Out of one side of her mouth Janet Yellen has announced No More Bank Bailouts.
Out of the other side of her mouth she has announced Massive bailouts in the form of Two "Special Facilities"
One "Special Facility" will provide unlimited funds for SVB Bank depositors (read Tech Venture Capitalists and their speculations)
A Second "Special Facility" will provide unlimited funds to any other bank, as needed.
This is like Vladimir Putin announcing his country is not at war, but simply conducting "Special Operations."
In other words while the Fed is Tightening by raising intrest rates they are now conducting Quantitative Easing again by printing money to inject into the Banking System.
Thank God for capitalism.
To be serious, some of the companies being bailed out are probably good solid start-ups that probably deserve a chance to make it. But some will be concerns simply fueled by low to zero interest loans that never should have been made, that will never make a dime, that only exist to be sold to a greater fool, and will now be bailed out instead of being allowed to fail. Everyone wins - except the US tax payer.
But - just a thought. What happens when all this new liquidity fuels the next inflationary crisis? It won't hurt those VC Billionaires who just got bailed out. But everybody else? Not so good...
Got gold?
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