HBO’s “Real Time” host Bill Maher explained that the collapse of Silicon Valley Bank is “connected” to the rampant government spending during the COVID pandemic and the subsequent inflation.
Former presidential candidate Andrew Yang told Maher on his show Friday that it was the out of control inflation that prompted the Federal Reserve to begin hiking interests rates, which led to the implosion of SVB.
That’s when Maher expounded on Yang’s analysis:
“And interest rates spiked because of inflation, that’s why they had to — okay, so, when uncle sugar was very generous during COVID, that was the result of that,” he said.
“That’s what caused the inflation — a lot of what caused the inflation. You cannot put $6 trillion that you don’t have in people’s pockets and not expect some inflation. That’s what caused this rate [hike] and so, it’s all connected.”
Despite these factors, Treasury Secretary — and former Federal Reserve chair — Janet Yellen insisted on Thursday that the banking system was “sound” after federal regulators bailed out all depositors of SVB and Signature Bank.