Half of the companies in the U.S. devoted to climate change and biotech banked with the now-failed Silicon Valley Bank (SVB).
Most of these companies weren’t filling some vital market need. Rather, as the Journal, SVB was beloved for its willingness to offer “banking services to startups that often weren’t profitable, in some cases didn’t have a product, and would otherwise have a hard time getting a line of credit or a loan from a larger bank.” One tech entrepreneur provided law.com a more scathing description of SVB’s products: “They’re basically subprime business loans.
What inspires a bank to disregard risk and shower money on products or services that nobody is clamoring to buy? One answer is easy money and misguided regulation, which washed dollars into the economy even as it pushed banks like SVB to load up on sovereign debt, lulled by a Federal Reserve-fed belief that interest rates would stay near zero forever. The other? Washington handouts, via President Biden’s effort to engineer a climate industry that otherwise wouldn’t exist.
She argues that the same Democrat-led government that funded failed enterprises like Solyndra in the 2009 “stimulus” — managed by then Vice President Joe Biden — is making the same mistake again.in 2020, Biden took personal credit in 2009 for an investment by Fisker Automotive in Delaware, backed by the stimulus, to produce electric cars. The venture failed without one car being produced.on Sirius XM Patriot on Sunday evenings from 7 p.m. to 10 p.m. ET .
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