Home Depot co-founder Bernie Marcus says Americans need to “wake up” to the reality that the US economy is going through tough times following the collapse of Silicon Valley Bank.
Marcus also placed some of the blame for the bank’s failure on the Biden administration, prioritizing “global warming” over shareholder returns.
Marcus argued that the bank’s collapse shows that the US economy is not as strong as President Biden has suggested.
He criticized bank officials for selling their stock before the collapse, and lamented the fact that many Americans lost their money in what he called an “awakened bank.”
“I can’t wait for Biden to get back into the speech and talk about how great the economy is and how it’s moving forward and getting stronger every day. And this is an indication that what he says is not true.
And maybe the American people will finally wake up and understand that we are living in very difficult times, that in fact a recession has already started. Who knows? But it doesn’t look good,’ Marcus continued fox news, on Saturday.
Bernie Marcus, co-founder of Home Depot, urges Americans to pay attention and understand that the country is in ‘difficult times’ following the collapse of SV Bank
Marcus blamed the Biden administration for pushing banks to prioritize “diversity and all waking issues” over shareholder returns, suggesting that a focus on social policies is now causing banks to be mismanaged and their shareholders and their own not protect workers.
“I feel sorry for all those people who lost all their money in this waking bank. You know, it was more disturbing to learn that the bank officials had sold their stock before this happened. It’s depressing to me. Who knows if the Justice Department would go after them? They are a wake company so I don’t think so. And they’ll probably get away with it,” he continued.
Marcus went on to warn that the US economy is in trouble, with interest rate hikes by the Federal Reserve and inflation going in the wrong direction.
“I think the system, which the administration has pushed a lot of these banks into [being] more concerned about global warming than shareholder returns. And these banks are being misled because everyone is focused on diversity and all waking issues and not focusing on the one thing they should be doing, which is shareholder returns,” Marcus stated on Fox.
Marcus said he doesn’t believe President Biden’s speeches when he talks about the improving economy
“Instead of protecting shareholders and their employees, they are more concerned about social policies. And I think it’s probably a poorly run bank. They’ve been there for many years. It’s sad that so many people have lost money and never get it back.’
Marcus criticized Biden’s proposal to tax the middle class and the wealthy, calling it “stupid” and arguing that such policies are counterproductive in a recession.
But Marcus’s warning is bleak and he believes the US economy is in serious trouble with the collapse of Silicon Valley Bank, a sign of things to come as he believes the US needs to adopt more sensible economic policies to weather the storm .
He argued that people are struggling to pay their bills and fill their tanks with gas, while the Biden administration, he says, is “numb” to such problems.
Marcus called for someone with a “sound head” to come and understand that the US cannot keep raising tariffs, keep inflation as high as it is, and tax people more than they are already being taxed.
The Fed continues to raise rates and inflation continues to go in the wrong direction. It doesn’t stay where it should be. People struggle. They cannot fill their tanks with gasoline. And if you think that’s a good sign, I don’t think so. And we have an administration that is stupid about this. They keep talking about the great times and how good it is. It’s not good,’ Marcus concluded.
“Someone with common sense needs to come in and understand that you can’t do two things. First, you can’t keep raising rates. You can’t keep inflation as strong as it is. And you can’t tax people more than they are.[Biden’s] proposal to tax the middle class and the wealthy is about as stupid as I’ve heard for a long time. You don’t do that kind of thing in a recession like that.’
Mark Cuban, enterprising owner of the Dallas Mavericks, has called on the Federal Reserve to take swift action and take responsibility in the aftermath of Silicon Valley Bank
Meanwhile, Mark Cuban, entrepreneurial owner of the Dallas Mavericks, has called on the Federal Reserve to take swift action and take responsibility in the wake of Silicon Valley Bank.
Cuban posted a series of tweets urging the Fed to buy all of the SVB’s securities and debt at a price close to par, which should cover most deposits.
He suggested paying any losses in equity and new debt from the new bank or its potential buyers.
“The Fed should IMMEDIATELY buy all securities/debt that the bank owns at par, which should be enough to cover most of the deposits,” Cuban wrote online.
“All losses have been paid in equity and new debt from the new bank or whoever buys it. The Fed knew this was a risk. They should own it
If the Fed doesn’t own it, trust in the banking system becomes a problem. There are many banks with more than 50 percent uninsured deposits.’
“What are best practices to protect against a future run if your company is writing millions of checks every week?”
Cuban argued that the Fed knew such a risk existed and therefore needed to take ownership of it.
Failing to do so, he claimed, could undermine confidence in the banking system, as many banks have uninsured deposits of more than 50 percent.
Cuban also questioned the role of regulators in overseeing the SVB and expressed surprise that the bank was allowed to operate in this way.
The bank had a reputation as the go-to bank for Silicon Valley startups and includes companies like Airbnb, DoorDash, and DropBox, among others.