President Biden on the NON Banking Crisis - Biden Era

White House: Statement by President on the failure of two banks in the US and the reaction by the Government, " Remarks by President Biden on Maintaining a Resilient Banking System and Protecting our Historic Economic Recovery....THE PRESIDENT:  Good morning, everyone.  Before I leave for California, I want to briefly speak about what’s happening to Silicon Valley Bank and Signature Bank. 

 

Today, thanks to the quick action of my administration over the past few days, Americans can have confidence that the banking system is safe.  Your deposits will be there when you need them. 

 

Small businesses across the country that had deposit accounts at these banks can breathe easier knowing they’ll be able to pay their workers and pay their bills.  And their hardworking employees can breathe easier as well. 

 

Last week, when we learned of the problems of the banks and the impact they could have on jobs, some small businesses, and the banking system overall, I instructed my team to act quickly to protect these interests.  They have done that.  They have done that.

 

On Friday, the government regulator in charge, the FDIC, took control of Silicon Valley Bank’s assets.  And over the weekend, it took control of Signature Bank’s assets. 

 

Treasury Secretary Yellen and a team of banking regulators have taken action — immediate action.  And here are the highlights:

 

First, all customers who had deposits in these banks can rest assured — I want to — rest assured they’ll be protected and they’ll have access to their money as of today.  That includes small businesses across the country that banked there and need to make payroll, pay their bills, and stay open for business. 

 

No losses will be — and I want — this is an important point — no losses will be borne by the taxpayers.  Let me repeat that: No losses will be borne by the taxpayers.  Instead, the money will come from the fees that banks pay into the Deposit Insurance Fund. 

 

Because of the actions of that — because of the actions that our regulators have already taken, every American should feel confident that their deposits will be there if and when they need them. 

 

Second, the management of these banks will be fired.  If the bank is taken over by FDIC, the people running the bank should not work there anymore. 

 

Third, investors in the banks will not be protected.  They knowingly took a risk and when the risk didn’t pay off, investors lose their money.  That’s how capitalism works. 

 

And fourth, there are important questions of how these banks got into these circumstances in the first place.  We must get the full accounting of what happened and why those responsible can be held accountable.  In my administration, no one, in my view — no one is above the law. 

 

And finally, we must reduce the risks of this happening again.  During the Obama-Biden administration, we put in place tough requirements on banks like Silicon Valley Bank and Signature Bank, including the Dodd-Frank Law, to make sure the crisis we saw in 2008 would not happen again. 

 

Unfortunately, the last administration rolled back some of these requirements.  I’m going to ask Congress and the banking regulators to strengthen the rules for banks to make it less likely that this kind of bank failure will happen again and to protect American jobs and small businesses. 

 

Look, the bottom line is this: Americans can rest assured that our banking system is safe.  Your deposits are safe. 

 

Let me also assure you: We will not stop at this.  We’ll do whatever is needed on top of all this.  "

Lets Get Real:

This is not the 2007/08 near banking collapse, rumours should be seen as rumours, the US and the West has regulated the banks and the markets since then.   President Biden is running for re-election, thus he will make sure that people can get to the cash in their banks.   Thus individual and business accounts are safe, this is not and I repeat it, there is no danger to YOUR MONEY. Wall Street is just reacting to the news, and share holders in banks are getting worried, there is no need to worry.  POTUS would lose re-election if he messed this up, so he wont, the Democrats on the Hill will back POTUS, they have no choice, he is their candidate in 2024. 

Two Banks Collapse in the US and the After shocks - Biden Era

BBC News - Live Blog: Reports in its 5.46pm post the following, " US markets relatively calm....Financial markets in the US have been jittery for months and the collapse of SVB led to big falls on the main stock indexes last week.  But in the US the main indexes remain relatively calm at the moment...That could be a sign that many investors expect this crisis to remain contained.  "

Lets Get Real:

This is not the near banking collapse of 2007/08, the US and Western economies reformed the banking system after the near cliff fall. Already POTUS has stated that people will get their money, and this is important as SVB dealt with start up companies in silicon valley.  There will be rumours of other banks, that is natural, but they are rumours.  The people should not worry, their personal money is safe and also the accounts of different companies.    This shows that you need tough regulation when it comes to the banks and the markets, no one is to big to fail.  Already the President has stated that those that run SVB will be out of job and the government will run them.   There will be no economic collapse, its just the markets doing what they do, buy and sell shares in banks.  Thus do not trust the internet, any one can make up a rumour, always go with the facts. 

US Unemployment and the November Election - Update 1 - 2020 Election

Sky News: Reports " The US recorded 5.2 million unemployment claims last week, taking the total over the past month to more than 20 million.  "

Lets Get Real:

It is up to the Democrats to LOSE the November Election, IF Trump was a great thinker he would think of his predecessor President Hoover, who lost re-election in 1932 due to his failure to deal with the Great Depression, at least the Trump Administration and the US Congress is trying to put some money in to the US economy to help small US business companies, the problem is that the money has run out, and Congress may need to add another 250 billion to the economy.   Also Trump wants to get the US out of the forthcoming recession/depression before it starts, he wants business to open around the US.   The Democrats have to be careful, they can not be seen as wanting to see people on welfare, and rooting for COVID - 19.  One only hopes that VP Biden is up to taking on Trump, the President is a political street fighters from NEW YORK.   The Democrats will not find it easy to remove him from the Oval Office. 

Conservatives are happy that Brexit Party is standing down Candidates - GE2 - General Election 2019

Sky News: Reports " Boris Johnson welcomes Nigel Farage's decision not to stand in seats won by Tories in 2017  "

Lets Get Real:

The Conservatives MPs standing will not have to worry about the Brexit Party, these candidates have to make it clear to the voters if they vote for the Remain Parties and that includes the Labour Party they will get a Marxist in No 10 Downing Street.  This would lead to a Labour Government spending the UK in to bankruptcy, it would make the 2007/08 look like happy hour, the rich investors in the UK would flee, tax revenue would go down, and the Labour Party would have to tax the Middle Class and working class to pay for their promises.   This is the most important election since 1979, does the UK want to return to the bad years of the 1970s. 

Ed Miliband was the reason for the DEFEAT - Election 2015

Mail on Sunday: Reports " Labour big beasts savage Miliband: Senior figures line up to blame Red Ed for the party's shattering election defeat  "

Lets Get Real:

This blog does not believe in hitting someone when they are down, Ed Miliband has resigned as Labour Leader, his agenda was NOT the agenda of the UK voter, the Miliband Camp thought that the UK voter had gone left after the financial crash of 2008,  it might have done for a short time but with the economic recovery it went back to its usual position of centre right, and the thought of business bashing, welfare Labour Government was to much for the UK voter, thus the election of a majority Conservative Government for the first time since 1992.   It should have been a warning to this blog and to Labour that when the British people are nice to their political leaders ITS OVER, the voter in 1997 was nice to Sir John Major, a decent man who lost big to Tony Blair.    Thus Labour needs a long debate about its future, it needs to go back to the Blair agenda. 

The Political Reality of the SOTU - 2nd Term Blues

Telegraph:  Reports on the outcome of the State of the Union speech, " Although Mr Obama knows his plan has almost no chance of becoming reality, he hopes that the Republicans' opposition will at least put them in the politically uncomfortable position of being aligned with America's millionaires against working families. "

Lets Get Real:

For once the Oval Office is making a big mistake, its allowed its ideology to over take facts, the US economy is coming back, thus expect the unemployment rate to go up, as before millions had stopped searching for work, thus with the economy returning there will be people want to get rich or least pay for the week with a job.   If by 2016 the US economy has come back to pre 2008 levels this populist attack on the rich will look old as will President Obama with his white hair.   That is the problem when your run your White House like its the campaign, you govern in prose as a Democrat once said.  If the economy does come back the middle class will not support tax hikes as they know that the rich wont pay them and the burden will fall on them, thus bad strategic move by the Oval Office. 

Obama NO to House Plan - 2nd Term Blues

BBC News: Reports the following from the White House, " ..has rejected a proposal from House of Representatives Republicans to extend the debt limit and reopen the federal government. 

".

Lets Get Real: 

The Republicans in the House want those elected to run the US Government to come under ObamaCare, not get of jail clauses, what an affront to democracy, those that have passed laws should have to live under them, it shows how out of control the Democrats are, they want special favours for the US political elite, while the Main street gets shafted AGAIN, just like when the Banks stole all the money in 2008.    This blog was opposed to Western Governments coming to the rescue of the banks, has any one gone to jail folks, like hell.   The Republicans should wait in till 16th of October, around Midnight of the 17th and pass their bill, if the Democrats want to default, so let it be, it will be THE Obama default, does have a ring to it folks.   A half way house would be the Senate Bill, opens the Government up and rises the debt ceiling, but all that does is get you through the holiday season, then back to close down and the debt ceiling, what this blog would give for another Reagan at this moment folks, those glory days of the 80s folks. 

Obama's DIVE in the POLLS - 2nd Term Blues

CNN - Politics: Reports the following on President Obama's job approval polls, " The president's approval rating stands at 45%, according to a CNN average of four national polls conducted over the past week and a half. And a CNN Poll of Polls compiled and released Thursday also indicates that Obama's disapproval rating at 49%. ".

Lets Get Real:

Folks sooner or later, every US 2nd term President finds that he losses support on the Hill, either through scandal OR just the political cycle, in many respects a 2nd term President is a lame duck the moment he wins, the less power a Oval has is directed by his poll numbers, as noted my morning tweet, a CBS/NYT poll had POTUS on a 43% Approval rating, the US economy has not returned to its 2008 level, there are millions of Americans who have given up looking for a job, thus they are not counted in those seeking a job, thus the unemployment rate is low, not due to people getting hired but because people have fallen in to thinking what is the point, also with ObamaCare if you hire a person for under 30 hours do not have to give them healthcare, thus many working class and graduates find themselves doing part time jobs or jobs that do not require a degree.   On the international stage Obama has had to deal with the Snowden scandal and that disaster that is the US policy over Syria, in many respects 2nd term Presidents have more freedom on the World Stage than at home, Obama has failed to get that fact, he makes demands of Congress as if he is back in early 2009, well folks the political train has moved, there are the 2014 Mid Terms coming up, the Democrats will not get the House back, but they have to fight to keep the Senate, and then we have 2016, every 2nd term President finds at the end if he ran naked around the White House the press would not be interested, there is Iowa in 2016 then comes NH, then the Primary debates and then we have the general.   That is the thing about democracy folks, it moves on, new leaders and issues, thank goodness for democracy folks. 

When YOU Appease - Syrian Crisis END

BBC News: Reports on a French plan for a UN Resolution that would place WMD of Syria under international control backed up by the threat of force. 

Lets Get Real:

Thus folks as in the 1930s we see the West following a policy of appeasement when it comes to Syria, the Oval jumped on the Russian plan for the WMD of Syria to be taken out of the control of Assad, of course its rubbish, the Assad Regime knows that if it losses the Syrian Civil War it will be hung from the nearest lamp post, thus it needs WMD as its final defence, as stated in my tweet last night, the winners of this game are Syria, Russian and Iran.   As noted last night on the 24 news channels the Obama Oval will have to deal with Assad, you have a Civil War in Syria, what will Russia and Syria demand in return, that the West stops funding the rebels, that Russia is allowed to place troops in Syria to protect the chemical weapons, you get the idea folks.   The Oval will be tied to Assad and Russia, they can cause a crisis for Obama at any time, thus THE Obama Oval will be at the political mercy of Russia and Syria.   In less something major happens, and it can with Syria, this crisis is over for now, the West has lost and it will pay a price, that price is THAT Iran goes for the bomb, when that happens folks Syria will look a tea party. 

Economic Collapse Labour's Fault - Blair

Telegraph: Reports that former Labour PM Tony Blair has stated in an interview that the Labour Party has some responsibility for the present economic woes faced by the UK.

Lets Get Real:

This will not go down well with the present Labour Leader Ed Miliband, as at the time he worked for the then Chancellor, Gordon Brown. The Brown Camp will see this another attack on their man, the endless feud between the two. While the Conservatives and the Liberal Democrats will love the comment, at least to be fair to Mr Blair he put his hand up to mistakes, this blog is still waiting to hear the Shadow Chancellor Ed Balls state that he has any flaws to explain for the period. The Labour Party to this day has not said SORRY for its failures under Blair and Brown, they will only win in 2015 when they accept that they failed with the economy, thus the present economic recession faced by the UK, the Labour Party spent when there was no more money in the bank, but this is not new, when the waters get tough the Labour Party are nowhere to be found, thus the National Government of the 1930s.

Blair and the NHS

Telegraph: Reports that former Labour PM Tony Blair is defending the use by the last Labour Government of private finance initiative in the building of hospitals in the NHS, as the article notes the problem is that " The total value of the NHS buildings built by Labour under the scheme is £11.4bn.....But the bill,...will come to more than £70bn on current projections ".

Lets Get Real:

Thus New Labour took the economy over a cliff with its spending, it did not regulate the banks as it should have, the mess of Iraq and Afghanistan cost the lives of many hundreds of UK Soldiers and other personnel, NOW it seems private business will get 60 billion out of the PFI deal. As the articles notes many NHS hospitals are heading for the wall, the New Labour experiment was a bloody disaster, with the exception of Northern Ireland can any one think of a long term policy that has worked. Lets not forget that the UK could lose Scotland due to the mess of the devolution policy followed by New Labour, thus in many respects Tony Blair and Gordon Brown were the worse PM's in UK history.

Bad Day on the Markets - Eurozone Crisis

Telegraph Live - Euro: Reports that US and EU Stock Markets fell today, as Spain officially asked for a a bailout and the EU Summit on Greece this week will start without the the new Greek PM Antonis Samaras and the new Greek Finance Minister Vassilis Rapanos who fell ill and has resigned.

Lets Get Real:

This is train wreak is heading in one direction folks, that is a major crash, the EU can only work with one government and one tax system, anything else is just changing the deck chairs on the Titanic, the Germans want to control the Budgets of the EU if they are going to fund this mess, the rest of the EU has small thing called democracy, the voters in these countries are not going to give up democracy as to please Berlin. The US is to much in debt to help, thus do not expect much help from the Obama Oval. The new Italian PM said the the EU had a week to save the Euro, well that week as gone, not master plan yet folks. The EU leaders have to get over the fact that the Euro was a bad idea, or they face taking the EU down with the Euro. Nothing last forever folks, NOTHING.

UK Banks Downgraded - Euro Crisis

Telegraph: Reports that the Credit Agency Moody's has downgraded major UK Banks, the articles notes the following on the Moody's action, " The lower the rating, the higher the interest rates they pay and the more collateral they must offer. ".

Lets Get Real:

The Banks are already not lending to small business even if that business is making money, this downgraded will hit the customer, any costs that the banks see if their borrowing will be paid by the customers. The Banks do have an argument, the 2008 near death of the banking system was due to bad loans, thus the Banks don't want to be in the position that they are charged with throwing money at bad risks. The Euro crisis and the debt hold by EU Banks means that UK Banks are at risk due to the fact that in this Global economic system all the banks are linked. In other words folks at its most basic and harsh, if the EU banking system is taken down by Spain and Italy then the UK is in the toilet and is going to get flushed. If President Obama had not waisted US tax payers money with his domestic record he could have saved the EU, but the Oval spent like a gambling addict, thus is broke, who is going to save the EU folks, in fact who is going to save the Global economic system.

Spanish Bailout, Not IF but WHEN - Eurozone Crisis

Telegraph: Reports on the growing concern about Spain after the 2nd Greek election, the article notes the following, " Fears were also mounting about the health of the Spanish economy. A full-scale bail-out now appears increasingly likely. "

Lets Get Real:

A few hours after the 2nd Greek Election and the successful campaign of New Democracy we see Spanish Bonds remain at the 7% mark. The Markets took a dim view of the 100 billion euro bailout of the Spanish banks as this just added to the debt, also the bonds markets do not want to hold Spanish bonds if they are the last to get paid at the end of the day. Thus the Kingdom of Spain will need a Sovereign bailout, there will have to be tough strings, the local regional governments will have to be told that for a time they are no longer in charge of their budgets. This will go down like a lead balloon, but the EU has to be firm, as with Greece the EU will have to send in regulators to run the Spanish economy, the Spanish Budget will have to be approved by the EU and Germany. That is the only way that Germany will bailout Spain, also the German Chancellor has made it clear, the Greeks have to follow the austerity deal, tense days ahead folks.

France and Italy = Bailout ?

Telegraph: Reports that the former Labour PM Gordon Brown has stated that Italy and France might need a bailout.

Lets Get Real:

This blog does not have a lot of time for Gordon Brown, that goes for the Labour Party and the UK, but and there is always a BUT, when it comes to his finical outlook one has to say even if it is not popular he did one great service to the UK, he placed a block on Tony Blair going in to the Euro. Also his management of the financial crisis in 2008 was excellent, that was Gordon Brown at his best, that didn’t happen much but it did happen. This warning by Mr Brown should be taken seriously, President Hollande has made political promises that do not match the reality of the French economy, he has reversed the pension reform of the last conservative government and is promising to spend on the public sector, thus one can see a future bailout, if Greece goes then Italy could get hit due to its banks holding Greek debt. It is a pity that Brown does not play well with others, there could have been a role for him in this crisis .

Spanish Bonds = 7%

Guardian Live - Euro: Reports in its 9.53am post that Spanish Bonds have crossed the 7% Mark.

Lets Get Real:

If Spanish Bonds stay at 7% folks then the Spanish Government will have to ask for a major bailout, the 7% mark is seen as the cliff by the markets, it would cost to much for Spain to borrow. This was the fate of the other PIIGS, they were forced to accept a bailout, the new Conservative Government in Spain is lucky, it has just gotten elected, thus has a few years before the next election. Interesting day ahead folks.

Spanish Bonds - Eurozone Crisis

Telegraph Live - Euro: Reports in its 8.15am post that Spanish Bonds have risen to 6.9%.

Lets Get Real:

One can assume that either the cost for the Spanish Government to borrow on the Market will past 7% or the market will revise down the cost of Spanish Bonds. If Spain has to pay 7% on its bonds then it will have to go back to the EU/IMF/ECB and ask for a major bailout, for the debts of the Spanish Government and for the local governments in Spain. If this does happen then Italy will be next folks, as stated Italy is to big to fail, thus the UK might have to borrow money to Italy through the IMF and the EU. It is a pity that it is illegal to do political polls in Greece two weeks before an election, the entire world will be watching Athens on Sunday. The EU and the Markets are waiting to see how the Greeks vote, in our out of the Euro, an election with no clear winner would be a disaster folks.

Spanish Crisis - Eurozone Crisis

BBC News: Reports on more bad news for the Spanish Government, the cost of Spanish bonds has risen again, it is now 6.854% a record, while the Credit Agency Moody's has downgraded the Spanish credit rating to just above junk status.

Lets Get Real:

It seems the 100 billion euro bailout of Spanish Banks has not worked folks, it looks like Spain will have to go back to the EU and ask for the Spanish State to be bailed out. Any Government bailout would have to come with tight strings, the German tax payer has reached their limit with Greece. The question how will this affect Italy, the Italian State has a 2 trillion debt problem. Even the EU would have problems in covering that, there would be no money left in the bank. If Italy is about to ask for a bailout then the UK will have to give money, this would not be popular, but the lack of a united front by the EU could lead to the destruction of the Euro and of the EU. There are crisis days ahead folks, Spain, Italy and then Greece, Athens is the cliff folks, lets see how the Greek voters vote.

The Political Horrors of Greece - Euro Crisis

Guardian: Reports the following from Greece, " the far-right Golden Dawn has ratcheted up the rhetoric by threatening to remove immigrants and their children from hospitals and kindergartens. ".

Lets Get Real:

The Greek people are saner and better that to support these extreme Parties on the right and left, yes the mainstream Political Parties have let the Greek people down, but does Greece want to see innocent children thrown out on the street from hospitals and schools, the Greeks suffered in World War Two under German occupation, do they want to gain a image that is close to Nazi Germany. At least if Greece is still in the Euro it can do a deal later, for now it has to take the hard choice and vote for the mainstream Parties, that is the only way for Greece to face itself with honour in the mirror, the mirror can show honour or not, it is the choice of the the Greek people what face they show to the world.

Capital Controls for Greece - Euro Crisis

Daily Mail: Reports that the EU is considering plans for capital controls on Greeks taking money out of Greece also freezing the right of Greeks to travel within the EU.

Lets Get Real:

This is the nightmare result for the EU folks, the left wing anti austerity Parties form the next Greek Government and demand that Greece be treated the same as Spain, in other words never ending bailouts without any strings. The election on Sunday in Greece will decide the fate of Greece in the Euro and the fate of the Euro itself. One can assume that the Greek voters will not be impressed by the fact that the Spanish have gotten a 100 billion euros without any strings, they might think its safe to vote for the left wing Parties base on the idea that France and Germany are bluffing. The Greeks have to understand this is not a bluff, if the Greeks don't keep to the agreed austerity deal then they are out of the Euro, that simple and brutal. The Greeks will be on their own, the EU has to worry about Spain needing a State bailout, on top of that Italy with its 2 trillion debt just might sink the euro. Thus if your in Greece please understand you have only one choice, not great, bad in many respects, Greece has to support the austerity parties or face the results. It can be cold out there, no EU or Euro cover, time for Athens to take the horrible medicine, there is no other choice.