Biden’s Gift to the Climate Movement – ​​Deepening Economic Recession? – Watts Up With That?

Essays by Eric Worrall

h/t ResourcesGuy – When key economic indicators are outlined in red, green people believe that The key to tackling climate change is economic “development reduction” may be about to get their wish.

Bank of America lending plunges to record levels in final weeks of March

Alex Tanzi
Saturday, April 8, 2023 at 8:06 AM GMT+10·

(Bloomberg) — U.S. banks’ lending activity fell to a record low in the final two weeks of March, suggesting tightening credit conditions following several major bank failures. reputation has the potential to cause damage to the economy.

Most read from ​Bloomberg

Commercial bank lending fell by nearly $105 billion in the two weeks ended March 29, the highest level according to Federal Reserve data since 1973. The drop was more than $45 billion. in the most recent week was mainly due to a decrease in loans from small banks.

The drop in total loans in the second half of March was substantial and included fewer real estate loans, as well as commercial and industrial loans.

Friday’s report also showed that commercial bank deposits fell $64.7 billion in the latest week, marking the 10th consecutive decline, largely reflecting declines at large firms.

The slide in lending comes after the collapse of several companies including Silicon Valley Bank and Signature Bank.

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Jamie Dimon of JPMorgan Chase & Co. The bank’s chief executive said in an annual letter that the setbacks “have caused a lot of anxiety in the market and will clearly cause some tightening in financial conditions as banks and Other lenders are becoming more cautious.”

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Read more: https://finance.yahoo.com/news/us-bank-lending-slumps-most-210839551.html

Why am I talking about an impending recession?

My concern is that what Biden has done so far has made things worse. As inflation rose, Biden adopted the wrong name “Inflation Reduction Act“, fueling the fire of inflation. The Biden Administration Remains Committed To Destroying U.S. Mining Industries, With annoying bureaucratic attacks, license cancellation, excessive regulation, and rental auction suspension, postponement or cancellation. And their full guarantee on bank deposits, while reducing the risk of short-term bank withdrawals, increases moral hazard and the risk of large-scale resource misallocation, by letting badly managed banks fall into the hands of the incompetent. and crime.

At every economic inflection point I can think of, the Biden administration’s approach is short-term and more reactive than strategic. For example, their decision to depleted nearly half of strategic oil reserveswithout doing anything substantial to improve U.S. oil production and energy security, lowering pump prices a little in the short term, but doing nothing to address the underlying problems.

It’s not very late. If the U.S. government pulls back on overspending, stops draining the bond market with massive climate-financed debt, and does everything in its power to relax restrictions on activity. drilling, reducing energy costs and defusing the ticking inflation bomb, confidence could be rebound. The U.S. economy can grow out of the inflation trap without raising interest rates and taxes to the point of killing the economy.

To you, President Biden.