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Remarks by President Biden on Maintaining a Resilient Banking System and Protecting our Historic Economic Recovery - The White House

Third, investors in the banks will not be protected.  They knowingly took a risk and when the risk didn’t pay off, investors lose their money.  That’s how capitalism works.

It’s amusing how the administration loves to trash investors as if they’re evil fat cats.

Silicon Valley Financial Group and Signature Bank were both part of the S&P 500. So if you have an S&P 500 index fund/etf, a total market index fund, or target date retirement funds, you got wiped out.

This is the wisdom of diversification, but it’s so odd that the President is flippant about these losses when most of the shareholders are just normal teachers, firefighters, and engineers investing in their 401k.

Even more perplexing is that all of the uninsured depositors who were saved are the real fat cats of finance, Venture Capital.

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