The Misunderstood Reality of Bank Bailouts.

The recent government rescue of Silicon Valley Bank and Signature Bank has sparked controversy over the use of taxpayer money to bail out failing banks. However, the government's intervention is not a new phenomenon, as both Republican and Democratic administrations have done the same in the past. While the 2008 bailouts were deeply unpopular, they prevented a depression that could have persisted to this day. The Biden administration has a chance to apply the lessons learned from 2008 and execute the 2023 bailouts in ways that make them more palatable than the 2008 rescues.