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.
US dollar’s time as preeminent currency nearing end
Ordinary Americans are beginning to realize that the dollar is no longer the same. As the grim reality unfolds, years-long faith in the omnipotence of the US dollar gives way to thoughts of its loss of status as the world's preeminent currency in global trade. They are starting to acknowledge that the greenback’s dominance is facing serious challenges.
13:11 2023-06-05 UTC+00
Italy’s public debt makes it one of most highly-indebted countries
The US has firmly settled at the top rank on the list of heavily indebted countries. The federal debt of the top global economy surpassed others by a wide margin. Less advanced and smaller economies have to deal with humongous public debts. Italy’s government debt hit another historic record of €2.79 trillion.
13:02 2023-06-05 UTC+00
EU economy avoids recession
The EU economy successfully avoided recession last winter, a report by the European Commission said. Despite earlier gloomy outlooks, which were prompted by concerns over the impact of the conflict in Ukraine, the diversification of energy supply, and plummeting Russian energy exports due to sanctions, the European Union has managed to weather the storm.
12:35 2023-06-05 UTC+00
EU adopts new crypto market regulations
Lawmakers in the European Parliament approved new regulations on markets in crypto-assets (MiCA). Digital assets have become ingrained in modern life and therefore need to become more managed. "The EU brings crypto-assets, crypto-assets issuers, and crypto-asset service providers under a regulatory framework.
07:27 2023-06-05 UTC+00
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