Hello this week on the wall street journal at large, there is another bank falls and dark clouds in circles, divided the administrations of the Financial System is in good shape. The inflation high Interest Rates rising who are you going to believe them or your lying eyes a closer look with my guest at the turmoil in the u. S. Financial system with other escalating and troubling times of financial stress, first have you ever been in a situation from somebody insisting everything is fine but the more that they tell you not to worry the more alarmed you get like an Airline Pilot casually telling passengers a fire in the right engine is complete the under control the man fixing the roof insisting the cascade of rainwater in your bedroom is nothing to worry about, divided the administrations but did a lot of time assuring us that the market Financial System is totally safe and sound. Experience tells us when people have a track record of incompetence tell you not to panic that usually means it is time to panic this week the u. S. Managed to lose another bank, First Republic was used by regulators on monday and most of the business transferred to j. P. Morgan chase at generous gift for meghans largest and politically wellconnected bank First Republic was the first banking collapse in two months with more than 200 billion in assets it represents the Second Largest Bank failure in u. S. History along with Silicon Valley banking Signature Bank which failed three of the four largest banking and history have occurred on joe bidens watch, even as a crisis has escalated leading administration and policymakers keep telling us theres nothing to worry about. The Banking System is safe and sound. The u. S. Making a sound and resilient. Americans can be confident that the deposits are safe and sound. Gerry Financial Markets dont seem to be by the reassurances, stock prices of other regional banks plummeted as fears spread the system is far from safe and sound america has more than 4000 banks, many likely sub regional institutions that play a vital role in servicing local businesses and communities, some of them have reckless practices and dont deserve to be bailed out there are two big problems that the government is responsible for. First the failure to deal with inflation early enough as a catastrophic error that led to sudden and sharp rises in Interest Rates over the last year continuing this week with a quarterpoint hike with the Federal Reserve that left many Smaller Banks holding large losses on their Balance Sheets. The other problem is a flight in customer deposits here the issue is the divided administration regulators cant seem to decide whether to protect all depositors or just those who are guaranteed by insurance limits, uncertainty about the safety of their money these banks have a maximum insured amount by the fcic is causing people to take their money away. In every case a banking failure so far the larger depositors have also been bailed out with the worst of both worlds in a risk that you took my putting in the bank but that guarantees not clear enough to stop the uncertainty completely to customers have been pulling them to move into bigger institutions. Remember after the goble financial crisis, the big banks are getting even larger and smaller bags are crumbling in faith in the Financial System is eroding everything is under control, lets talk about this with my guest cohosted the bigmoney show brian rundgren and forbes contributor, let me start with you brian. Biden in the fight keep telling us everything is fine and safe and sound, doesnt look like it. They protest too much, the banks are not alright lets be honest about that the best thing that the president can do right now in Jerome Powell and Karine Jeanpierre say the banks arent alright, they have problems it doesnt mean you should panic but we have to do some things to fix them there not saying that right now, thats why depositors are talking around thinking when do i put my money out there taking the wrong approach because her not being honest, lets talk about the problems yet management problems, no question about it but your regulatory problems and mary daly has missed the boat repeatedly on these banks, its not fraud its just interestrate risk, that is the real issue here, they are not seen some of the obvious things regulators should see. Dont tell me how much money they have or cuts to regulation you dont need that much sophistication to figure that out. The messaging from the administration of the fed is urging people to get other money into the larger banks, why would you risk heavyduty money in a small bank right now we need the banks are too big to fail. Liquidated with First Republic they arranged the sweetheart wedding between j. P. Morgan and First Republic. Jamie dimon must have the red phone hotline to the white hou house. The problem is the regulators of the banks three years ago would never have allowed that combination but now they enforce it. Gerry richard the mixed messages from the administration are not helping its fine if people want to express confidence in Banking System you know what to say put in triple your money out things are falling apart but at the same time people need to be clear whether their money is safe and i dont think people are getting a message. Thank you for having me i agree with brian i think there is some problem ups with small regional banks that have very limited Balance Sheets that are being impacted from the increase of Interest Rates i set that aside from the entire banking industry. If youre watching this program and you have your paycheck directly deposited into any bank you are probably safe and you deposits are safe whipped of a larger question on not necessarily help but how do we find a way to isolate these banks that have smaller Balance Sheets and anything about the kanka pack west for example, this is a case where they are in some trouble but they made the trouble uniquely worse on the market it was short sold, we have to sell the stock in a result of selling the stock we have folks that are very leery about the vacated self and industry overall is fine. We have to have a conversation about the regional banks and the stock market and the pressure from interestrate increases are having on these banks. Gerry the failures of inflation under control insisting for years and that inflation was a transitory issue, going away in the sudden increase in Interest Rates and better raising Interest Rates that is left many financial issues. Again, some of the institutions manage the risk badly but the fact is when you let inflation run out of control in the new jack up rates ten times in a year, something is going to break, that is the root of the problem. Will be responsible fiscal monetary policy, when you do that might be a bank or real estate might be something else, something is going to break that is not a Sustainable Way to run our economy. Gerry do you have this is having an effect on the way the public use administration joe bidens Approval Ratings are pretty low were seen questions that he announces could run for the president again received many questions about that is this contribute in that maybe this is not the right match for the job right now. We have about two years to the election where voters will have things to make stable, since last year everybody and every prognostic recession is coming, recession is coming look at the recession over there and the indicators are pointing to that we dont necessarily have a recession insight and a quarter million jobs added to the economy thats also happening overall is not as good as we wanted to be but inflation slowly decreasing and we see a bit of a contraction of economic growth, exactly what Jerome Powell and folks at the fed say a soft landing, the reality might be that we might have a soft landing if the indicators hold when there holding. Next new details on the health of the economy and applications of the Interest Rate hike this week and whats going on in congress as the debt ceiling moves large. The American Economy is heading for cliff. Biden Senate Democrats have sat idly by. And hopeful negotiating good thing, please, please mr. 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Salonpas lidocaine flex. A super thin, flexible patch with maximum otc strength lidocaine that contours to the body to relieve pain right where it hurts. And did we mention, it really, really sticks . Salonpas, its good medicine. Over 12 million jobs have been created in joe biden is building an economy that leaves no city, no town, no american behind spirit President Biden touting a Strong Economy in his new campaign ad, its true the labor market showed resiliency getting april 205, 2000 jobs the unemployment dropped to 3. 4 , good news. On the other side the Federal Reserve again raised Interest Rates for the tenth consecutive time still stubborn inflation that we face rates went up another quarter percentage point the unfolding debt ceiling standoff is inching the u. S. Closer to a potential default, joe biden said to me Kevin Mccarthy next tuesday but is refused to negotiate on the spending cuts so is abided economy strong as he claims and leaving the american behind lets ask our panel richard i want to talk but the debt ceiling in particular joe biden cities not going to negotiate you want to clean debt ceiling increase the house passed the measure which would reduce spending and the deficit in exchange for increasing the debt limit, is biden going to insist he wants to negotiate. At the clock to wait to see what happens seems likely my sources on the white house and capitol hill there might be a shortterm deal that will eventually get them to the table to negotiate but its worth pointing out in this moment that this only seems to be a problem for democratic president when the republicans control one chamber of the United States congress, when donald trump was president Kevin Mccarthy voted to raise the debt ceiling so did ted cruz and many other republicans, now the joe biden is in the chair they want to attach raising the debt ceiling to Discretionary Spending cuts, what that means for folks at home they will cut security transmission officers and folks that work at air Traffic Control and they get up at their jobs in their paychecks on the line so they can get the budget cuts, im not saying we should have conversation about fiscal spending. Lets separate the two things. Aggressive both parties had presided over massive increase in the deficit, surely its time for some common sense. My point you separate the raising of her debt ceiling versus Discretionary Spending cuts, when you put those two things together you put the entire United States economy on the plank trade why would you do that in the moment we were trying to get inflation under control and trying to grow this economy, we just passed the bipartisan info structure bill all these things are moving to the right direction and congress is to move in the wrong direction. Gerry the u. S. Is essentially going to run out of special missions to keep under the debt limit by the end of the month essentially preaches the u. S. Going to default . I dont think its going to default but to richards point, the reason that you link these things together because Discretionary Spending cuts never happen if you dont. This plan is so radical, mccarthys plan is so radical hes going to roll back Discretionary Spending to 2022 going back to the dark ages of Discretionary Spending. The fact that there is not a negotiation happening right now close to getting done is crazy to me, this is not a radical starting point for mccarthy. It is something that both parties should be able to agree on for the fact that they dont tells you how radical this president spending plan is, there is a reason why the debt ceiling went up under trump and its an issue here now we had a heck of a lot more spending under biden in the last two years that we did under trump. Gerry isnt the problem Biden Administration sense is a political advantage, everything that we hear the biden people have been told by the posters if we get close to a debt default people are more inclined to bring the republicans, the plain politics for something that should not be political. I agree the plain politics but i do think the politics is being played on one side of pennsylvania avenue there being played on both sides of pennsylvania avenue like brian said under donald trump republicans raise the debt ceiling, under george bush republicans raise the debt ceiling we saw spending a lot of Discretionary Spending under george bush presidency as well as Donald Trumps presidency, why is it now the democrat and the chair republicans dont want to raise the debt limit or they want to attach it to debts and can congressionally spending they were having this conversation when trump created spaceports but now the joe biden is here were trained to rebuild our roads and the pipes at the ground having conversation around how do we cut Discretionary Spending my whole thing if its good for the goose should be good for the gander and thats not whats happening right now. Gerry anyway, joe bidens neverending border crisis with title 42 set to expire in less than a week and thousands of migrants camped out at the southern border. Lawmakers are pointing at joe biden calling for action. Are most come across a border, tears come across your work is your calling. It drives your days and powers your nights. But if your teeth no longer work as hard as you do, aspen dental is here with smile Replacement Solutions that work for your life. Whether its your first step, or a fast fix, you can get in today for all your denture needs, all at an affordable price. Right now, get 20 off dentures and make your smile work for you again. Call or book online today. Asking the right question can greatly impact your future. Are, are you qualified to do this . What . Especially when it comes to your finances. Are you a certified financial planner™ . Im a cfp® professional. Cfp® professionals are committed to acting in your best interest. Thats why its gotta be a cfp®. Texas border cities are an emergency with title 42 except expire next tuesday the border crossings to double 10000 today. Administration announced it is sending 1500 troops to help process the expected surge endeavor at the republicans have criticized the move. At the abided administration is trashing around trying to figure out what to do, 1500 troops without Law Enforcement authority are not much more than a gesture. It tickets ridiculous theater it will not change the outcome. All they can do is change diapers and push paper. The Border Patrol union added to the criticism these idiots open pandoras box and that no idea how to contain a fallout. Its about to hit lets talk about that with my guest colorful language lee union is right basically the problem here is Biden Administration the minute that they came inr not ss about protecting the border and these are the consequent this. There is nothing that they could do about it because innocence and they invited it and you look at the cities where migrants are moving to northern cities, new york and chicago and elsewhere you can see there is no plan, if you go into the subways and out on the street in your heart breaks to see the humanitarian crisis but without a change in policy at the border there is nothing there is no one out of money we can spend in this country to make this right that is one thing the president wont touch his actual policy at the border to fix this. Gerry is p token