All Star Political Panel — Bank Failures, Federal Debt Ceiling And What May Happen
- We are on our fourth bank failure. Interest rates are increased again. And inflation is nowhere near 2%. With all the take over of the banks in 2008, how are they collapsing? They could only loan up to 40% of their assets. The banks that are failing are in the tech industry. Did they get too far into the crypto currency? And into the T‑bills that are worth nothing. The banks didn’t manage their risk management. Regulators weren’t overseeing the banks. In 2010 the banks were supposed to have a stress test. The money that we generated in the past couple of years went into the banks. By raising the interest rate Jerome Powell is just expanding the collapse of the t‑bills. The red state cities are doing much better than the blue state cities.
- WE have had federal shutdowns periodically during our history. The reason for a federal shutdown is because congress doesn’t do the approcations. When the debt ceiling isn’t extending then they can’t borrow when they run out of money. When they reach the debt ceiling and no longer have the money to write checks then they have to decide what to pay. The Treasury department doesn’t have the authority to change what is paid and not paid. They are using the June 1 date, right now we are more flushed with cash because the income tax should be more than enough.
- McCarthy got the house to pass a proposal to raise the debt ceiling if certain conditions were met. Given to Biden more than 10 days ago. The only thing on Biden’s schedule was 3 photo ops the entire week. The hope is that McCarthy will get the 80K+ IRS agents and the COVID funds rescinded.
