you can sell it, but you're going to probably have to sell it at a discount if the new ones are paying more. So they invested the -- the money in treasuries, at 2 percent.

Just let's remember that. What they had in the bank, if you will -- they owed $195 billion. That's to the people who have put their money into checking accounts and savings accounts, mutual funds. They owed $195 billion. They had 208 billion, on the books.

That's a 17 billion-dollar -- when you have people all over the world starting to say, I think the bank is starting to collapse. They start to take their money. $17 billion can go that fast.

There was a clog in the system, that couldn't get the money wired out fast enough.

So they decided, they needed to sell. And then they announced, we're going to sell some Treasuries.

Well, once they saw that they were selling ten-year bonds, at 2 percent interest, and the market was saying, well, that's only worth 75 cents on the dollar in you.

And Silicon Valley bank was like taking it. They knew, this is a fire sale.

This bank is in trouble. That's what started all of the run on the bank. Now, you probably have FDIC insurance.

If you have FDIC insurance, it's to stop runs on the bank. However, Silicon Valley bank is different. It's very different.

I think it's 88 percent of their accounts, are not covered by FDIC. Why?

Because they're giant companies that are using payroll and keeping their money in the bank, as -- as the place where they can run their company.

So they -- they have more than 250,000 dollars in account. If they also, use the bank for a mutual fund, they found out Friday, they were also screwed.

See, this bank, loans money to these companies. These tech companies.

And they loan them out, venture capital.

And so they loan them the money to operate, and to be able to do everything they can, over the next year.

Well, they've got to put that money somewhere.

So the bank loans it out.

It's basically the depositor's money.

They loan that savings account of yours, per se.

And loan it to this venture capital firm.

Or, or -- the tech startup. And the tech startup then says, where do I put all this money?

And Silicon Valley bank says, oh, just in my other hand. Just give me my money back, and we'll invest it in mutual funds for you. We'll invest it in very safe things like BlackRock. So they did. And the tech companies thought they were safe.

Because it's invested in very secure places like BlackRock.

Except, what the bank didn't say, except in fine print. Is that all the money that you had invested, in BlackRock, was not yours anymore.

It was -- it was under the name Silicon Valley bank.

So when people started to call and say, hey, BlackRock, my money is safe. They said, you don't have any money.

Your money is invested in Silicon Valley bank. And because their name is on it, they're counting that as an asset. And now that asset as has to go to pay creditors.

So they lost their money. This is a giant shell game.

We have created nothing, but a shell game.

And the fed is the one that is causing this collapse, by the raising of the rates. But if you don't raise the rates, what happens?

Inflation goes out of control!

Why?

Because we have printed and loaned too much money out.

Okay. We'll pull it back in.

Well, the way you pull it back in, is raising interest rates. If you raise the interest rates, bonds have to pay a higher yield, and so when you buy a bond, you get more money back. And if somebody gets into trouble, they have to sell their bonds, exactly like Silicon Valley. And they have to take a hair cut. And then the entire thing collapses.

But here's the scariest thing.

This is what the fed has set out to do.

They want to see risky things, go away.

They want to see failure.

They need to people who are not stable to go out of business. Stop spending money. So we can suck all that money back in. But when they do collapse it. And our economy is in this kind of shape. You then have a domino effect, because nobody is in great shape.

And thing banks are playing a giant game.

So then people can't pay the paycheck. And then that paycheck falls -- causes you to default on your auto loan. Or your house loan.

And that makes another bank fail.

We're at the place, I told you in 2008. We would be. We have made the 2008 problem much bigger, and there's no way out.

Once you start printing money, there's no way out.

And what did we do?

Well, the fed said, we're not doing TARP. No, no, no. We have something entirely different. It's got a different name and everything. But we're going to cover all of those accounts.

Oh. Oh, okay.

So we're backing -- we're backing that now.

Yeah. But it's not your money. It's not your money. It's the fed's money.

It's the fed's money? Yeah. It's the money that the banks gave to us, to put aside for insurance in case something like this happened. Oh.

Where -- where did the banks get that money? Well, I don't know. Doing business.

Well, I mean, aren't these the banks you bailed out?

Well, yeah. And weren't you just giving them trillions of dollars is if

Well, yeah. Of course, we did. But they were paying in to this account.

Oh, okay. So the money you printed, that I'm on the hook for, you think to the bank, but they didn't use any of that money for that insurance?

No!

No. This is totally different.

Okay.

So now they're going to be protected, and I don't have an answer for you. Today.

Because all of the answers are bad answers. Should we back that?

No. No.

The constitutionalist, capitalist in me, says that's really bad.

Okay. So we don't back it. Well, no. No.

Because the guy who would like to see the entire western world not burn down to the ground, would like you to bail it out, just to give us some more time.

But that puts us right back where we were.

So I don't have -- I prayed hard today. What do I tell people?

Work on your spiritual health.

Because this is coming. At some point. It's coming. It has to. It has to. Now, the Washington Post said today, that the baggage's death marks both a sobering and salutary moment here.

The central bank has sharply increased interest rates over the past year, hoping higher borrowing costs would slow the economy down, and take the steam out of high inflation.

This is what the fed wants to see. They want to see a tightening of the financial conditions.

Great! They're on it. The Washington Post. With $209 billion in assets, the bank was just 118th the size of JP Morgan Chase. The nation's largest. Still Wall Street Journal was rattled by their abrupt end.

Bank of America was down nearly 12 percent in the past five trading sessions. They're down another five or about four and a half percent today.

Some banks are down as much as 10 percent today, before trading even started. The banks that served the riskiest part of the country and the economy, are the ones in trouble. Now, this is the Washington Post. I want you to listen to this.

Banks like SVB and Silvergate Capital, a San Diego-based bank that catered to cryptocurrency users, are the ones that are getting into trouble.

Oh. It's not a run -- it's not a run on the business model of the bank, it's -- it's not -- I'm sorry. It's not a run on the business model of the banking industry, in general, it's just the business model of this bank. So, in other words, if you are making risky loans, to -- to tech, or if you're investing and doing anything at all with cryptocurrency.

You're the problem. Hmm. That's interesting.

I'm going to tie some of this together here. We have a lot to go over, in just a second.

Sadly, it probably comes as no surprise, that anyone after the overturning of Roe vs. Wade. Abortion is still the number one killer among infants. We're still killing nearly a million of our own children, every single year.

And that is still here, in the United States.

I asked you, by the way, if you had had an abortion. You knew somebody that did. And they regret it.

Or you're F you're a child. That somebody tried. Mom tried to end your life. And you lived. Or she changed your mind. Will you write me a letter, and tell me your story?

I have something coming. That I'm working on.

And I will keep your name out of it.

You can use an assumed name. We just need your phone number, so that we can call and verify that you're an actual person. But all the details are at GlennBeck.com.

But we are fighting the good fight. I don't think there is anything we could do that would be more important than standing up and stopping the slaughter of our children.

For $140, you can introduce moms to their babies on an ultrasound. And help rescue five babies. When you do, you will see five stories, and five ultrasound pictures of babies saved. Preborn's goal this year is to rescue 80,000 babies, just from this audience. That's our goal.

They can only do it with your help. So will you join us?

Dial #250. Say the key word baby. Give just a dollar, $10, $140; 15,000 buys an ultrasound machine.

#250. Key word baby. Or go to Preborn.com/Beck. That's Preborn.com/Beck.

Ten-second station ID.
(music)
Okay. So here's something you probably didn't know: The New York Times is reporting today, that good thing this bank has been saved. Silicon Valley Bank was in many ways, a climate bank. When you have the majority of the market banking through one institution, there will be a lot of collateral damage. Community solar projects appeared to be especially hard hit. Silicon Valley banks said, it led or participated in 62 percent of financing deals for community solar projects. Their smaller scale solar projects also serve lower income residential areas. Don't worry. Don't worry. The fed is covering all of this.

The devastation comes at a critical moment.

It is central to cut the greenhouse gases that are dangerously heating the planet, says the New York Times.

The federal government depends on climate technically companies to develop the innovations needed.

This is going to set the climate change industry down and set them back, for years.

Hmm. Gee. Well, good thing we're not drilling for oil. Good thing we're getting rid of all of our backup power plants, isn't it?

Home Depot cofounder said, the global lending firm, Silicon Valley bank, went broke because it was woke.

Now, the rising interest rates are really -- really why. But if you want to look at their business model, these guys are woke activists. He said, instead of protecting the shareholders and their employees, they're more concerned about the social policies.

As recently as this month just days before it went into receivership with the FDIC, the Silicon Valley bank discussed decarbonization, gay rights, the black venture ecosystem. And so much more.

Well, they were woke. Good thing.

Good thing. By the way, they were purchased this morning. By a British bank. Because Great Britain was worried about their tech industry. As SVB, funded a lot of their stuff too.

So that's good news

War & civil unrest: What could happen if the BANKS COLLAPSE

Glenn doesn’t believe America’s recent banking crisis is the big one he’s been warning about…but that one still may be just around the corner. And the numbers he shares in this clip at least show that the big banks aren’t looking good. So, what’s next? In this clip, Glenn details several scenarios — like war and massive, civil unrest — that could occur if and when the banks collapse. He explains why bank failures could lead to a central bank digital coin and also why you MUST not panic: ‘Panic makes this whole thing happen…

Transcript

Below is a rush transcript that may contain errors

GLENN: If you're a long-time listener of this program, you know I'm always concerned with the financial crisis. It stems back to 2008, which I thought at the time, back in 2006 and '7, I was telling you, this is a big one. Could cause depression. What I didn't foresee, was that the federal government, what was it that George Bush said? Violate the free market system to save the free market system. Instead, we did not save the free market system. What we did was make the problem bigger. At the time, in 2008, our banks were too big. Too big to fail. We have to break these big banks up.

Well, nobody did that in 2008. In fact, the opposite happened. They got bigger. And now well, what's happening?

They're bailing the bigger banks out. Making the big banks bigger. Credit Suisse just rolled into a big bank. This is what will happen. We will end up with four banks. And then we will end up with the fed.

And by violating the free market, everything went off the rails. Last week, banks borrowed a combined $164.8 billion, from two Federal Reserve backstop facilities.

And so you know, data published by the fed showed 152.85 billion in borrowing from the discount window.

Then, they did a record high from 4.85 billion, the previous week. So they went from 5 billion to 152 billion, in a week.

The prior all-time high was in 2008. And that's when the banks got together, and they borrowed $111 million. That was at the height of the financial crisis.

Remember, we're not in a financial crisis. We had a little bump in the road. Everything is fine. They borrowed 152 million.

So what? 41 billion more, than they did in 2008.

STU: To be fair, with inflation, that number is 94 trillion today.

GLENN: The data also showed, 11.9 billion in borrowing from the new emergency backstop known as the bank term funding program, which was launched last week.

Other credit extensions totaled 142.8 billion dollars.

So you got all that. You got all that happening, in the background of everybody telling you, that it is fine.

I want you to know, if you're a long-time listener, you know that I freak out about these things.

I said last week, I don't think this is it. But it will look a lot like this, when it does come.

And I want to spend just a couple of minutes here, talking to you about what is coming eventually.

I -- I could be wrong, this could be it.

I don't think it is. But I am growing more cautious by seeing what's happening behind the scenes.

Lots of planes. Lots of planes flew in to see Warren Buffett over the weekend, after Warren Buffett had a phone call with Joe Biden about the banking system, all these people, we don't know who they are, we think they went and met with Warren Buffett. We don't know. But what I do know, is in 2008, we were trying to stop a depression. Remember? They said, the entire banking system was about to collapse. And it would have put us in a depression. There's $23 trillion in the US banking system today. And everything is interconnected.

The contagion, meaning one bank falls, and then it's dominoes. It goes across the water. And it will collapse everything, unless you're disconnected.

Hello, Russia. Unless you're disconnected from that banking system. The banks were saved in 2008.

But just that crisis, with them being saved, we had unemployment at nearly 11 percent.

We are now looking at a bigger problem, if it fails.

We're looking first at our big local and regional banks.

The government will have to bail them out. By the way, do not take your money out of those banks.

You will be FDIC-insured. If you're a business, check with the bank. But don't take your money out because that will collapse the system.

They provide 60 percent of all of our commercial loans.

If the small banks collapse, 60 percent of all of our loans, and our businesses collapse.

Be very, very bad.

We are not looking at a depression situation. We are looking at a complete collapse of the West if this happens. You'll have social unrest. But I think you're already. I mean, the government is assuming this up already.

It will happen not only here. But all over the western world.

That will cause a further breakdown of supply chains. If you lose 60 percent of your business funding, for your businesses and your country, what does that mean?

It means, you will have lots of people, without jobs, they're not making things.

Which then what happens?

You have the supply chain, you first need to worry about medicine and food.

Because that will be of a real concern. But if businesses lose their Capitol. They lose their ability to produce products and services. They lose their ability to employ. People lose their jobs.

That would make for worse inflation. Maybe hyperinflation. Because the federal government will bail everybody out. And all of that money. Will be circulating. And fewer goods, if the global economy were to collapse. Fewer goods would be coming in. So the price of those goods would go to hyperinflation. The issue is that the middle class. The working class. The poorer class. They're the ones who will bear the brunt of most of this.

Last time, around from 2007 to 2011, 5.7 million people, had their houses foreclosed, or short sale.

We are looking at a possible and it -- I really, truly believe this will happen before 2025, so you need to mentally prepare. This is a completely different world, if this happens.

And if it happens, it will happen quickly. We are headed towards a currency reset.

If it's a -- if it is a cryptocurrency, if it is a central bank digital coin. CBDC, we're going to get bargaining.

And here's what's going to happen. The government will step in, this is too big for anybody else to handle. We'll handle it with the fed. We're resetting the currency.

It's going to be a digital dollar. You will be in the fed.

Every American has an account now with the fed.

We will give you more than what your dollar is worth right now. For the first, I don't know, eight weeks.

Your dollar will be worth a dollar 25. So get your digital currency now.

And in six weeks, it will be worth a buck. And six weeks after that, it will worth 75 cents. Eventually, it will be worth nothing. And it will force everybody into a digital currency. Which will ultimately control absolutely everything you do, and a lower standard of life.

But a lot of people will be happy. Because there's some enormous. It also would mean that most likely, a war. All of these things are -- are beyond possible right now.

The financial and the reset to a digital currency is not just possible. It is probable.

The war. I don't know. What would you say, Stu? Probable? Or just still possible?

STU: Probable?

GLENN: Yeah, I think so too.

Probable. So you have to get yourself in a different mindset. Please.

I told my wife. And I'll tell you, because I want to tell you, what I would tell my own family.

We have to go shopping tonight. You know, we have our emergency food. But if this happens, you'll have a breakdown worse than COVID.

You won't be getting the money. The money will start to inflate quickly. Prices will spiral out of control.

And when you have -- especially in some areas, when you have a breakdown of trucking. Or supply chains. You will have a hard time getting things.

So I would just recommend, do not hoard, but grab some extra things, and have them ready.

This may not be the time. But I like to sleep at night.

Take care of your family, and do the right things. Do not panic.

Panic makes this whole thing happen. So do not panic.

Glenn: Do this TODAY to help stop possible Trump arrest

They’ve got the man. And now, the far-left is just trying to find the crime that will put him behind bars — and away from their political power — forever. It’s un-American, Glenn says, but thankfully YOU can help. Now may not be the time to march in the streets, but there is another way you can peacefully protest what the far-left is currently doing to our rule of law. And it’s simple: ‘Burn up those phone lines,’ Glenn says. ‘[Call] as many GOP representatives as you can possibly dial.’

Why a Trump indictment would make America a BANANA REPUBLIC

What is the far-left accusing Donald Trump of NOW? And will the former president truly be indicted? If so, what does this mean for America’s future? Alan Dershowitz, Harvard Law School Professor Emeritus and author of ‘Get Trump,’ joins Glenn to explain why this latest move from the far-left is ‘destroying the rule of law in America.’ He explains the exact charges the left intends to pit against Trump this time around, and why — if they’re successful — it could send our nation towards becoming a banana republic…

Transcript

Below is a rush transcript that may contain errors

GLENN: Mr. Alan Dershowitz. How are you, sir?

ALAN: I am doing great. I wish the country were doing great. I think the impending prosecution of Donald Trump will destroy the rule of law, in America. Which is why I wrote my book, get Trump.

Because that's what they're doing. They're focusing on a person rather than a crime.

You know, the Torah, the Bible one, don't take bribes. That's obvious.

The other is do not recognize faces. Do not do justice based on who the person is. That's a problems in the Bible. That's a prohibition in the constitutionally. it's a prohibition into the rule of law.

And yet, the district attorney of Manhattan, ignoring previous district attorneys. Ignoring the US attorney's office. The Justice Department. Is going after a made-up crime. A crime that does not exist. It's part of the bet Trump.

And if you want to protest get Trump. Michael get Trump.

That will send a message, that will approve of that.

GLENN: Which a few years ago, it would have happened. But I don't think they're going to do it this time. Because we know this federal government. This Justice Department, does not protect the lawful gathering of American citizens to speak their voice.

We also are concerned about, is that an FBI guy, who is trying to get the crowd all whipped up into a frenzy?

I mean, we don't believe our rights are protected as an average citizen anymore. That's a frightening place to be in America.

ALAN: And it's not only the Justice Department. It's the New York City the attorney general of New York ran on the campaign of get Trump. That's where I I got the title of my book from. Her campaign, get Trump. Promise to get Trump no matter what. Constitutionally be damned. The Bill of Rights be damned. get Trump. That's the most important thing, to stop him from realizing. Of course, the irony is constitutionally provides for only, you know, a hand handful for bases for running. You have to be against the North.

And you have to have been been born in America. And he satisfies all of that criteria. So stibbling run.

And this may backfire on Democrats who are abusing the law to get Trump.

And I hope that does. And I hope that maybe the district attorney will listen to reason. And will not indict him.

You know, justice Jackson once said, that any prosecutor can rummage among the hundreds of statutes that you have. And try to find something against anybody. Not just Trump. Not just Hillary Clinton.

But you and me. And your uncle Charlie and grandson. They can find something. And if this prosecution is allowed to go forward, and culminate in the conviction. It will mean that they will start making crimes up against the average person, who they don't like.

GLENN: Can you -- can you take us through this at all, Alan.

Because people will say, okay. I don't think you should be paying hush money. Is that illegal? What charges are they so that we don't

ALAN: Sure. It's never been done before, number one. So they're charging him with a misdemeanor. Misdemeanor six years ago. They are trying to turn the misdemeanor into a felony, by saying that the reason he paid, quote, hush money. It wasn't hush money. But the reason he settled the case was to help his campaign, rather than to avoid embarrassment with his wife and his family. his children, et cetera.

They're not going to be able to a prosecutor can a little grandly Jill to indict a ham sandwich.

And in New York, you can do probably get a petit jury to change sandwich, as long as his name is Trump.

So there is a possibility that he will get indicted and get convicted. I think it will reverse on appeal. in making up crimes. This is making up crime.

So they say that he paid the hush money, in order to help his campaign. And therefore, the payment was a campaign contribution.

It's never been done before. They tried it once before, on candidate Edwards. And it was a much, much stronger case. And, of course, they lost in front of a jury.

But it's never been tried since. And that was a federal crime.

This is a state crime. And it's a shame that a district attorney would abuse justice so greatly. And it endangers justice for all of us.

GLENN: So, Alan, where is anyone?

When we get to a place to where we're taking out our opponents.

I mean, I spoke to Mike Lee about this. With Hillary Clinton. And what was going on with Hillary Clinton. And he said, Glenn, once you start going after an opponent, you become a banana republic, the republican is just over.
because the retribution. The other side will say, oh, we're playing that? once said, well, my friends everything. For my enemies, the law. The law.

And that's what will happen.

And senator Lee is right. Senator Lee's father is a good friend of mine. We clerked technology on the United States Supreme Court. And Lee is a Bill Clinton, Bill Clinton guy. And he's right, we don't want to be a banana republic on either side.

GLENN: So my question to you is: Where are the classical liberals?

Where are the people that don't like Donald Trump? But will stand up and say, this is about principle here?

SPEAKER ONE: Well, you're talking to them. I'm the last standing, oh, I may have a handful of colleagues.

But where are the civil liberties union people?

Where are people who are supposed to care more about our liberty than they do about partisan politics?

They have disappeared. They're not there.

And that's not why I'm the one writing the books now. Get Trump. I'm the one who is trying as a liberal Democrat. As I said over and over again.

I voted for Trump twice. I have a constitutional right to vote and don't stop me from doing that. Don't stop me from making the disquisition run, formal president.

That is banana republic. And we're moving toward that. And it has to stop. And there's no mechanism.

You know, in California, there was a mechanism. You could withdraw and remove the district attorney. And if New York had a Republican attorney, they would be removing the district attorney.

But the democratic and no recall improvements district attorney gets his way. And there will probably be an indictment. I don't know if it will be tomorrow or not. I don't know if they'll do a pepper strengthen Donald Trump's base. People will be so angry with them. I've got call you wills from people. look, we're oops. We were plan oops we were planning to vote for Nikki Haley. But we'll vote for Trump. Because that's the and weaponization of the law.

You know, I have a better form of protest. Buy my book. Then you don't have to vote for Trump.

But it is -- it will backfire. Now, will it backfire in New York?

Probably not. he gets his 15 minutes of fame.

Even if it's reversed on appeal. He'll say, oh, that's not my fault.

I indicted him. I convicted him. Vote for me. We're the only country, did you know this, the only country in the western hemisphere? The only country among Democrats that elect prosecutors. Elect prosecutors. And every other country, they are civil service jobs.

And they are not subject to -- for the whims of political fortunes.

But we have elected prosecutors. And prosecutors prosecute people, based on how much good it will do them in the next election. And there's something very wrong with that.

GLENN: Well, the whole system, I've said, have you tried plugging it back in to factory is that we told them to happen. It is so dirty all the way through.

So -- so, Alan, what should the -- besides biker book, what should the American people be doing right now?

ALAN: Well, we should be protesting. I don't call for people going out on the streets. But I do call for people to write to their senators and congressmen, the New York authorities, evangelizing shows like yours, which have a big impact on national opinion. And making sure that we're not silent about this. We have to speakable out. And your message is as clear as can be. Where are the civilian Libertarians? Where are the people saying, look, I'm in favor of Biden. I will vote for him.

I don't like Trump. But I don't like the way he's

SPEAKER SEVEN: That's the American way. The American way is to protest. for a redress of grievances.

That's in the First Amendment.

And we have to all take advantage of that. We do have a double standard of justice in America today.

I'm representing one of the young men on January 6th. He's a law school student. He was denied the opportunity to graduate. Even though he was a top student.

Because he went to the capital, to and then he was waved into the capital by police. We have videotape showing it.

Yet he's problematical formal a felony.

Whereas, the people who destroyed property and hurt people, in various parts of the country, following the George Floyd murder, weren't being prosecuted.

Were they do ways. sole that means no standards.

Swimmer EXPOSES ‘emotional blackmail’ within trans athlete debate

Riley Gaines, former University of Kentucky swimmer and a 12-time NCAA all-American athlete, refuses to stay quiet about transgender athletes competing in women’s sports — no matter how much backlash she may receive. She joins Glenn to detail why ‘people are scared’ to speak out, the ‘emotional blackmail’ some athletes receive when they do, and why allowing trans athlete to compete in women’s sports creates a dangerous ‘slippery slope.’ Plus, Gaines gives invaluable advice to those who may be in a similar situation she was once in, but who may be afraid to take a stand and speak the truth…