Biden Says Stay Calm While Banks Tank Around America

(NationalUSNews.com) — When the Federal government assures Americans that “all is well,” it has the opposite effect on the nation’s faith in its leaders. The disturbing trend of bank failures has President Biden scrambling to calm America’s collective fears that an inevitable financial disaster is looming on the horizon.

The Biden Administration, whether it is to be defined in a set of four or eight years, has been at the helm while several large banks have tanked. Confidence in the system is low and decreasing, affecting Biden’s voter approval as well as individual households and pocketbooks.

Inflation is high in 2023, and everyday grocery prices have skyrocketed. In an effort to get out in front of soaring costs, the Federal government has played with interest rates, bumping them up several times. Credit card fees, therefore, have multiplied and mortgage rates have put the squeeze on homeowners everywhere.

While Biden’s attempts to steady the economy have actually made life harder for the average American, several banks have also been the unintended victims of the rate hikes. Signature Bank, First Republic Bank and Silicon Valley Bank have all gone under, with losses totaling over $531 billion.

Depositors may be unsympathetic towards a bank that cannot handle its business, but unplanned bank closings cast a shadow on the country’s ability to stay financially afloat. The Federal Reserve has made varied attempts to right the ship, but policy inconsistencies have proven detrimental in the long run.

The Federal Deposit Insurance Corporation (FDIC) was created after the Great Depression to return bank customers’ money if the banks failed. However, the FDIC only has a certain amount in its reserve. Closing out 2022, the FDIC reported $128 billion in available funds to repay depositors. Clearly, that total does not touch the current losses, and the FDIC has not revealed how it will ultimately balance the books.

Meanwhile, Biden continues spending and pushing for raising the debt ceiling.

Copyright 2023, NationalUSNews.com