In the fallout of Silicon Valley Bank’s collapse, debate surrounds whether the government is bailing out the bank.
Lance Roberts, chief investment strategist at RIA advisors, argues that ultimately, all the money used to support or to guarantee depositors or to support banks will come from taxpayers.
He also says that we should let the bank collapse without help. He believes when capitalism is allowed to work as intended, there will be winners and losers. It means that banks have to be able to fail.
Looking forward to how the banking turmoil will impact the federal reserve’s meeting next week, Roberts says that he still expects the U.S. central bank to hike interest rates, but it will soften its language in terms of its inflation fight.