The Blubber

Per Reuters

A recent poll by Reuters/Ipsos, interviewing 1,004 people nationwide and conducted online, found that 84% of Americans don't think taxpayers should have to pay for settling banking problems, specifically when caused by management failure.

The majority of participants, both Republicans, and Democrats, voted that taxpayers shouldn't be responsible for bailing out banks, specifically when the reason for their failure was because of bad management.

The poll stretched for two days and found that only 49% of Americans were okay with financial institutions being bailed out by the government. The vote got 40% from Republicans and 55% from Democrats.

When asked about what the participants felt about their own banks, 68% of them said that they had a "fair amount of confidence" in their bank's stability. Most of the respondents, 77%, said they think there should be a return of funds from shareholders and executives who profited from a bank before its failure.

So far, Silicon Valley Bank and Signature Bank depositors will get all their money, even those above the Federal Deposit Insurance Corp's limit. The US regulators promised that even those above the standard limit of $250,000 would be covered.

The US regulators said the deposits would be covered without taxpayers needing to cover the costs.

Going back to the poll, 77% of participants believed that the deposits of individuals should be guaranteed by the government.  

To deal with the crisis, California will likely ask for billions of dollars more in spending to be approved by voters. This money would be used to address the banking crisis.

California has the highest rate of homelessness in the US.

While banks are adjusting their analysis of whether a recession would happen, Treasury Secretary Janet Yellen maintains that the "US financial system is safest and most liquid in the world."

See flow at unusualwhales.com/flow.

Other News:

• California, which has the US’s highest rate of homelessness, will likely ask voters to approve billions of dollars more in spending to help address a crisis that’s spilled onto the streets of every major city in the state
• Yellen: US financial system is safest and most liquid in the world

Resources:

Reuters