Former Labor Secretary Robert Reich joins Morning Joe to discuss recent bank failures and the decrease in faith in America’s banking system. Reich suggests that uncertainty in the economy is causing fear, and calls for the Fed to stop raising interest rates to avoid a recession.
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Former Labor Secretary Robert Reich has warned of the potential dangers that could lead to a recession and further economic hardship. Reich, who served under President Bill Clinton, has warned that the banking system in America poses a significant threat to the economy as a whole.
According to Reich, the U.S. banking system has become too concentrated in the hands of a few large banks, which could lead to a potential systemic risk. Furthermore, many of these banks have become too big to fail, which could have disastrous consequences if they were to collapse.
Another concern that Reich has raised is the rapid rise of wealth inequality in America. He has warned that if the gap between the rich and poor continues to widen, it could lead to social unrest and further economic instability. The top 1% of Americans own more wealth than the bottom 90%, and this disparity is only getting worse.
Reich has also criticized the current political climate, calling it “toxic” and “divisive.” He believes that the lack of cooperation and compromise among politicians makes it difficult to address the underlying issues that are contributing to economic instability.
To address these issues, Reich has called for greater regulation of the banking sector, including breaking up the large banks that pose a systemic risk. He has also called for policies that would promote greater income equality, such as increasing the minimum wage and expanding social safety nets.
Reich’s warnings come at a time when many economists are predicting a potential recession in the near future. The U.S. economy has been growing for over a decade, and many believe that it is overdue for a downturn. With the ongoing trade war with China, uncertainty in the global economy, and a potential economic slowdown in Europe, the risks of a recession are higher than they have been in years.
In conclusion, Robert Reich’s warnings about the dangers of the banking system and the potential for a recession are important reminders of the underlying economic issues that still plague America. It is crucial that policymakers take these warnings seriously and implement policies that will address the underlying issues that threaten the stability of the economy. Failure to do so could result in severe economic hardship for millions of Americans.
The Oligarchs "BANK" on our ignorance/inattententiveness from their robberbaron tactics!
Nationalize the banking system and take it out of the hands of the Privateers bent on breaking us, the US and the World. After all, they have all of the money and thanks to the supreme court, all of the "Free" speech to lie both to our face and into our financial graves.
It's personally why I refer to them all as BANKSTERS!
Separate the Investment banks from the Commercial Deposit banks.
Tell Wall street to stop gambling with OUR money!!!
Paul Krugman made the point when people get scared and withdraw money out of banks it is deflationary as that money is now out of circulation. It has the same affect as interest rate hikes. There maybe unintended consequences that the Feds have not took into consideration.
I think you did a good job! Glad to know another person who sleeps like me
Robert Reich is THE VOICE for insight into so many national issues and should be read (& heard) by all concerned with how ‘where we’ve been’ is imperative to ‘where we are headed’ and how we get there in better shape, TOGETHER! Smart, articulate people ARE AWESOME!
The part you left out was the need to control inflation by issuing price controls and windfall profits taxes rather than raising interest rates.
Secretary / Professor Reich, you are a national treasure. Your opinions on socio-economic matters are among the most valued of anyone's in the USA. I sincerely hope you live to be 100, but this business of waking up at 3am must stop for you to get there. You will induce a stroke pushing yourself too hard. Nonetheless, I am so grateful for your appearances. Bless you, Sir.
You did great, Bob!
Nobody from Morning Joe's tribe had the knowledge to ask the right questions…
These comments are riddled with posts from supposedly multiple people having a conersation, which is actually spam. They are trying to get you to Google a specific name to find someone to invest your money with and even suggest pulling thousands out of your bank. I guess they are hoping to cause a bank run which sends all your money to them. Do not be taken in by the supposed "conversation".
Robert Reich is the GOAT!
Recession is most likely the result of an external factor. For the first time in decades, the United States is losing its clout as a federal reserve currency. They don't have any more economies to use to control inflation, and less money is being spent on stock and oil trading than in the past. They all lend support to the idea that a new multilateral world order is in the works.
THE FED is Centralizing all banks so you pull out your money from the small banks to the Big Banks then it will be easy for them to solve the problem of inflation will be to introduce there MARK OF THE BEAST 666 FEDCOIN CBDC. PHYSICAL GOLD AND SILVER BUY IT, LIVE IT, LOVE IT. AUDIT THE FED
A perfect storm is brewing in the United States. Inflation, bank collapse, severe drought in the agricultural belt, recession, food shortages, diesel fuel and heating oil shortages, baby formula shortages, available automobile shortages and prices, the price of living place. <It's all coming together and it could lead to a real disaster towards the end of this year (or sooner). With inflation currently at about 6%, my primary concern is how to maximize my savings/retirement fund of about $300k which has been sitting duck since forever with zero to no gains.>
I agree… stop raising interest rates. Some people will have to file bankruptcy if they keep raising rates… smh. What are they thinking???
A recession has started and if the G.O.P. plays with national debt limit it would be a real black swan catastrophe!
Although we are in a global recession, which is characterized by a decline in annual global per capita income, is relatively uncommon due to the faster growth rates of emerging markets like China, in comparison to developed economies. I have pulled out more than $340k from my bank. After all, the FDIC covers only up to $250,000, and the implosion could have bad effect. Looking to invest into the stock market now. Does anyone know how I could go about it?
You guys are literally damaging society by pretending a recession ‘may’ happen. It’s coming on the horizon and you people do nothing. The blood will be on your hands.
Go Woke Go Broke is what needs to be understood. Loaning billions out to green tech firms who are not going to be turning any profits has consequences.
High faith in financial institutions? What a complete failure of a survey question. Obscures the more important reality of what portion of people think that their deposits are safe
Earning no interest at the bank was my first clue. That happened 15 years ago. Capitalism isn't Democracy, for sure.
Bankers have big boot straps while the poor and homeless get no boots. The wealthy have plenty of money to get them through hard times and make even more money from the suffering of the poor.
The Republicans House holding the Debt Ceiling hostage does not help. It just adds to the lack of confidence in the banking system, and in Government! Thus we have a Big Trump MAGA Problem.
2006-2021
People will be kicking themselves in few week's If they miss The Opportunity Too Buy and Invest In Bitcoin as It retracing…..BE WISE.
Joe Biden's inflation is what triggered high interest rates that brought about the bank crisis as some banks had invested – gambled – on low interest rate securities!
Didn't the Fed say cutting 3 million jobs was necessary? Cutting whose jobs? Sometimes l think the Fed wants to see America fail.
Excellent guest in Robert Reiich. Some common sense. Senator Elizabeth Warren agrees also.
Thank you. Truth matters
Question: Is this possibly even a Fed's ploy to implement CBDC so as to have total control over the population?
Thanks Trump.
It’s not just banking! The medical industry uses Americans as human Guinea pigs. Johnson and Johnson left me in pain for life!
F.O.M.C. should have paused at this recent meeting, and not kicked banks with another rate increase when they were already reeling. Fighting their inflation target could have waited for their next meeting.
Great respect for mr. Robert Reich, he is the best,
Robert 3rd Reich of course won't put the blame on the inflation creating Democrats