Silicon Valley Bank goes belly up as chatter warns about a system-wide banking meltdown.

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And Ben Shapiro, this is The Ben Shapiro Show.

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Protect your online privacy today at ExpressVPN.com slash Ben. Well, the second biggest shutdown of a bank in U.S. history happened over the course of the last 72 hours, and people are freaking out. And there's a reason that they are freaking out when a major bank goes belly up like Silicon Valley Bank just did. That freaks out everybody, especially because

as it turns out, Silicon Valley Bank is apparently not the only bank that has the same kind of

issues that shut down Silicon Valley Bank. Signature Bank has also been closed right now. There is now

talk about the possibility of other banks following in the footsteps of Silicon Valley Bank

and having serious problems on their hands on

their own. That would include, for example, First Republic apparently has similar issues to

SVB. So we're going to go through exactly what happened with SVP, why it shut down, and we'll

talk about whether there's a system-wide banking issue. The first thing to understand is that the

reason for all of this is federal government mismanagement. the reason for all of this is federal government

mismanagement. The reason for all of this is because the federal government blew it on inflation

and then had to ramp up the interest rates in order to fight the inflation. So here is what

happened. According to the Wall Street Journal, SVB by Financial is the parent company of Silicon

Valley Bank, which counts many startups and venture capital firms as clients. So this means that a lot of people are sort of laughing today because look at all the big tech bros who are about to go on. Now, here's the reality. What's actually going to happen, as we'll discuss in a moment, is that the federal government is going to bail out the depositors, meaning that all of the people who had their money invested in Silicon Valley Bank, everybody who took their money and put it in Silicon Valley Bank and left it there. And then they would take swing loans in order to pay their staff. All those people will be fine. It's the bank itself that is going to shut down. This does mean the federal government is violating its own rules. The Federal Deposit Insurance Corporation, which is supposed to give you back $250,000 of your deposits. Every time you go to the bank, you'll see there's a little sign on the bank teller window

that will say FDIC insured up to $250,000.

Well, most people who are running companies keep a lot more than $250,000 there,

the FDIC is going to fill in all of those people anyway.

This does create a situation of moral hazard.

But what happened here is that SVP

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