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Impact of Government Intervention on Banking Consolidation
The act of government intervention and saving banks during crises is often seen as a positive short-term solution, but it leads to the consolidation of equity into fewer hands, making the overall financial system less stable over an extended period. The rescue and stimulus provided to banks, such as the Silicon Valley bank collapse in 2023, are driving towards a much bigger systemic failure in the future. The public is often unaware of the massive stimulus directed at banks and the potential consequences of such actions, which are contributing to economic ruin. There is a need for more study and awareness about the long-term impacts of government intervention and banking consolidation.