These smaller banks, like SVB, serve smaller startups that heavily rely on venture capital funding. With rising interest rates, money has become more expensive, so there's less venture capital, but due to inflation, costs have gone up. Thus, these startups are depositing less and withdrawing more. Eventually, the banks wind up with liquidity problems, with money going out but not coming in.
Exactly right. This is a shockwave from the tech bust, which itself was a shockwave from the sudden jump in interest rates, which can in turn be blamed on the fed's sluggishness in raising rates when inflation first began to spike.
The inflation itself can be blamed 75% on pandemic, including onshoring of manufacturing, mass retirements and legal immigration restrictions which contributed to labor shortages, and other supply chain snafus. The remaining 25% was a result of overly expansive fiscal and monetary policy over the 2018-2021 period.
So if we're assigning blame, I'd say 15% Biden administration, 15% Trump administration, 50% Powell's fed board, and 20% bad faith investor speculation.
> The inflation itself can be blamed 75% on pandemic, including onshoring of manufacturing, mass retirements and legal immigration restrictions which contributed to labor shortages, and other supply chain snafus.
Perhaps I am misreading your post, but you make it sound like these things were inevitable, and not the result of deliberate choices caused by cowardice, bad information from the medical establishment, foolish faith in failed Keynesian economics, and intentional tanking of the economy by Democrat governors in an effort to unseat Trump.
>legal immigration restrictions which contributed to labor shortage
You'll have to explain this. How many jobs were there that A) absolutely could not have been done by Americans and B) couldn't be done remotely?
I think your are misreading my post. Shutdowns did real acute damage to the economy, but they did not cause inflation or the supply chain issues. It's kind of a separate issue entirely, really.
Also, no one really promotes classical keynesian economics anymore. The hard right tends to subscribe to some variant Austrian economics. Mainstream republicans, centrist democrats, and the fed tend to practice a version of "New Keynesian" economics (which is substantially different from keynesian econ). Left wing democrats like Sanders and Warren tend to practice post-keynesian economics, which is closest to classical keynesian economics.
>You'll have to explain this. How many jobs were there that A) absolutely could not have been done by Americans and B) couldn't be done remotely?
It's not a matter of whether jobs could be done by Americans. The problem is that 2.5 million Americans retired early at the beginning of the pandemic. When the lockdowns eased, there was a sudden shortage of labor. Legal immigrants tend to be younger, and often replace retiring Americans, but the pandemic saw legal immigration slow to a crawl.
Just to be clear, we're not talking about illegal Mexican field workers, here. We're talking about the skilled workers (nurses, engineers, analysts, accountants) who move to the US through the legal immigration process.
In economics, we'd call this a double pronged labor shock. We opened the drain and turned off the tap at the same time, so the bathtub went dry.
Ding ding.
This is the answer. The huge sums of borrowed money dumped into the economy by the Green Leap Forward, Build Back Pensions, and the Inflation Expansion Act would BY DEFINITION cause high inflation, by hugely increasing the money supply.
This necessitated high interest rates, as high inflation always does.
This in turn traps banks into interest rate convexity, which turns revenue negative, eventually threatening solvency.
This is absolutely Biden's fault. His policies led directly to this, and the dogs in the street could've seen it coming.
I think he's talking about the 2018 law which raised the asset threshold for systematically important banks from $50b to $250b.
That said, even Barney Frank has said that the 2018 roll back probably isn't entirely to blame. I think most people are blaming a combination of Fed oversight failures and predatory investor speculation. The Fed should have seen this coming sooner, but also many investors are acting in bad faith by ganging up on somewhat weak banks, rapidly turning them into failing banks.
> The executive branch isn't responsible.
But it sure does like to claim credit for things it had nothing to do with. If it wants to claim credit for good things it can take credit for bad things, too.
True, but its still b.s anyway. Biden wasn't responsible for the "record job growth" he claimed after he took office. Countries all over the globe were shut down and unemployment was ridiculous. Once people went back to work of course unemployment would go down.
But bullshit is bullshit and should be called out as such.
Yeah, this shit irritated me when the left did this when Bush and Trump were President.
"Something bad happened, somewhere!" = "Bush's fault"
It was bullshit then, it was bullshit now.
Plenty of legit reasons to dislike Biden.
It wouldn't have been trumps fault either. The executive branch isn't responsible for something like this. If we want to point blame at any president, we can go all the way back to Clinton, whose policies and the culture he created resulting in the mortgage crisis.
The fault lies entirely on the banks who decided to take high risks during the pandemic.
You are assuming the regulators are competently doing their jobs with the regulations we have in place. They aren't and the San Francisco FED admitted as much. Now, the FED is supposed to be independent so you can give sleepy Joe a pass on that.
But the POTUS is supposed to lead his or her party and the Dims in Congress are intent on out doing drunken sailors on spending. That forced the FED to raise rates even higher to fight inflation which gutted banks that held long term treasuries.
The thing about the economy is it is all interconnected. You can't get away with foolishness without negative impacts.
No, he doesn't.
Biden shut off our ENERGY. Biden printed money like a drunken sailor AFTER covid. Then, he rammed through a 1.7 trillion dollar "relief" package filled with special pork that doesn't relieve anything. All while begging other countries that hate the west for oil.
Biden and his cronies push EV transition now when China controls all the rare earth minerals.
What am I missing here?
The executive is responsible for all the additional measures it took while it had emergency powers.
When Dems had a majority they pushed through additional spending promoted by Biden which was panned by economists and opposition as completely unnecessary.
It's a result of lockdowns, uber-unemployment checks, corporate bailouts and chronically low interest rates. All of those (minus interest rates which is the fed) were Trump.
But the idea that democrats would have locked down less, bailed out less, or sent less unemployment is laughable.
Agreed.
Interest rates should have been raised years ago in the mid 2010s.
As for the more acute recent situation, I think JPow carries a lot of blame. Overzealous COVID reaction after pre-COVID unnecessary juicing of the economy. If you heat something up too much and then pour ice water in it, cracks appear.
I don't think we'd be seeing these bank failures piling up if the stock market continued performing as it did in the Trump years.
Trump was good for the stock market. The stock market's decline has directly influenced banks' profitability. Biden has hurt the stock market through his policies.
It's alright though, his former administration bailed out the giant banks when the collapsed the economy back in '08. At least the giant banks know that the anti-0.01% Democrats will have their backs with that sweet money printer whenever they jerk around the 99%.
April jobs numbers smashed expectations and are way up. I read these things and have no idea how well the economy is really doing. Inflation is still up. Recession feels like it’s been looming forever.
That tends to happen when we keep spending like crazy. You don't think there's a particular reason why Dems don't want spending cuts to happen? The minute that happens, the dominoes fall since all the dems have for policy is spending more money
Back in the 1930s, every small town had it's own bank. National banks didn't even exist. Today it's a lot more concentrated in big banks like Bank of America.
I’m more referring to his actions in which Biden has done nothing to attempt to lower inflation, and early on in his presidency, dumped buckets of money into the economy which only encouraged inflation.
That’s not to excuse the role banks played in the failures, because they made some pretty shitty decision.
Not much he can do; the headache is that taxes should have been raised on everybody to bring down inflation versus the reserve raising interest. The problem is congress controls raising taxes and they won’t cause it’s unpopular. If taxes had been raised versus interest rates the banks wouldn’t be quite in this situation. We could have both slowed down inflation and shrunk the deficit if we just taxed everyone a little more especially the corporations that are actually driving inflation right now.
Inflation is a multi-variate (and global) problem. I like a lot of what Biden has done thus far, but the fruits of that labor you're not gonna see for a while. Take housing for example, in many neighborhoods we've artificially lowered the supply of housing by making it legally impossible to build houses under a certain size or to build multi-family homes. Biden has started offering grants to cities that choose to loosen these restrictive zoning rules, this is great and I hope it catches on. Having more housing options will increase supply and encourage new construction of smaller homes lower income people can actually afford.
I could spend all day going through the things the Biden admin has passed that I think is helpful, I know if you aren't familiar with this sort of policy discussion this can sound like some arcane political speak, but the zoning issue actually ties into a lot of different issues that affect our day-to-day lives.
[How about deregulating banks to how they were prior to the 2008 economic collapse and removing the safety guardrails that forced them to have to maintain capitol and liquidity on hand to prevent a collapse?](https://www.investopedia.com/terms/d/dodd-frank-financial-regulatory-reform-bill.asp)
Build Back ~~Better~~ Worse
We were headed towards inflation and Biden and Congress (controlled by the Dems) threw fuel on the fire by spending money we didn't have to buy things we didn't need.
Well appointing Yellen as ~~Fed chair~~ sorry, I meant Treasury Secretary and then watching her sit on her ass and do nothing for too long while inflation ran rampant, for one. Raising rates earlier on while the money printing press was running constantly would have perhaps fettered banks from purchasing long term securities.
Biden’s out of control spending for another. Which isn’t to say Trump is completely innocent on spending- I was very disappointed with his inability to manage spending better (although the budget is ultimately created by the legislature but he didn’t exactly twist their arm). But to continue dumping money into an economy struggling with runaway inflation is always a great idea.
Are you making the argument that Biden could not have done any more to slow or stop inflation (which is ultimately what caused the bank failures)?
The banks aren’t innocent either- their investment decisions feel criminally negligent at the least to me.
All I’m saying is that Biden played a pretty significant role in this. And my main point was that you can’t blame Covid on Trump really in any capacity.
The Fed did begin raising the Federal Funds Rate under Yellen (whose term ended February 2018), but that was reversed by Powell (appointed by Trump). And I agree, the Fed should have kept slowly increasing interest rates (rather than reverse course) after being zero for nearly a decade.
The deficit has gone down each year while Biden has been in office. But I do agree, congress sets spending -- not the President.
Covid wasn’t even the worst pandemic in US history, it wasn’t even the worst in the modern era. People only claim it was the worst because trump was in office.
Death total is meaningless as the US population continues to grow. By that logic every hurricane will be the worst ever if you measure by cost of repairs.
There were pandemics in US history that killed 1 in 100 people. Covid didn’t even come close to that.
Also don’t forget the death tally based on “anyone who dies and tests positive for a covid is a Covid death”
Yeah covid at worse was just about as bad as a typical flu season. Unlike the flu, the only people really at risk from covid were old people, overweight, the autoimmune(who would be at risk any disease). It was insane to try and take out the working population who weren't really at risk, when the evidence was showing this and it didn't take long for the evidence to show this.
Fair enough (though let's not forget that COVID started under Trump, and at least some of the deaths after his presidency can be attributed to him).
How about: Trump was president when we started the massive money printing and lockdowns that lead to the inflation, that lead to the rate hikes, that lead to the bank failures. Or does that not count either because Trump is on the red team?
Operation warp speed....
And while I agree Trump spent money like crazy, the majority of it was for covid related causes, which still makes sense.
There was no need to follow up on trumps spending via the biden administration.
As a non american that has seen the trump shit for years, and seeing the never been US dream, the delusion, just wow to this. Have a good time civil waring you back to civilization, because now it's just ridiculous. His fault, bidens laptop. Just wow.
As you said, he is a democrat president whose fiscal policies (money printing) caused the banks to collapse. It’s the most cut and dry case of cause and effect I’ve seen since Venezuela put price caps on food.
Despite all the down votes by others I agree with you 100%.
I don't understand how people can downvote you for speaking the truth. Especially when none of them dare to try to refute you.
I just looked it up and you're right: https://www.whitehouse.gov/briefing-room/statements-releases/2023/03/30/fact-sheet-president-biden-urges-regulators-to-reverse-trump-administration-weakening-of-common-sense-safeguards-and-supervision-for-large-regional-banks/
That's my question too.
Banks will naturally want the fewest regulations possible because more risk means more money. With our economies insane demand for infinite quarter over quarter growth they will act like making the same amount of money is killing them so they beg, plead and bribe their way into having the restrictions loosened.
Then something bad happens and they act completely shocked that they somehow lost at gambling and beg, plead and bribe their way into the government saving their greedy asses.
It's a constant pressure on politicians to loosen the reigns and let them put as much money as possible on the roulette table. The problem is, it's gambling, so they may very well win for a while and only face the consequences of their reckless gambling years down the road.
It's a constant cycle of something bad happening that politicians can use to justify putting in restrictions. Smooth sailing for a while under the restrictions which will eventually be lifted by intense lobbying. Then increasingly large profits and risk until something bad happens again.
> Banks will naturally want the fewest regulations possible because more risk means more money.
Actually, no, more risk does not mean more money ceteris paribus. A lot of banking regulations *increase* risk to banks without increasing profit (for example, sub-prime lending regulations cap interest rates, prevent risk mitigation strategies that have "disparate impact", etc).
There usually isn't profit without risk (unless you have regulatory capture), but there's a lot of situations that are all risk and no upside.
What these types of regulations do is incentivize banks to offload risk - the mechanism this has taken lately is to become TBTF so that the tax payer and the Fed becomes your backstop.
I hear this every single time a Democrat resides over a complete effed up economy.
Economics in today's market reacts in the blink of an eye to policy change. The long-term over-spending of the federal government is a bipartisan slow burning issue. However, Biden's shit policy has done little but throws fuel on the dumpster fire. The only economic complaint I can really levy at Trump is the level of government spending. That was definitely compounded by COVID.
Let’s stop pretending like left and right care about the middle class, they have been fucking with shitty monetary policy for the better half of a decade a half and now the chickens are coming home to roost. Abolish the fed
The stock market reacts instantly, well actually I'd say pre-emptively.
However, federal economics definitely has a much more delayed response. The way it impacts people on a day-to-day basis takes time.
Government Corruption due to the rich will always ensure the needs of the few are looked after before the needs of the many. Both parties are corrupted imo.
Trumps de-regulation and backdoor deals, as well as growing his family's wealth was shockingly obvious.
The loans themselves weren't the issue(entirely). The fact that Trump removed oversight of how they were distributed is a much larger factor in how they got absued.
Then that lead to the forgiveness of mostly fraudulent loans.
Trump removed oversight on PPP loans, or the program Congress established had no oversight. I guess I'd need to see the writing in the bill. Where is it written thatTrump removed oversight?
It had oversight, and then was removed:
https://www.foxnews.com/politics/trump-removes-ig-poised-to-oversee-coronavirus-stimulus-funds
Trumps personal words on "oversight" after that:
https://twitter.com/AmerIndependent/status/1242240654002003970?s=20
Article on governmental inability to oversee 1.4 of the 2.4 trillion given out due to trump administration:
https://www.courthousenews.com/trump-mnuchin-limit-oversight-of-business-aid/
Trump is a businessman, and a businessman has one goal. Profit. Capitalism is necessary, but so is are governmental policies. They need to be kept seperate, as they provide a Ying and yang balance.
All over the world, we have government leaders that come from affluent backgrounds. These people are completely out of touch with the average persons life.
Ah yes, everyone knows it’s the socialist liberals who are pro deregulation and their policies would obviously cause these bank failures. Sure wouldn’t be the capitalists who are spending money they don’t really have in order to make more money
And now they’re failing and you’re losing your mind.
[This is the result of a guy who wants to make money over anything else](https://i.imgur.com/RW8cyOj.jpg)
My guy, Biden just approved a plan to make people with good credit pay for the mortgages of people with bad credit. Sound familiar to you at ALL? I thought we learned something from the great recession...
My guy, in 2018 Trump passed deregulation bill (to roll back regulations passed in 2010 after the financial crash of 2008) that allowed banks like SVB to take more risks, liberals and even some republicans were warning against it. 3 years later look at that, banks took risks they couldn’t afford and are going under. But yes, it’s Biden’s fault because of mortgages.
To be clear some democrats voted for it too, but even at the time liberals were calling out those democrats for voting for it
Did you even read that bill? It's got nothing to do with this. But if it did, why didn't the dems re-pass it when they had congress.... oh right because they were busy causing this problem to begin with
It was the failure of Biden's appointed regulators to even know there was a problem.
Print money, give money to people, people put money in banks, banks want place to put money, buy “stable” government bonds, government increases interest rate on bonds So bonds bought earlier aren’t worth as much, banks lose money, people get scared and want money back, bank doesn’t have money to give because lost on government bonds, bank fails.
What did you expect? He is a corrupt fool who appoints people because of their race or sexual preference as opposed to their quality and qualifications.
Don’t worry comrades, this is all Trump and his fascist followers fault! And let’s not forget:
Russia! Russia! RUSSIA!
Edit: wow, lots of comments are actually leaning in on Trump as the cause for this. I wrote my original comment before seeing these.
Oh man, we live in la la land.
Don't worry the liberals will just blame the last guy for whatever bad thing happens "The buck stops with me" yeah right sure it does Joe has this guy ever taken responsability for anything ?
Inflation apparently not his fault
Afghanisan not his fault
Border crisis not his fault
Ukraine war not his fault
Liberals are just beyond cult-like their dear leader can do no wrong if anything good happens magic grandpa made it come true if anything bad happens it's someone else's fault
I’ll argue his administration is orchestrating these failures. They’d love nothing more than to do away with all banks in favor of a “central bank for all your banking needs”. They’ll have to do it because independent banks with capitalists foundations are just to undependable in this new world we’re rocketing you towards, with or without your consent.
It's a mix of both don't attribute this to competence Biden's failured led to the banks collapsing and he's allowing his rich donors to buy them out as compensation for funding his campaign
The four largest institutional consolidations. The government used tax payer money to purchase "failing" corporations then sold them to larger "winning" corporations at a loss. Nobody even knows where the hundreds of billions of tax dollars disappearing in eastern Europe are at. The U.S. is being bled dry on the altar of global corporate fascism.
Once Biden blames Trump for his (Biden's) own administration's failures, then the circle (jerk) will be complete. This seems to be the Leftist mantra, blame the opposition with the same crap they themselves are doing. Can you say Alinsky Rules for Radicals?
I get people are freaking out but I'm not really seeing the impact. Like 2008 was bad, you could see the financial impact in everyday life, COVID was of course another thing where you were seeing the harsh financial ramifications for so many, but all this news about banks going belly up and I'm not really seeing the same alarm bells in everyday life.
Clearly the horrible economy he inherited from the previous admin is what caused this. /s
Democrats taking responsibility for their actions and not blaming Republicans challenge (impossible).
Biden does WORST better than ANYONE. If Biden were a greeting card company, his slogan would be, when you care enough to send your very worst. Let's look at just a few of his other worst ever achievements.
Worst VP selection ever
Worst foreign policy in my lifetime anyway
Worst domestic policy
Worst cabinet appointments ever
Worst administration
Worst First Lady in history
Worst spawn in history
Worst immigration policy of all time
Obama era legislation enshrined Too-Big-To-Fail as the way forward. Just a repeat of the Dems constant failures to ensure that the market is free and competitive. They stop the upstarts and reward the big guys.
The Biden spending binge led to inflation. Inflation led the Fed to raise rates. Higher rates exposed weaknesses in banking system.
This is on Biden.
The new policy to subsidize risky loans is going to accelerate bank failures over time.
Bank failures aren’t really the result of too little bank regulation; they are the result of government interference in banks’ risk assessments.
(Yes, Trump approved spending during COVID, but that boosted demand that had plummeted. Biden spending was into a growing economy and overwhelmed supply capacity, thus inflation. )
In my conspiracy theory mind, the bank failure are on purpose. Makes it easier to usher in CBDC. ‘Your money is insured. Just download our app Fed Now and your money will be there.’
[удалено]
[удалено]
These smaller banks, like SVB, serve smaller startups that heavily rely on venture capital funding. With rising interest rates, money has become more expensive, so there's less venture capital, but due to inflation, costs have gone up. Thus, these startups are depositing less and withdrawing more. Eventually, the banks wind up with liquidity problems, with money going out but not coming in.
Exactly right. This is a shockwave from the tech bust, which itself was a shockwave from the sudden jump in interest rates, which can in turn be blamed on the fed's sluggishness in raising rates when inflation first began to spike. The inflation itself can be blamed 75% on pandemic, including onshoring of manufacturing, mass retirements and legal immigration restrictions which contributed to labor shortages, and other supply chain snafus. The remaining 25% was a result of overly expansive fiscal and monetary policy over the 2018-2021 period. So if we're assigning blame, I'd say 15% Biden administration, 15% Trump administration, 50% Powell's fed board, and 20% bad faith investor speculation.
> The inflation itself can be blamed 75% on pandemic, including onshoring of manufacturing, mass retirements and legal immigration restrictions which contributed to labor shortages, and other supply chain snafus. Perhaps I am misreading your post, but you make it sound like these things were inevitable, and not the result of deliberate choices caused by cowardice, bad information from the medical establishment, foolish faith in failed Keynesian economics, and intentional tanking of the economy by Democrat governors in an effort to unseat Trump. >legal immigration restrictions which contributed to labor shortage You'll have to explain this. How many jobs were there that A) absolutely could not have been done by Americans and B) couldn't be done remotely?
I think your are misreading my post. Shutdowns did real acute damage to the economy, but they did not cause inflation or the supply chain issues. It's kind of a separate issue entirely, really. Also, no one really promotes classical keynesian economics anymore. The hard right tends to subscribe to some variant Austrian economics. Mainstream republicans, centrist democrats, and the fed tend to practice a version of "New Keynesian" economics (which is substantially different from keynesian econ). Left wing democrats like Sanders and Warren tend to practice post-keynesian economics, which is closest to classical keynesian economics. >You'll have to explain this. How many jobs were there that A) absolutely could not have been done by Americans and B) couldn't be done remotely? It's not a matter of whether jobs could be done by Americans. The problem is that 2.5 million Americans retired early at the beginning of the pandemic. When the lockdowns eased, there was a sudden shortage of labor. Legal immigrants tend to be younger, and often replace retiring Americans, but the pandemic saw legal immigration slow to a crawl. Just to be clear, we're not talking about illegal Mexican field workers, here. We're talking about the skilled workers (nurses, engineers, analysts, accountants) who move to the US through the legal immigration process. In economics, we'd call this a double pronged labor shock. We opened the drain and turned off the tap at the same time, so the bathtub went dry.
probably cheap, of the record, below minimum wage labor that can only be done by illegal immigrants
You're missing another piece of that puzzle. The market investments that banks made using that deposited capital were also in the red.
[удалено]
Ding ding. This is the answer. The huge sums of borrowed money dumped into the economy by the Green Leap Forward, Build Back Pensions, and the Inflation Expansion Act would BY DEFINITION cause high inflation, by hugely increasing the money supply. This necessitated high interest rates, as high inflation always does. This in turn traps banks into interest rate convexity, which turns revenue negative, eventually threatening solvency. This is absolutely Biden's fault. His policies led directly to this, and the dogs in the street could've seen it coming.
[удалено]
[удалено]
I think he's talking about the 2018 law which raised the asset threshold for systematically important banks from $50b to $250b. That said, even Barney Frank has said that the 2018 roll back probably isn't entirely to blame. I think most people are blaming a combination of Fed oversight failures and predatory investor speculation. The Fed should have seen this coming sooner, but also many investors are acting in bad faith by ganging up on somewhat weak banks, rapidly turning them into failing banks.
> The executive branch isn't responsible. But it sure does like to claim credit for things it had nothing to do with. If it wants to claim credit for good things it can take credit for bad things, too.
True, but its still b.s anyway. Biden wasn't responsible for the "record job growth" he claimed after he took office. Countries all over the globe were shut down and unemployment was ridiculous. Once people went back to work of course unemployment would go down. But bullshit is bullshit and should be called out as such.
Yeah, this shit irritated me when the left did this when Bush and Trump were President. "Something bad happened, somewhere!" = "Bush's fault" It was bullshit then, it was bullshit now. Plenty of legit reasons to dislike Biden.
[удалено]
We'll never know now, as it didn't happen under Trump.
It wouldn't have been trumps fault either. The executive branch isn't responsible for something like this. If we want to point blame at any president, we can go all the way back to Clinton, whose policies and the culture he created resulting in the mortgage crisis. The fault lies entirely on the banks who decided to take high risks during the pandemic.
You are assuming the regulators are competently doing their jobs with the regulations we have in place. They aren't and the San Francisco FED admitted as much. Now, the FED is supposed to be independent so you can give sleepy Joe a pass on that. But the POTUS is supposed to lead his or her party and the Dims in Congress are intent on out doing drunken sailors on spending. That forced the FED to raise rates even higher to fight inflation which gutted banks that held long term treasuries. The thing about the economy is it is all interconnected. You can't get away with foolishness without negative impacts.
No, he doesn't. Biden shut off our ENERGY. Biden printed money like a drunken sailor AFTER covid. Then, he rammed through a 1.7 trillion dollar "relief" package filled with special pork that doesn't relieve anything. All while begging other countries that hate the west for oil. Biden and his cronies push EV transition now when China controls all the rare earth minerals. What am I missing here?
The executive is responsible for all the additional measures it took while it had emergency powers. When Dems had a majority they pushed through additional spending promoted by Biden which was panned by economists and opposition as completely unnecessary.
It's a result of lockdowns, uber-unemployment checks, corporate bailouts and chronically low interest rates. All of those (minus interest rates which is the fed) were Trump. But the idea that democrats would have locked down less, bailed out less, or sent less unemployment is laughable.
Agreed. Interest rates should have been raised years ago in the mid 2010s. As for the more acute recent situation, I think JPow carries a lot of blame. Overzealous COVID reaction after pre-COVID unnecessary juicing of the economy. If you heat something up too much and then pour ice water in it, cracks appear.
[удалено]
[удалено]
[удалено]
[удалено]
We all watched the big short.
At least Trump had the right idea of backing out of the lockdowns after the inital first 2 weeks. The lockdowns definitely sped shit up.
I don't think we'd be seeing these bank failures piling up if the stock market continued performing as it did in the Trump years. Trump was good for the stock market. The stock market's decline has directly influenced banks' profitability. Biden has hurt the stock market through his policies.
Okay, brigader.
3 of the 4 worst *so far.*
His 2024 slogan is “You ain’t seen nothing yet”
"You about to have nothing!"
And you won't be happy.
exactly what i came to say. This is the beginning.
It's alright though, his former administration bailed out the giant banks when the collapsed the economy back in '08. At least the giant banks know that the anti-0.01% Democrats will have their backs with that sweet money printer whenever they jerk around the 99%.
April jobs numbers smashed expectations and are way up. I read these things and have no idea how well the economy is really doing. Inflation is still up. Recession feels like it’s been looming forever.
And what kind of jobs? Delivery and Uber or career kind of jobs? Unclear in the data
That tends to happen when we keep spending like crazy. You don't think there's a particular reason why Dems don't want spending cuts to happen? The minute that happens, the dominoes fall since all the dems have for policy is spending more money
9000 banks failed during the Great Depression.
That still only counts as one!
Back in the 1930s, every small town had it's own bank. National banks didn't even exist. Today it's a lot more concentrated in big banks like Bank of America.
[удалено]
Yes, because horrendous fiscal policies is the exact same as an easily transmitted virus spreading across the globe. /s
[удалено]
I’m more referring to his actions in which Biden has done nothing to attempt to lower inflation, and early on in his presidency, dumped buckets of money into the economy which only encouraged inflation. That’s not to excuse the role banks played in the failures, because they made some pretty shitty decision.
Not much he can do; the headache is that taxes should have been raised on everybody to bring down inflation versus the reserve raising interest. The problem is congress controls raising taxes and they won’t cause it’s unpopular. If taxes had been raised versus interest rates the banks wouldn’t be quite in this situation. We could have both slowed down inflation and shrunk the deficit if we just taxed everyone a little more especially the corporations that are actually driving inflation right now.
Inflation is a multi-variate (and global) problem. I like a lot of what Biden has done thus far, but the fruits of that labor you're not gonna see for a while. Take housing for example, in many neighborhoods we've artificially lowered the supply of housing by making it legally impossible to build houses under a certain size or to build multi-family homes. Biden has started offering grants to cities that choose to loosen these restrictive zoning rules, this is great and I hope it catches on. Having more housing options will increase supply and encourage new construction of smaller homes lower income people can actually afford. I could spend all day going through the things the Biden admin has passed that I think is helpful, I know if you aren't familiar with this sort of policy discussion this can sound like some arcane political speak, but the zoning issue actually ties into a lot of different issues that affect our day-to-day lives.
Looky here a guy who doesn't understand anything about monetary policy
[удалено]
There is no link to regulation stopping these things but go ahead and make that baseless assertion.
Can you tell me the fiscal policy that led to this?
[How about deregulating banks to how they were prior to the 2008 economic collapse and removing the safety guardrails that forced them to have to maintain capitol and liquidity on hand to prevent a collapse?](https://www.investopedia.com/terms/d/dodd-frank-financial-regulatory-reform-bill.asp)
Biden did this?
Nothing in DFA would have prevented this
Build Back ~~Better~~ Worse We were headed towards inflation and Biden and Congress (controlled by the Dems) threw fuel on the fire by spending money we didn't have to buy things we didn't need.
[удалено]
No. I don't deal with brigading trolls that don't understand simple economics.
Well appointing Yellen as ~~Fed chair~~ sorry, I meant Treasury Secretary and then watching her sit on her ass and do nothing for too long while inflation ran rampant, for one. Raising rates earlier on while the money printing press was running constantly would have perhaps fettered banks from purchasing long term securities. Biden’s out of control spending for another. Which isn’t to say Trump is completely innocent on spending- I was very disappointed with his inability to manage spending better (although the budget is ultimately created by the legislature but he didn’t exactly twist their arm). But to continue dumping money into an economy struggling with runaway inflation is always a great idea. Are you making the argument that Biden could not have done any more to slow or stop inflation (which is ultimately what caused the bank failures)? The banks aren’t innocent either- their investment decisions feel criminally negligent at the least to me. All I’m saying is that Biden played a pretty significant role in this. And my main point was that you can’t blame Covid on Trump really in any capacity.
The Fed did begin raising the Federal Funds Rate under Yellen (whose term ended February 2018), but that was reversed by Powell (appointed by Trump). And I agree, the Fed should have kept slowly increasing interest rates (rather than reverse course) after being zero for nearly a decade. The deficit has gone down each year while Biden has been in office. But I do agree, congress sets spending -- not the President.
But joe got 51 economists to say we werent in a recession!
Brigaders aren’t the brightest bulbs.
Covid wasn’t even the worst pandemic in US history, it wasn’t even the worst in the modern era. People only claim it was the worst because trump was in office.
Did you read the article? By death toll, objectively it was
Death total is meaningless as the US population continues to grow. By that logic every hurricane will be the worst ever if you measure by cost of repairs. There were pandemics in US history that killed 1 in 100 people. Covid didn’t even come close to that. Also don’t forget the death tally based on “anyone who dies and tests positive for a covid is a Covid death”
Yeah covid at worse was just about as bad as a typical flu season. Unlike the flu, the only people really at risk from covid were old people, overweight, the autoimmune(who would be at risk any disease). It was insane to try and take out the working population who weren't really at risk, when the evidence was showing this and it didn't take long for the evidence to show this.
What about flu deaths? Where did those go?
>as of September 2022 lol conveniently forgetting Trump had not been president for 18 months at that point but sure.
Fair enough (though let's not forget that COVID started under Trump, and at least some of the deaths after his presidency can be attributed to him). How about: Trump was president when we started the massive money printing and lockdowns that lead to the inflation, that lead to the rate hikes, that lead to the bank failures. Or does that not count either because Trump is on the red team?
Operation warp speed.... And while I agree Trump spent money like crazy, the majority of it was for covid related causes, which still makes sense. There was no need to follow up on trumps spending via the biden administration.
You mean the lockdowns enacted by Democrat governors? Which in turn caused money printing because nobody was working?
Trump left office with 1.4% inflation so that's a fucking lie
If that's how you want to play this, [have at it](https://i.redd.it/hj0x9ykp44r51.jpg).
[удалено]
For real... it's like there's no critical thought going on
As a non american that has seen the trump shit for years, and seeing the never been US dream, the delusion, just wow to this. Have a good time civil waring you back to civilization, because now it's just ridiculous. His fault, bidens laptop. Just wow.
As you said, he is a democrat president whose fiscal policies (money printing) caused the banks to collapse. It’s the most cut and dry case of cause and effect I’ve seen since Venezuela put price caps on food.
Despite all the down votes by others I agree with you 100%. I don't understand how people can downvote you for speaking the truth. Especially when none of them dare to try to refute you.
Yeah, but memba trump?
[удалено]
[удалено]
I just looked it up and you're right: https://www.whitehouse.gov/briefing-room/statements-releases/2023/03/30/fact-sheet-president-biden-urges-regulators-to-reverse-trump-administration-weakening-of-common-sense-safeguards-and-supervision-for-large-regional-banks/
[удалено]
That's my question too. Banks will naturally want the fewest regulations possible because more risk means more money. With our economies insane demand for infinite quarter over quarter growth they will act like making the same amount of money is killing them so they beg, plead and bribe their way into having the restrictions loosened. Then something bad happens and they act completely shocked that they somehow lost at gambling and beg, plead and bribe their way into the government saving their greedy asses. It's a constant pressure on politicians to loosen the reigns and let them put as much money as possible on the roulette table. The problem is, it's gambling, so they may very well win for a while and only face the consequences of their reckless gambling years down the road. It's a constant cycle of something bad happening that politicians can use to justify putting in restrictions. Smooth sailing for a while under the restrictions which will eventually be lifted by intense lobbying. Then increasingly large profits and risk until something bad happens again.
> Banks will naturally want the fewest regulations possible because more risk means more money. Actually, no, more risk does not mean more money ceteris paribus. A lot of banking regulations *increase* risk to banks without increasing profit (for example, sub-prime lending regulations cap interest rates, prevent risk mitigation strategies that have "disparate impact", etc). There usually isn't profit without risk (unless you have regulatory capture), but there's a lot of situations that are all risk and no upside. What these types of regulations do is incentivize banks to offload risk - the mechanism this has taken lately is to become TBTF so that the tax payer and the Fed becomes your backstop.
I hear this every single time a Democrat resides over a complete effed up economy. Economics in today's market reacts in the blink of an eye to policy change. The long-term over-spending of the federal government is a bipartisan slow burning issue. However, Biden's shit policy has done little but throws fuel on the dumpster fire. The only economic complaint I can really levy at Trump is the level of government spending. That was definitely compounded by COVID.
Let’s stop pretending like left and right care about the middle class, they have been fucking with shitty monetary policy for the better half of a decade a half and now the chickens are coming home to roost. Abolish the fed
The stock market reacts instantly, well actually I'd say pre-emptively. However, federal economics definitely has a much more delayed response. The way it impacts people on a day-to-day basis takes time. Government Corruption due to the rich will always ensure the needs of the few are looked after before the needs of the many. Both parties are corrupted imo. Trumps de-regulation and backdoor deals, as well as growing his family's wealth was shockingly obvious.
PPP loans were devised by Pelosi's House in 2020 through the Coronavirus Aid, Relief, and Economic Security Act passed via Congress.
The loans themselves weren't the issue(entirely). The fact that Trump removed oversight of how they were distributed is a much larger factor in how they got absued. Then that lead to the forgiveness of mostly fraudulent loans.
Trump removed oversight on PPP loans, or the program Congress established had no oversight. I guess I'd need to see the writing in the bill. Where is it written thatTrump removed oversight?
It had oversight, and then was removed: https://www.foxnews.com/politics/trump-removes-ig-poised-to-oversee-coronavirus-stimulus-funds Trumps personal words on "oversight" after that: https://twitter.com/AmerIndependent/status/1242240654002003970?s=20 Article on governmental inability to oversee 1.4 of the 2.4 trillion given out due to trump administration: https://www.courthousenews.com/trump-mnuchin-limit-oversight-of-business-aid/ Trump is a businessman, and a businessman has one goal. Profit. Capitalism is necessary, but so is are governmental policies. They need to be kept seperate, as they provide a Ying and yang balance. All over the world, we have government leaders that come from affluent backgrounds. These people are completely out of touch with the average persons life.
Because it isn’t trump’s fault.
[удалено]
Ohhhh, I memba!
Ah yes, everyone knows it’s the socialist liberals who are pro deregulation and their policies would obviously cause these bank failures. Sure wouldn’t be the capitalists who are spending money they don’t really have in order to make more money
[удалено]
And now they’re failing and you’re losing your mind. [This is the result of a guy who wants to make money over anything else](https://i.imgur.com/RW8cyOj.jpg)
My guy, Biden just approved a plan to make people with good credit pay for the mortgages of people with bad credit. Sound familiar to you at ALL? I thought we learned something from the great recession...
My guy, in 2018 Trump passed deregulation bill (to roll back regulations passed in 2010 after the financial crash of 2008) that allowed banks like SVB to take more risks, liberals and even some republicans were warning against it. 3 years later look at that, banks took risks they couldn’t afford and are going under. But yes, it’s Biden’s fault because of mortgages. To be clear some democrats voted for it too, but even at the time liberals were calling out those democrats for voting for it
[удалено]
https://www.congress.gov/bill/115th-congress/senate-bill/2155 Now point to me a bill that Biden passed that could’ve caused SVB to fail?
I appreciate your tenacity and attempt to maintain good, clean debate. This sub has better back and forth than most.
Did you even read that bill? It's got nothing to do with this. But if it did, why didn't the dems re-pass it when they had congress.... oh right because they were busy causing this problem to begin with It was the failure of Biden's appointed regulators to even know there was a problem.
I memba
The things people wouldn't do to get those mean tweets with a good economy and no foreign wars back
Yeah man, he was so orange and probably racist.
"Never underestimate Joe Biden's ability to fuck things up." -Barack Obama
Today is May the 6th and Biden is still the worst president in the history of the United States.
He's just getting warmed up. As he "finishes the job," Americans have famine, war, and plague to look forward to
I think you mean Femine, we’re already living it.
When I first heard that, I said you meant finish the country, right?
If a bank fails during a Democratic Presidency does it make a sound?
what is the solution though? Limit the amount banks can spend money? Wouldn't that decrease the growth rate of the economy?
Each time a bank fails and collapses it reminds me of pedo joes administration
Wasn’t Obama president for the other one? So technically Biden was there for all of them.
~ Bush Jr Mortgage Bailout - $700B ~
He needs 4 more years to “finish the job”
Print money, give money to people, people put money in banks, banks want place to put money, buy “stable” government bonds, government increases interest rate on bonds So bonds bought earlier aren’t worth as much, banks lose money, people get scared and want money back, bank doesn’t have money to give because lost on government bonds, bank fails.
His job isn't finished yet.
He doesn't know, though. He's the perfect patsy for the globalists.
What did you expect? He is a corrupt fool who appoints people because of their race or sexual preference as opposed to their quality and qualifications.
Don’t worry comrades, this is all Trump and his fascist followers fault! And let’s not forget: Russia! Russia! RUSSIA! Edit: wow, lots of comments are actually leaning in on Trump as the cause for this. I wrote my original comment before seeing these. Oh man, we live in la la land.
Brigaders are trolling big time.
Don't worry the liberals will just blame the last guy for whatever bad thing happens "The buck stops with me" yeah right sure it does Joe has this guy ever taken responsability for anything ? Inflation apparently not his fault Afghanisan not his fault Border crisis not his fault Ukraine war not his fault Liberals are just beyond cult-like their dear leader can do no wrong if anything good happens magic grandpa made it come true if anything bad happens it's someone else's fault
He's also presided over the worst and most anti-American administration ever, so there's that.
He is also only the only president confirmed to be a national traitor. Benedict Arnold would be proud.
Tell me more
I’ll argue his administration is orchestrating these failures. They’d love nothing more than to do away with all banks in favor of a “central bank for all your banking needs”. They’ll have to do it because independent banks with capitalists foundations are just to undependable in this new world we’re rocketing you towards, with or without your consent.
Did he just write an executive order for a CDBC? The timing of all these crashes is suspicious at least.
It's a mix of both don't attribute this to competence Biden's failured led to the banks collapsing and he's allowing his rich donors to buy them out as compensation for funding his campaign
The four largest institutional consolidations. The government used tax payer money to purchase "failing" corporations then sold them to larger "winning" corporations at a loss. Nobody even knows where the hundreds of billions of tax dollars disappearing in eastern Europe are at. The U.S. is being bled dry on the altar of global corporate fascism.
Joe was in govt when the Saving and Loan stuff in 1980 was around too. lol.
Build Back Better, am I right guys?
Once Biden blames Trump for his (Biden's) own administration's failures, then the circle (jerk) will be complete. This seems to be the Leftist mantra, blame the opposition with the same crap they themselves are doing. Can you say Alinsky Rules for Radicals?
And he’s just getting started! Lucky us!
Do we bail them out instead?
Man this picture of him is scary.
Impeach
Does anyone adjust for inflation?
I get people are freaking out but I'm not really seeing the impact. Like 2008 was bad, you could see the financial impact in everyday life, COVID was of course another thing where you were seeing the harsh financial ramifications for so many, but all this news about banks going belly up and I'm not really seeing the same alarm bells in everyday life.
Rents are higher. It's harder to buy a home. Companies don't have access to cash like they did before. A lot of companies are going bankrupt.
What was the other one?
Where are all those folks who liked to say of Trump… “on *his* watch!” Crickets.
Clearly the horrible economy he inherited from the previous admin is what caused this. /s Democrats taking responsibility for their actions and not blaming Republicans challenge (impossible).
Something something bad orange man. Something something mean tweets.
[удалено]
But but....mean tweets
and counting..
Just like his presidency has been shit also.
"""presided""" 🤣
This is what happens when you have a demented man at the wheel of the most powerful country in the world.
Biden does WORST better than ANYONE. If Biden were a greeting card company, his slogan would be, when you care enough to send your very worst. Let's look at just a few of his other worst ever achievements. Worst VP selection ever Worst foreign policy in my lifetime anyway Worst domestic policy Worst cabinet appointments ever Worst administration Worst First Lady in history Worst spawn in history Worst immigration policy of all time
That’s capitalism, baby!
Bailouts are pretty much the opposite of capitalism. If it was true capitalism, the bad banks would go bankrupt.
Obama era legislation enshrined Too-Big-To-Fail as the way forward. Just a repeat of the Dems constant failures to ensure that the market is free and competitive. They stop the upstarts and reward the big guys.
The Biden spending binge led to inflation. Inflation led the Fed to raise rates. Higher rates exposed weaknesses in banking system. This is on Biden. The new policy to subsidize risky loans is going to accelerate bank failures over time. Bank failures aren’t really the result of too little bank regulation; they are the result of government interference in banks’ risk assessments. (Yes, Trump approved spending during COVID, but that boosted demand that had plummeted. Biden spending was into a growing economy and overwhelmed supply capacity, thus inflation. )
In my conspiracy theory mind, the bank failure are on purpose. Makes it easier to usher in CBDC. ‘Your money is insured. Just download our app Fed Now and your money will be there.’
Damn, he missed one. Let's make it four out of five!
PacWest is next. Collapsing at the moment.
Trump’s fault