President Joe Biden recently announced that US banking systems are secure and in good shape, reassuring citizens concerned about their financial future.
You know the old adage “ How do you know when a politician is lying? It is when their lips are moving” Despite fears of a looming economic crisis due to rising inflation, colossal debt, and possibility of war, Biden has reassured the public that there’s nothing to worry about and our savings are safe.
Daily caller reports, despite the collapses of two major regional banks in March and growing concerns of a widespread banking crisis, President Biden said Friday that American banks were “in pretty good shape” and that depositor funds were “secure.”
According to CNBC, federal regulators shut down Silicon Valley Bank (SVB) March 10 after the financial institution disclosed a $1.8 billion loss on asset sales due to high interest rates. SVB and Signature Bank depositors, which were closed March 12 by regulators, will be able to fully recover their funds, the FDIC announced in partnership with the Treasury Department and the Federal Reserve.
The Biden administration does not offer “blanket insurance” for bank deposits, Treasury Secretary Janet Yellen said Wednesday.
According to businessman Andrew Yang, Silicon Valley Bank had invested heavily in Treasury bonds while interest rates were low, which caused the banks to collapse due to inflation. According to Bloomberg, when the Federal Reserve raised interest rates, the bank lost money, causing financial advisors to advise businesses to withdraw their funds.
Financial institutions in Europe are also feeling the effects of the turmoil that roiled American banks.
As a result of Credit Suisse’s “material weakness” in financial reporting on March 14, its shares collapsed, leading to UBS’s eventual purchase for $2 billion. Due to concerns about Deutsche Bank’s bond default, its shares dropped by 14.5% Friday.
With the economy on a precarious footing, worries of inflation and a debt crisis have been looming large. President Joe Biden has been adamant in his stance that no financial crisis is nigh. Reassuring Americans that the banking system is stable, he has sought to unite with other dubious figures such Canadian Prime Minister Justin Trudeau to make sure the economy stays afloat despite fears of war and debt. Biden has failed to prove himself as a safe pair of hands for US economy, but it is yet to be seen how successful he will be in keeping an economic downturn at bay as America struggles through this uncertain time.
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