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.
Global trade slowing markedly, Fitch says
According to Fitch Ratings, global trade is now slowing down after a rapid post-pandemic recovery in 2021-2022. In addition, the ratings agency notes a winding-up process of globalization.Analysts anticipate global trade growing by 1.9% this year, far below a 5.5% rise recorded in 2022.
12:03 2023-06-09 UTC+00
Bank of America sees mild recession in US
Bank of America (BofA) economists predict a recession in the United States by the end of 2023. BofA CEO Brian Moynihan says the American economy will be hit by a mild downturn in the second half of the year.According to the preliminary estimates of Bank of America’s research team, the United States will remain in a state of mild recession until the first quarter of 2024.
10:42 2023-06-09 UTC+00
Three-polar currency world to become reality?
According to economists, the dominance of the US dollar as the world's reserve currency has been shaken. Currently, there are no big threats to its hegemony but in the near future it could be kicked off the pedestal by two leading currencies – the yuan and the euro.
14:36 2023-06-08 UTC+00
BTC to be extremely volatile
Analysts expect Bitcoin to be highly volatile this year. However, they also do not rule out a steady rise similar to the one that took place in early 2023. At that time, Bitcoin added 60%, recouping half of its losses by the end of 2022.Bitcoin is unlikely to reach all-time highs this year due to inflation, which is declining very slowly.
14:34 2023-06-08 UTC+00
India surpasses France to become fifth-largest stock market
India is slowly but surely turning into a global leader. It has overtaken China as the world’s most populous country and is now strengthening its financial position. The Indian stock market has hit a capitalization of $3.3 trillion, becoming the fifth-largest in the world. The country is rapidly growing in all fields, and the Indian market is perhaps the most promising for foreign businesses.
13:51 2023-06-08 UTC+00
AI to entail irreversible damage to labor market?
According to Business Insider, a lot of analysts voice concerns about the growing impact of artificial intelligence on the global economy. At present, AI has been already firmly incorporated into a variety of sectors. It is likely to occupy the lion’s share of the global market in the foreseeable future.
13:43 2023-06-08 UTC+00