The moment now is also in need of leadership. Does Joe
The Big GuyBiden
...46th president of the U.S. The very model of probity....have the chops to face down multiple global threats and secure our borders? And does his economic team, led by Treasury Secretary Janet Yellen, understand what could be in store for the economy as yet another bank heads for failure?
Sleepy Joe, of course, has been such an obvious disaster, it’s hard for even the mostly coddling White House press corps to ignore his incessant bungling. Yellen, meanwhile, has been given a total pass even though her stewardship has been equally inept. No greater example of Yellen’s cluelessness can be found than her stuttering attempts to adequately deal with the still smoldering banking crisis.
Another big bank, First Republic, is heading for government receivership. As I reported earlier this week on Fox Business, top banking execs with direct knowledge of the matter knew that First Republic was a goner. It was just a matter of time because its business was beyond repair. Despite that, Yellen led a misguided last-ditch effort to save it for no other reason than to save face. She wanted to fool the American people into believing the banking system and even the entire economy is fine, when it’s not.
Consider that for weeks now, Yellen’s message has been one of optimism. Fed rate hikes caused some financial indigestion (aka two midsized bank failures) but the worst was over. The US economy was poised for a soft landing; slower growth to squeeze out inflation but no steep recession.
This rosy scenario was predicated in part on her belief that a significant banking crisis had been averted, and bank lending would soon resume at prior levels. The collapse of Silicon Valley and Signature banks weeks ago were one-offs because Yellen and her team swooped in and threw money at the problem, insuring all deposits — even those above the government limit of $250,000. It didn’t matter that it was a bailout for rich tech-company-types with ties to the Democratic Party. Systemic risk was averted.