The Biden Administration is claiming that banks, and not US Taxpayers, will pay for the bailouts of SVB and Signature Bank.

The funds will supposedly be collected by the Deposit Insurance Fund, which charges quarterly fees to financial institutions.

Can you imagine the mess this charade will cause? For starters, there were many foreign companies, including Chinese entities, who received funding from these banks. U.S. institutions will balk at footing the bill for these speculative loans that ultimately aid the Chinese economy.

Next, "innocent banks" with conservative lending standards will object to paying for the mistakes of their more speculative competitors, who loaned money to risky startups.

This will turn ugly quickly. The solution will be that the fed provides low interest (read free) money to the banks, who then give it to the Deposit Insurance Fund. The money printers kick back on stronger than ever to create these dollars.

After the shell game plays out, the US taxpayers will be on the hook again.

As always, bitcoin fixes this.