Trump Pours Gasoline on the Fire Amid Economic Fears Following Silicon Valley Bank’s Failure: ‘THE BANKS ARE ALREADY STARTING TO COLLAPSE!!!’

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Former President Donald Trump fueled speculations of doom and gloom as he dove into the news surrounding the collapse of Silicon Valley Bank.





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“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 MODRRN [sic] AGE,” Trump exclaimed on Truth Social. “WE WILL HAVE A GREAT DEPRESSION FAR BIGGER AND MORE POWERFUL THAN THAT OF 1929. AS PROOF, THE BANKS ARE ALREADY STARTING TO COLLAPSE!!!”

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Trump was referencing the sudden failure of Silicon Valley Bank Friday after a run on the bank. The development sparked fears of a looming economic nosedive without the government’s intervention, plus concerns that other smaller, regional banks may experience a run in the coming days.

While The New York Times reported uncertainty about whether this is the start of a larger trend, they noted that Silicon Valley Bank is now “the biggest American bank to fail since the collapse of Washington Mutual in 2008, at the height of the global financial crisis.” This is likely to spark public debate over banking regulations, and squabbles have already gotten underway over who is responsible for the bank’s collapse. Silicon Valley is the second biggest bank in U.S. history to fail.

Treasury Secretary Janet Yellen sought to instill calm Sunday morning, as she insisted the American banking system is in an interview she gave hours after Trump’s Truth post. Asked if she was working on a deal to alleviate anxieties before the markets reopen, Yellen said “We certainly are working to address the situation in a timely way.”

Trump, however, took a different approach.

The post Trump Pours Gasoline on the Fire Amid Economic Fears Following Silicon Valley Bank’s Failure: ‘THE BANKS ARE ALREADY STARTING TO COLLAPSE!!!’ first appeared on Mediaite.

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