15.3 C
Tuesday, June 25, 2024

Popular Now

US economy heading for ‘train wreck,’ billionaire warns

Bill Ackman news

Continued interest rate hikes by the Fed could worsen the banking turmoil, according to Bill Ackman.

The US economy is facing disaster following another interest rate increase by the Federal Reserve and the Treasury’s rejection of full deposit insurance, billionaire investor Bill Ackman has warned.

“When combined with the higher cost of debt and deposits due to rising rates, consider what the impact will be on lending rates and our economy,” Ackman wrote on Twitter on Wednesday. “The longer this banking crisis is allowed to continue, the greater the damage to smaller banks and their ability to access low-cost capital,” he added.

The billionaire’s warning follows the US central bank’s decision to raise rates by 25 basis points. On Wednesday, the Fed lifted its benchmark rate to a 4.75%-5% range as it continues to combat inflation.

“Trust and confidence are earned over many years, but can be wiped out in a few days. I fear we are heading for another train wreck. Hopefully, our regulators will get this right,” he said.

Ackman also slammed US Secretary of the Treasury Janet Yellen for walking back plans to support depositors.

Yellen, who previously made assuring comments about protecting regional banks, stated on Wednesday that she had not considered or discussed “blanket insurance” for US banking deposits without the approval of Congress as a way of stemming the threat of further bank runs.

“The longer the uncertainty continues, the more permanent the damage is to the smaller banks, and the more difficult it will be to bring their customers back,” Ackman argued.

Western governments and central banks have sought to prevent a cascade of bank failures after the sudden collapses earlier this month of Silicon Valley Bank and Signature Bank in the US. The turmoil has also hit troubled Swiss banking giant Credit Suisse, which has been acquired by its rival UBS in a government-brokered deal aimed at shoring up public confidence in the Western financial system and averting a global crisis.

Promoted Content

Source:RT News

No login required to comment. Name, email and web site fields are optional. Please keep comments respectful, civil and constructive. Moderation times can vary from a few minutes to a few hours. Comments may also be scanned periodically by Artificial Intelligence to eliminate trolls and spam.


  1. the us dollar is going soon down the drain….Countries are opening special bank accounts for commerce in India, among whom germany the first of european countries.
    Read recently in firstpost.com

  2. Couple of interesting links
    A “Too Big To Fail” Bank In Europe Is Literally On The Brink Of Collapse
    Not to mention Deutsch Bank which could be broke come Tuesday
    Beefed up RBNZ bank failure powers under the incoming Deposit Takers Act to include statutory bail-in and statutory management
    Previous article precedes this next article
    Government bails on bail-in, ditching the opportunity to give the Reserve Bank a tool to shield taxpayers in the event of a bank becoming distressed
    This is happening in America now
    But America has deposit insurance up to $250,000
    Nz does not
    Definitely food for thought

    • Buy gold coins or bars of gold jewelry if you have savings. Don t leave your savings in the bank. you might lose everything.
      If you buy gold and the price goes down, you might lose a few hundreds bucks.
      But if your bank goes bust, you might lose everything.

      Also have some cash home. Remember when Greece was ” bailed out ” from the BCE. People could only get a very little anount of cash from their accounts

  3. Saudi arabia held about 9% of the shares of credit suisse, but i read in Firstpost.com ( india online paper) that they sold threir shares.
    Must have insider knowledge of what is going on

  4. BRICS are gaining in popularity as most of the BRIC Nations have their currencies backed with gold.
    The Rothschild Zionist-owned and controlled private bank known as the ‘Federal Reserve’ has no precious metals backing it’s so called ‘assets’ in false yields whatsoever! It prints banknotes. If any one else did this, we would be charged with forgery, counterfeiting, and wire fraud!
    Plus, they print currency out of thin air, and then charge interests to use their ‘notes’.
    The FDIC of $250K will be diverted to cover Rothschild’s losses, so bank depositers will lose everything that they have in the banks!


Please enter your comment!
Please enter your name here




Daily Life


moderate rain
10.5 ° C
11.7 °
9.9 °
93 %
100 %
12 °
12 °
12 °
12 °
12 °