Billionaire Doubles Down

Chamath Palihapitiya made news this week when he stated on CNBC that the Fed needs to stop bailing out billionaires and support mainstreet.

It is the average worker who is taking the hit for the actions of incompetent and corrupt CEOs and boards. According to Palihapitiya, it is time to "wipe them out".

He also asserted the Fed needs to get it right this time. His plan is to give each American money as opposed to bailing out the zombie companies.

This weekend, he doubled down on that viewpoint. He feels that Wall Street bailouts are only going to crater things even further.

...the US government should support individual Americans directly by giving them larger payments instead of funneling massive emergency funds and stimulus packages to rescue the wealthy.

“You can’t just bail folks out financially for being financially greedy. It’s unfair. And what we did in 2008 was incomplete. All we did was ship risk off balance sheet…This time around you have to pin these guys down.”

Source

Palihapitiya is a former executive at Facebook and present CEO of Social Capital. He is a billionaire who is speaking out against the support of the greedy.

He is also a huge believer in Bitcoin, calling it "Schmuck Insurance" against the Fed driven financial system.

In the last few weeks, 17 million Americans filed for unemployment. This is a number that is destined to rise over the next month or two. Part of the stimulus is an effort being made to keep people employed by loaning companies money to retain them. If a company meets certain requirements, it will have the loans forgiven.

The Wall Street/Mainstreet argument has been raging for years. It is now starting to come to a head as more people are becoming vocal about it.

Unfortunately, the Fed is going to keep going to the usual playbook which will support Wall Street institutions while allowing the average person flail.