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Hello this is Matt on the moon family Sedan Channel just yesterday I published A video indicating that Ripple is going To be issuing a public statement very Soon and it has to do with what Everybody's talking about in the world Of crypto and also it's been discussed In mainstream media but uh Silicon Valley Bank I'm sure you know unless you Have been living under a rock the last Few days you're aware that Silicon Valley Bank has collapsed and it was I Believe the 16th the largest bank in the Entire country with over uh 200 billion Dollars in deposits and uh it it Collapsed quickly that's for damn sure And they're heavy on the tech sector That's who their customer base just Tends to be and uh Tech hasn't been Doing so well lately and all sorts of Firms in the tech sector as a result Withdrew funds the funds were not on Hand in the bank because in the United States we have what is called a Fractional Reserve banking system so Banks don't have to fully cover cover All of the deposits that have been made Rather those deposits can be loaned out And invested in government bonds which Is certainly what happened here and once That was made public then there was a Run on the bank and everything just Collapsed it's a classic Bank Run in That sense and it's just a you know the
Just the perfect storm in terms of the Things that came together to make this Possible specifically with the uh the The government uh bonds that were Purchased at a low interest rate before The FED started hiking interest rates And I went through all that yesterday so I don't want to repeat all that but that In conjunction with the tech sector Retracting and those firms needing Capital so withdrawing that's what led To that now What I published yesterday was a heads Up that Ripple is going to be issuing a Public statement specifically having to Do with Silicon Valley Bank and the Reason that I know that is because David Schwartz who of course is ripples CTO And co-creator of xrp and The xrp Ledger Was asked on Twitter if Ripple has any Exposure to Silicon Valley Bank and um What he said in response was that if Actually I might have it here so I'll Just put it on the screen yeah there we Go somebody asked does Ripple have any Exposure to Silicon Valley Bank and David Schwartz wrote we're going to Issue a statement I can't really say Anything until we do that officially so I think it's a virtual certainty that Ripples got money in Silicon Valley Bank Which isn't exactly ideal so the Question is uh how much and look it Admittedly admit like the total straight
Up this is speculation but we we should Talk through this we should think Through this because frankly Um you know if Ripple has a ton of money In the bank in Silicon Valley Bank and If things don't go well and if they Can't get get those funds back or if They can't get them back anytime soon This could absolutely impact in a worst Case scenario xrp holders in detrimental Fashion and so and just be clear I don't Say that to cause Panic or fear um I Don't think that's even probable but What I'm doing here is engaging in a Little critical thinking exercise Thinking through what could possibly Happen here and in a worst case scenario It could be very bad specifically for Xrp holders which is one I kind of want To just game this out and again not that I think that's the most probable thing And we still have to wait to sit tight And see what Ripple has to say Specifically about this but you know if If you don't have money in Silicon Valley bank then you just say no we Don't have it but if you say if your ass About that and they're like we're going To issue a statement well and fair Enough by the way but if that's the Response they must how could they not I Mean right I'm not crazy for thinking That right but um before going any Further I do be clear I do not have a
Financial background of any kind I'm not Offering Financial advice and you Definitely should not buy or sell Anything because of anything that I say Right I'm just an Enthusiast who enjoys Making YouTube videos about crypto Related topics but just as a hobby and Just for fun Okay so what if Ripple does have a ton Of funds at Silicon Valley Bank because Mind you last time a number was publicly Touted in terms of the amount of money Ripple has in the bank as far as I'm Aware anyway it was Brad garlinghouse And it may have been over a year at this Point ago but at the time he made the Public statement he said Ripple had a Billion dollars in the bank a billion With a B one billion dollars in the bank Now which bank as far as I know they've Never publicly stated So okay now that we know Silicon Valley Bank has collapsed and the the Government's literally taking it over to This point Um what's going to happen here well what If depositors like Ripple assuming that They're a depositor and Silicon Valley Bank is their bank and I'm gonna Hazard A guess that even if it's not their Primary bank which it could be it's it's One of their Banks right that's my Speculation anyway so what if depositors Like Ripple don't get bailed out
You know what if what if Ripple then Loses against the SEC after not getting Bailed out so they don't have their Funds and then Ripple loses against the SEC what if not only do they not have The funds to pay any potential penalty But they don't have funds to appeal all The way up to the Supreme Court if Necessary You know what might that mean for you as An xrp holder You know what what if xrp itself is Found to be a security at the district Court level and ripple financially can't Continue the fight Are you sure you know you don't want to Look remind you I'll just I'm going to Share my stance in this video and this Is like a controversial topic so let's Just have fun talking about this and if You agree with me awesome if you think That I'm wrong that's fine you can tell Me too I love debate I just don't like Aggressive mean arguments then it Becomes not fun but I love to engage in You know intellectual jousting Effectively but um if you're against any A bailout of any kind are you sure you Don't want depositors like Ripple to be Made whole Because look at the the consequences of Such a scenario can Echo throughout the Industry for decades to come in a worst Case scenario and and by the way and
I'll talk more about this in a second Because I want to talk about things in a Specific order I and I'll tell you this Right right here before going any Further I am not in favor of bank Bailouts but but bailing out Banks this Is something I wish more people would Talk I don't see anybody talking about This I'm against the bank being bailout Because they made a mistake government Also The initial cause of the problem so I Blame the government too But I don't blame depositors I'm not Blaming depositors and so I'm I'm Against a bailout for a bank that did a Stupid thing But uh what about the depositors who are Innocent what about the deposit what About a bailout for the depositors here Do you want Ripple to not be made Because they're just a depositor in this Particular scenario here and so I'm Going to share I'm going to flush out That Concept in just a second but first Let me say this You know there may be more Banks You know in the in the tech specific Niche that get hit with bankrupts bank Runs in in coming days even potentially Unless there's unless there actually is Some sort of bailout whether it's for Banks or depositors if there's nothing Uh there could be some additional bank
Runs sooner than later so in that sense The contagion could spread but I am not Convinced that the typical Regional Bank That Services a wide variety of Industries will be impacted you know the Reason Silicon Valley Bank collapsed is That they almost exclusively service the Tech sector and the tech sector has been Having hard times and that's why there Was a run on the bank as I cited at the Outset of this video But this is not the case for most Industries I'm not aware of other Industries that are massively Withdrawing funds from their Banks and Even if they are A bank that has a broad customer Bank as Many do a broad customer base rather as Many banks do they wouldn't be feeling The harm Because if it's true later you're not Gonna one of industry and you cater to How many Industries So you know I don't think that would Harm them especially if they don't have Most deposits invested in low interest Government bonds which is what svb had Said Silicon Valley Bank they had these Low interest government bonds and then The FED hike up interest rates and that Can combined again with uh with the you Know the withdraw funds because Tech Sector wasn't doing so well that's what Caused all this
And so look and I'm gonna I'll tell you Right now Um and I'll get into My my personal opinions on on bailouts Just in general I am against them I I am A capitalist I am a big fan of Capitalism I'm a business owner I have Been for 13 years I am against bailouts Just in a general sense back in the day When the government bailed out General Motors I thought that was repulsive and The government should not be meddling in In the free market system that that's Just my stance and you may agree with me You may disagree with me I don't think They should have done that I think that GM should have just collapsed and then There would it at the right price there Would have been a buyer and it could Have been revived you could revive the Brand uh worst case scenario then you Sell the assets but that's the Government doesn't know best I think That government bungles everything I Understand a general sense and I don't Think we need more government I don't Like it and so I don't I don't want Bailouts but here's the thing what's Happening with uh with this particular Situation is markedly different than That type of bailout which I am Absolutely against and I'm still against The bank bailouts but when it comes to Depositors let's break this down
So look the federal government has Forced us Into our current fractional Reserve Banking system And I mentioned what this is I'm sure Most of you know at this point anyway Everybody's been talking about it but at Fractual Reserve banking system Banks Don't have to keep 100 of deposits on Hand so as long as not 100 of your Customers demand withdrawals then you're Fine if just a few deal on a you know Day-to-day basis you know you couldn't Cover all of your customer withdrawals If they demand it all at once and so It's typically fine but it's pretty Risky right and so that's that's what The fractional Reserve banking system is The government has forced this system on Us it is inherently risky and I'm Against it Let's not pretend that this is the only Way to and I understand that every Modern Nation on the planet is engaging In in this the system I get it Is is this literally the best that Humans can come up with because I just Don't believe I mean if I mean honestly I'm sure there are a lot Of businesses in hindsight that would be Happy to have make sure that all of Their funds are secure and if anything Pay a small fee something you know but But the FED doesn't even allow that so
Look The very nature of the system fractional Reserve banking system the very nature Of it means that at any given moment Over half of deposits in our country are Not backed by anything I kid you not over half or it's right Around half about half of deposits in Our country are not backed by anything And they are not insured because in Order for FDIC to cover it uh it will FDIC only covers up to uh 250 000 in an Account So if you're a business how many Businesses you know have uh larger Accounts well a lot you know even small Businesses would have you know checking Accounts that are substantially larger Than that You can figure that by just imagine how Even if you're in a small business with Five or ten employees what do you think Of salaries just kind of run those Numbers on your head multiply that times 10 or whatever you think it might be you Get up there pretty quick you're above That pretty damn quickly so businesses Are at risk as a result of the system That everybody is forced into again it Is inherently risky and again as a United States citizens we have no choice But to participate in the system we have No choice Inevitably as a result of this
Inherently risky system there will be Times when things go off the rails It which just happened obviously with Silicon Valley Bank and it's not the First time we saw it in 2008 with Lehman Brothers and bear Stearns And look I I'm not saying that the banks Aren't to blame at all but let's go to The source first I blame the Federal Reserve for this Since the Federal Reserve is the party That caused the problem they caught they Set up the system they caused the Problem this is where it initiates It is so since the Federal Reserve is The party that caused the problem it Should then be their responsibility to Fix the problem As as incompetent as the government is This is a problem that even they have The ability to to easily solve I mean I Imagine look if the government were a Person I just imagine that it would just Be wearing its shirt on backwards Walking around all day being oblivious Because it's a damn fool it's a damn Idiot if the government were a human That's the type of human we'd be dealing With you but even the government Could solve this problem because they Put money in the sleigh anyway right This is not hard for them this wouldn't Be But you know the real solution is to end
This system you know the the you know The the fractional Reserve banking System and I prefer that but if I'm not Going to get what I want we're all going To be forced by the government into this Precarious situation as depositors in This flawed system so when the s-word Hits the fan as it obviously will on Occasion and just did the feds better Clean up the damn mess You know for the government to cause This obviously foreseeable problem and Then to push all of the harm and Responsibility onto the innocent Depositors is unconscionable You know the government should not be Allowed to wash their hands of this you Know this disaster that they caused They should not be able to wash their Hands of This Disaster that they caused And I I do blame the bank because you Know this idea of putting over 50 of Deposit funds in the low interest and Then just oh wow there's no way that uh We could have hard times for the our Customers at half our time to withdraw And a bunch of funds and then we'd have To you know provide that and you know There's no way the FED would hike Interest rates no you should have been Aware like this was obviously Irresponsible behavior and as far as I Know Silicon Valley Bank didn't even Break any laws by doing what they did it
Was just Reckless but they did it inside Of the confines of what was legally Allowed within the fractional Reserve Banking system that the government is Forcing on us that's the reason I have a Problem with this and that's also why I I well and again I say let Silicon Valley Bank crumble let that damn Bank Crumble because they are at fault here But what I'm Who I'm saying who is not Who is not to blame here the depositors Are not to blame here it is not their Fault I said earlier in the video I'm against Bailouts in a general sense but if the Government's gonna cause the damn Problem come on Pause the it's just gross the idea of Causing the problem and then oh we mess This up about your problem now sorry Depositors we wrecked your lives your Business is gone oh okay oops sorry you Wouldn't get a sorry from him though So look at um what did I want to pull up Here I had a bunch of tabs open here Um yeah so actually I'll share this one So this was from Eric Voorhees he's the Uh founder of cryptocurrency Exchange Uh shape shift and I think he's a rather Insightful individual And I agree with the vast majority of Stuff I've ever seen him tweet frankly And he wrote know the government Shouldn't bail out or backstop svb
Silicon Valley Bank consider for a Second that svb engaged in the behavior It did in part because of Prior bailouts And backstops let's not double down on Moral hazard yet again and you know what I get that point and that's why I'm Saying don't let that look the bank's Already been taken over by the Government don't let it live but make Sure the depositors are made whole That way it's not encouraging uh you Know the banks to be engaged in Risky Behavior thinking they're going to get Bail out if that's the argument we want To make I actually I respect that Argument that makes sense it makes a ton Of sense So let the bank fail but make sure the Depositors are whole and that that money Can be deposited at a different bank Because and without that too like this Whole system that's being forced on us It's based on trust because there's not Real money back in it it's based on Trust if the government is not going to Do what they need to do to make sure That they're sufficient trust when bad Times hit then it doesn't work anyway Which is why this is a stupid argument This is this is done so I get what he's Saying if you're one of the people that Says no Bank bailout I'm with you I'm Just looking out for their depositors Because imagine this for you imagine
You're working for a company the company Is just a respectable business maybe It's a small business five ten people 15 People and then one day you just don't Get your paycheck you're accompanied Anything wrong they want to pay they're Seeking to pay you but the the bank that You know from your employer that your Employer is working with uh there's a Banker on it now they just they're out Of business and the government's taking Them over and then you don't get paid How long can that company stay in Business Without some sort of Reconciliation making things right for The depositors And you can see how this can quickly get Out of hand and you can and it can spark Additional bankrupts thinking things can Get out of hand very very quickly and if You think that it might be reasonable to Have some sort of You know try and try and take the the Capitalist approach which I am for by The way again I'm just the reason I'm Not here on this issue it's because the Government clearly is the problem here When GM was failing GM was the problem Right here the government is the problem It's totally different in that sense and So that's why when you if you have the Idea and I thought about throw this Through too it's like okay well what About uh
What about just having another bank just Buy them up and maybe something like That actually does happen if it Magically works and you if you can find A bank that's willing to take on that Debt okay super duper magical but the Question becomes can you get that deal Done by Monday because you And I'll talk about that more in a Separate video but if you can't get this A resolution ASAP this thing is going to Get a real out of control real quick and Businesses are going to go belly up They're going to cease to exist and That's going to harm real families real People And it's because of the for precarious Situation that the government put us in By forcing this fractional Reserve Banking system office that's why I keep Going back to them if if another company But I'm like no no bailouts no bailouts Your your world capitalists out here you Know you're entrepreneurs you failed you Don't deserve a bailout just fail that's It that's how this works that's the Market telling you you did something Wrong you made mistakes This is the government forcing this on Us though it's just it's different it Just fundamentally is different and and Just to bring the point home here Um and I came across this thanks to Attorney John Deaton there was this
Thread shared by somebody named Lindsay Who is an entrepreneur started a Business a few years ago I read this Whole thread and I'm not going to read The whole thing just the very top here So you can get a feel for it but it's if You are under the impression that it's a Bunch of uber Rich tech people that have That are the depositors that's I mean There are some of those Ripple it looks Like Ripple is probably one of them in Fact but maybe perhaps not exclusively Right definitely not exclusively in fact Look at this so this woman named Lindsay Uh wrote this side it was like 23 tweets So I'm going to read the top two only But she said hi I'm Lindsay a bit about Me Ohio mother of four I employ a team Of 15 as a startup founder and CEO of Strong suit I drive a used Honda Odyssey Husband works in manufacturing the Financial future of my company team and Family are at risk with the collapse of Silicon Valley Bank the collapse of Silicon Valley Bank might look like a One percent problem that only impacts The coastal Tech Elite not true this Impacts small businesses made up of Hard-working people making modest Mortgage payments in the midwest this Impacts parents putting dinner on the Table and so folks even because I see This this whole argument it's just the One person I'm not pretending like yeah
Of course there's going to be some Insanely wealthy people that are falling Victim to this I got But it's not just that and that's not a Bad it's not a good argument anyway Because even those uber wealthy people They employ like think about Ripple they Employ what like seven or eight hundred People I think at this point Those are real people with real families Who aren't all necessarily Rich their Employees working at a company So I always think that's a bad argument Anyway and so Attorney John Dean Retweeted that and he he seems to have a Similar perspective to me he wrote some People were surprised I said I was torn About a bailout regarding Silicon Valley Bank I'm not torn over anything involving Shareholders or investors that's a zero I'm torn because of two things number One avoiding complete concentration in Banking into thousands of stories like This one and then he shared Lindsay's Story there and by the way Lindsay she Actually upon news of this breaking About their potential problems with svb Before they went belly up she actually Initiated that day a wire transfer to Get their money out and she came back to Check in the next day and it failed There was no way for her to do anything About it she's just trying to run a
Business do the right thing an Entrepreneur and there's all sorts of Individuals like that It's so to just have this quality and I Was I was debating this woman before I Recorded this video Uh who had the exact opposite opening me So like I blame I just I'm not a fan of Government in general you know it's just When it comes to anything economic I Just lean right and politically I just I Just do if you're talking economic stuff Yeah absolutely and so I I'm here I am Blaming the government like I do all the Time because there are a bunch of f UPS All the damn time and so in this debate On Twitter I was blaming the government And also the bank and then this woman I Was debating was blaming the depositors And the bank and not the government it Was like the exact opposite of what it's Just the inverse of what I was doing I'm Like to blame the depositors my God to What degree should should depositors be Consistently engaging in due diligence And even outside of that even if you say The depositors to blame like a lot of These are businesses and what is it the Employees fall to two for not forcing Their employers to engage in better due Diligence is this the world we want to Live in like it shouldn't be like this When you're forced into the system as a Depositor in the first place if
Everything's not going to be backed one To one well then you bet if you're going To force that system on us you better Back it up and so I blame the government And I blame the bank for making Bone-headed decisions and I don't blame The depositors And so far so so funny engagement it's Just this woman just the exact opposite Of like wow blame the depositors and and You're an apologist for the government Totally 180 from the direction that I'm Going on this and so I'm sure some of You agree with me I'm sure some of you Don't and that's fine um and I'm willing To be persuaded like my thoughts on this Are somewhat fluid I've spent a lot of Time thinking about this over the last Couple days in particular because I I Really am So against bailouts but it really is Fundamentally different when you're Talking about the cover the government Causing this problem rather than Capitalism in the free market uh Resulting in this when you're talking About like I said with GM is my example That's the free market that's capitalism They messed up they should have just Gone out of business and been bought out Or they should have been uh you know the Vulture should have swooped in and Bought the assets and picked the company Apart so either one of those would have
Been fine because government doesn't Know best and instead here though this Is completely different where this is a System where we're forced into it we Have no choice If you're in the United States and you Deposit you have no choice you're in the Fractional Reserve banking system and And the government knows it's risky they Know this can happen even if you have Tight risk management and the banks Being super responsible under specific Circumstances Bank runs can and will Still happen This is the government's fault first Second it's the banks And it's not the depositor's fault So that's my stance you guys tell me What if you think I'm right or wrong I Think it's fun to debate and have Thoughtful discourse and stuff like this Um but you know as far as it pertains to Ripple that's that's why I wanted to Bring this up in the first place and There's kind of fleshed out some of my Thoughts in general in this this topic But as far as it pertains to Ripple do You want like if you think that there Shouldn't be like the depositor Shouldn't be made whole if if that I Hope I was persuased enough that you Don't think that anymore because I'm Doing my best I'm trying to be Persuasive but um if your stance is that
Depositor should not be made whole then What so so like Ripple literally they They just oops the Doodles we deposit Our money with her with a wrong bank and That's it it's just game over and that's Fair I don't see how that would be fair And and you know I I get the argument Where people bring up it's like so then The taxpayers have to pay for it but That's the point but the government set It up You know I might have had there was one I don't know if I have it up here if I Can find uh it real quick I'll sh yeah Maybe I don't have it anymore Let me flip through this there was Somebody had a a reasonable and actually Maybe oh you know maybe it was this one Yeah so there's this guy named David Sacks Um I hadn't heard of him before but he's Got 591 000 followers so I guess he's Famous I don't know very popular maybe You know who he is but uh Venture Capitalistic craft Adventures I just Happen to not know but um he wrote The Following he said blaming depositors for Bank failure is like placing the blame For medical malpractice on patients Because they didn't do a good enough job Shopping for a doctor Depositors expect the FED to ensure that Banks are safe now that's not a Perfect Analogy but it's pretty good
Um there's somebody named JB who found a Hole in it and it's a pretty good point To bring up as a retort and he said it Was just a question but he said when you Sue a doctor for malpractice does Your Settlement come from taxpayers and so Obviously the answer there would be no So it's not perfectly Apples to Apples But so I just responded with the Following no because that's true like The settlement doesn't it doesn't come From taxpayers and in this case it would Come from taxpayers but again the Government government creates the Problems like so I wrote no but it's Also the case that every depositor in The United States is forced by the Federal Reserve into a system called Fractional Reserve banking which is Inherently risky depositors did not Consent to participating in this risky System rather they have no choice and so Think about this uh it's always Government screwing stuff up it's but If if there isn't If there isn't trust and confidence in The system then none of this matters Anyway none of it because the whole Thing falls apart this whole thing is a Trust system So you do what you have to do since it's A bogus BS flawed system that shouldn't Exist not in this form since it is Though
What you have to do if you don't see When things are completely Fall Apart You've got to make sure that people are Able to retain that confidence It's just what it is and and I don't Want the system I I don't want there to Be uh you know bailouts even for Depositors I don't I don't want that to Have to happen but I'll take that over The alternative for sure I don't want That to happen if I had my way then the System wouldn't exist in its current Form You know Federal Reserve banking no you Do the responsible thing and don't tell Me an academy there wasn't always Fractional Reserve banking don't tell me It can't exist in that way It's just a quick way of spurring the Economy and I get that I understand why It's attractive because every time There's a deposit you loan out like 90 Of it up to that and then that basically Creates new money and it Spurs economic Activity I get the appeal of it But then this happens and you can have Entire economies collapse and they have And historically as a result of this Stuff Playing with fire Let me know what you think I'm not a Financial advisor you should not buy or Sell anything because of anything I say Are right that would be a very very very
Bad idea until next time to the Moon Family sedan
