Biden admin has been spending like crazy and set up a boiler that's really about to explode: Art Laffer

Former Reagan economist Art Laffer explores the consequences of Silicon Valley Bank collapse on "America Reports."

ART LAFFER: The Fed has on its balance sheet about eight and a half trillion dollars worth of bonds. That's just totally out of control. It should not have anything like that. The administration has been spending crazily and now wants to push higher taxes, all of which are in the wrong direction. 

They've set up a boiler that's really about to explode and this is the catalyst here. I mean, Silicon Valley Bank is the catalyst. It's sort of like Long-Term Capital Management was or Lehman Brothers and what they're trying to now, now that the weaknesses have been shown so clearly, as Tammy pointed out, they're trying to control it from going further and this they had to do in the spot market, really. They had to. But it's their [the Biden administration's] policies that need to be changed and as Tammy said, Biden needs to be fired and so does Powell, not the people in Silicon Valley Bank.