Ken Griffin: US capitalism is breaking down
Some analysts suppose that some sectors of the Russian economy can be a vivid example of capitalism. Ken Griffin, the founder of hedge fund Citadel, cleared up the situation with the modern economic reality. Notably, the US billionaire is extremely worried about the ongoing collapse of capitalism in the United States.
The bankruptcy of Silicon Valley Bank caused concerns about the rosy future of US capitalism. The decision of the US financial authorities to give back money to affected depositors caused a lot of rumors. Ken Griffin, the founder of hedge fund Citadel, was the first one to call the situation alarming. He supposes that “American capitalism is breaking down before our eyes”. “There’s been a loss of financial discipline with the government bailing out depositors in full,” Griffin is sure. He thinks that “the US government should not have intervened to protect all SVB depositors.” “It would have been a great lesson in moral hazard,” he said. “Losses to depositors would have been immaterial, and it would have driven home the point that risk management is essential,” the billionaire added.
In other words, the US economic system suggests support to both banks and depositors. However, according to the market rules, everyone should have learnt a lesson from the situation.
Congress approves debt ceiling bill
Fears about a default in the US have finally abated. After a prolonged standoff, the Senate passed bipartisan legislation that lifts the government's $31.4 trillion debt ceiling. However, the parties reached an agreement just a few days ahead of the X-date.It was extremely hard for congressmen to make concessions.
15:51 2023-06-02 UTC+00
Musk and Bezos have more money than US Treasury
According to The Hill, the fortune of the two wealthiest billionaires, Elon Musk and Jeff Bezos, has exceeded the amount of money that the Treasury currently has.To avoid a default, which an unsettled debt ceiling issue could have caused, the US Treasury Department has allocated $49.47 billion.
14:57 2023-06-02 UTC+00
Turkish lira slumps following election results
The already suffering Turkish economy experienced even more pressure amid the presidential election that took place in late May. Persistent political uncertainty sent the local currency and stock indices tumbling once again. Unfortunately, the Turkish lira has already seen many such falls.
14:37 2023-06-02 UTC+00
Germany on verge of economic crisis
Germany has been deemed the driving force of the European economy for many years. However, analysts see signs of slowing down. It makes them extremely worried about the economic prospects of the fourth-largest economy.Germany has always helped all eurozone countries cope with difficulties. However, now its economy is on the verge of crisis.
14:26 2023-06-02 UTC+00
National security restrictions likely to harm Chinese economy
The Chinese economy is likely to lag behind the US due to Beijing’s focus on national security, Minxin Pei, professor at Claremont McKenna College noted.Pei stated that while both the US and China regard national security as important and are ready to make economic sacrifices to uphold it, the United States is expected to come out on top in the competition with its rival.
13:23 2023-06-02 UTC+00
IMF sees US inflation remaining above Fed's 2%
IMF chief Kristalina Georgieva sees US inflation above the Federal Reserve’s 2% target in 2023 and 2024.In April 2023, the head of the IMF predicted that the United States would face more problems due to growing global economic vulnerability.
09:40 2023-06-02 UTC+00