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🗓️ 17 April 2023
⏱️ 61 minutes
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0:17.0 | So what we see in America today is the rise of a new managerial class that wields its power in part by exploiting fear. Can we suffer this moment of a lack of self-confidence in America, in ourselves, and as a country. |
0:24.5 | When you have a vacuum of self-confidence, fear fills the void. |
0:28.1 | Then when you have fear praying on that vacuum of self-confidence, the managerial class can then prey on that fear to advance |
0:35.1 | their own agendas. We saw it in recent days, okay, in recent weeks, with the |
0:40.2 | collapse, for example, of Silicon Valley Bank. |
0:43.8 | What did Silicon Valley say? |
0:45.2 | Well, for years, they had actually said that Silicon Valley Bank is not a systemically |
0:49.3 | important bank. |
0:50.1 | It's just a weird bank in Silicon Valley that does its own business that enters special deals with startup founders and that's why it was one of the reasons they lobbied for exemptions from financial regulations that said that they were allowed to take risks that large banks weren't allowed to take. |
1:03.5 | Now I think that makes sense, but there's two sides to the bargain, which is that when that bank takes risks that cause it to fail, |
1:10.5 | the bank and its depositors and its clients have to ultimately pay the price for the risks |
1:16.0 | that they took. |
1:17.0 | Yet what do they do? |
1:18.9 | They preyed on this fear, manufacturing the fear of a nationwide bank run, as a way for arguing on a Sunday night |
1:29.2 | for a bailout. |
1:30.2 | And they got it because it then became a technocratic issue. |
1:33.0 | It's not a moral issue, it's not a normative issue, it's just a technical issue. |
1:37.3 | We have a banker in America, you've got to understand the specific technicals of this. |
1:40.1 | If you don't understand this, then you're a Luddite because you don't really understand how finance works and how there's contagion from one bank to another completely |
1:47.0 | eliding the distinction between Silicon Valley Bank where there's a tiny portion of total deposits that were actually |
1:54.3 | insured by FDIC compared to most banks where it's the majority of those deposits |
1:58.1 | compared to the fact that Silicon Valley Bank had the highest concentration of |
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