The failure of Silicon Valley Bank (SVB) on Friday is similar to the bank collapses of 2008, but the reasons behind the failures differ, former New York City Mayor Rudy Giuliani told Newsmax.
"I mean, similar in the sense of complete negligence, lack of attention to fundamental economic principles," Giuliani said Monday on "Eric Bolling The Balance."
In 2008, as Giuliani noted, "these were mortgages that were basically bankrupt mortgages piled upon bankrupt mortgages in order to give people homes they couldn't afford."
Today, countered Giuliani, "We're dealing with out-of-control spending that has been catastrophic. It's at World War II levels."
Back then, however, investment in the economy during World War II created jobs and businesses, lamented Giuliani.
"The money we're putting in now, it's not infrastructure money, its dependency money. All these trillions of dollars are going in so that people don't have to work and can take care of their problems," said Giuliani.
"But they don't produce wealth for anyone, including them. So it is a big, big difference," he added.
Instead, Giuliani said that an enormous amount of money is being "printed" by the Federal Reserve "to the point of you wonder when does the printing stop. And when does the country go under?"
Also, Giuliani explained that left-leaning banks such as SVB "have substituted a new principle called, 'Don't worry about whether you make a profit; just worry about whether you satisfy the woke green left-wing communist agenda.'"
In such a scenario, "a business deal might look great, but it would involve too much coal," said Giuliani.
"That would make a lot of money for your stockholders." Instead, "you go with a deal with wind that's gonna basically bankrupt you. But you're nice and pure and holy," Giuliani continued.
"SVB was a particularly woke bank. And to a very large extent should not be entirely bailed out because they're using your money and my money to fund their political objectives," added Giuliani.
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