Representative Marjorie Taylor Greene has really been on a tear today. She’s already claimed that 300 Americans are murdered a day in Mexico and that the Jan. 6 insurrection was a simple “three-hour riot.” Now, in addition to her blatant lies she’s also demonstrating she has no idea of how the banking system works.
Greene (R-Ga.), tweeted about the ongoing Silicon Valley Bank crisis earlier today, and said maybe the dumbest thing a politician has ever said about banking ever.
There is so much to unpack here. First of all, hedge funds are not FDIC insured. From FDIC.gov: “The FDIC does not insure money invested in stocks, bonds, mutual funds, life insurance policies, annuities or municipal securities, even if these investments are purchased at an insured bank.”
Pretty straightforward. Greene is again making one of those apples to oranges comparisons again. Now, let’s look at how FDIC insurance works. If you make a deposit in a bank, up to $250,000 of that money is insured by the federal government. It’s not a percentage of deposits. The FDIC doesn’t insure some deposits and not others.
This woman does not understand how banks work. This woman makes decisions about the direction of our country. Here’s Brian Krassenstein explaining it and getting a nice jab in at Greene at the same time.
“The bank doesn’t decide how much of their money is FDIC insured. The depositors decide that based on whether they deposit more than the $250,000 limit. To blame the bank for this is about as ignorant as anyone could get on the subject. Why don’t you go back to doing faulty pull ups.”
What will she say next? We bet less than 10% of it will be truthful.