Following last week's major news about Silicon Valley Bank being closed down by state regulators, the 16th largest bank in the U.S., reminiscence of the 2008 Great Recession began trending on social media.
In 2008, politicians were using a newly coined term "Too Big To Fail", detailing plans of rescuing the country's largest financial institutions with taxpayer money.
Over the weekend, Twitter was bombarded with the looming, ominous inquiry about whether or not Silicon Valley Bank would ask the government for a bailout as we saw in 2008.
While Libertarians, Anarchists, and Austrian Economists inherently oppose bank bailouts, many of the country's taxpayers of all political backgrounds were displeased with the financial industry's receiving $700 Billion from taxpayers.
Following the public's frustration, Congress passed the Dodd-Frank Wall Street Reform and Consumer Act in 2010, which would put a halt on banks being able to get taxpayer-funded bailouts.
However, there would be a new option. Bank Bail-Ins.
Since the banking industry is taking such a massive hit, there is fear of bank runs and even more loss of faith in financial institutions, threatening to put the entire U.S. economy on life support.
Below is a short video to explain the difference between bank bailouts and bank bail-ins, and how you may be affected.
If you found this to be valuable, check out Are Libertarians Against Welfare?
Libertarian Country
Author