Bharat Ramamurti, deputy director for the National Economic Council, joins Lana Zak and Errol Barnett ahead of the Federal Reserve’s decision on interest rates. He discusses the Biden administration’s response to recent bank failures and stubbornly high inflation.
#banking #bankingcrisis #inflation
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LEARN MORE ABOUT: Bank Failures
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The White House’s top economy official recently had some stern words about bank failures and high inflation in the United States. Speaking at a public event, the official warned that failure to address these issues could have serious consequences for the American economy.
Bank failures have been a concern for some time now, with many economists worried about the fragile state of the financial sector. Despite efforts to shore up banks and prevent them from collapsing, the official noted that there are still systemic risks that could lead to a major crisis.
According to the official, one of the biggest risks is the ongoing convergence of traditional banking and non-bank financial institutions. The rise of fintech, which includes online lenders and payment apps, has challenged the traditional banking model and made it harder to regulate the sector.
The official warned that if a fintech firm were to fail, it could have ripple effects throughout the financial system and hurt consumers who rely on those services. While some have argued that fintech firms are less risky than traditional banks because they rely less on deposits, the official cautioned that this perception may not be accurate.
In addition to bank failures, the official also discussed high inflation, which has become a growing concern for many Americans. The official acknowledged that some inflation is normal and even healthy for the economy, but warned that the current level of inflation is higher than what most people are comfortable with.
The official attributed the current inflationary pressures to a number of factors, including supply chain disruptions caused by the pandemic, rising energy prices, and wage pressures as the labor market tightens. While the official expressed confidence that these factors are temporary and will eventually even out, they still represent a challenge for policymakers in the short term.
Overall, the White House’s top economy official’s comments serve as a reminder that there are still significant risks facing the American economy. Addressing these risks will require collective action from policymakers, regulators, and financial institutions, as well as continued vigilance from consumers and investors alike.
Where does the government get the money for anything they do? THEY TAKE IT FROM THE TAXPAYERS AS TAXES. Where does the federal reserve get the money to payback the money it prints? TAXPAYERS WHO PAY TAXES TO GOVERNMENT THEN GOVERNMENT PAYS INTEREST ON FEDERAL RESERVE DEBT. Who pays the fees banks charge customers to pay back these bailouts of other banks? THE PEOPLE WHO PUT MONEY IN THE BANKS. So who is paying for the rescue of the failed banks? YOU AND ME
Health of America is poor. Thousands of people have lost their jobs so not sure how you say jobs are strong.
Inflation, government bonds becoming worthless, bank failures, looming housing crisis and the drums of war beating across the lands. Good job Socialist Democrats.
Bank bankruptcy occurs when either 50% of depositors transfer out of a small bank, or else the biggest 1% of depositors transfer their big deposits out. And Janet Yellen has told these big depositors they must transfer out of small banks and into big banks to be fully FDIC insured.
seven things in a row they did to cause small banks to fail:
1… taking additional cash from them via special FDIC assessment
2… insuring big depositors only if they move deposits out of small banks to big banks
3… During congressional hearings, Yellen told big depositors they will be fully insured only if they move deposits out of small banks
4… bank accounting regulations that let banks look solvent on their books, but aren’t if big depositors all pull their money (mark to maturity instead of mark to market)
5… sucker punch banks with zero interest rates for years, then suddenly jacking up interest rates, causing huge declines in bank assets (long bonds, mortgages).
6… increasing interest rates again even after confidence in bank deposit safety is reeling.
7… throwing economy into a recession by high interest rates, causing many foreclosures, credit cards & car loans).
I trust Democratic Leadership!
the ''you has nothing and you are happy'' agenda
Democratic plan is falling into place nicely isn't it folks………..