Risk of Default Rises, Need for U.S. Balanced Budget, the Need for Shared Goals

Deposits are lower and there is some risk that there is a pressure on banks with higher interest rates causing some banking pressure. Thus, we might expect more consolidations, reduced bank stocks, and perhaps a few defaults.  There are also some concerns about how to balance the budge, commercial banking activities and the general need to work toward shared goals. You may find the video and information below as helpful. 

If we look at the FRED data on commercial bank deposits and revolving credit there is a little concern. However, when you go to the actual chart you can move to a 5 year view and you will see we are still up in deposits overall. The revolving credit might be an issue because if you have a US default you will likely find credit defaults which causes a chain reaction. How far, we don't actually know. I would be interested in seeing some projections. 

This is the danger of politics. We know we have a debt/spending problem, we know we must compete internationally, so its intuitive we need to restructure and change to put resources where its going to create net positives (That is not against all social programs which if they use the right metrics some are likely net positives.). It does mean going through our different initiatives and programs and ensure we are cutting waste and we are improving their effectiveness around 4-5 main goals for the country. 

My opinion is do as much as you can, extend 6 months (or some months) and work on adjusting our finances for national success. Start with what we know we need to keep and then putting together bipartisan teams to look at each major government expenditure. We encourage mature politicians that want to work these issues out to be collaborators with the party across the isle for mutual growth. No room for staunch ideologies. Everyone must work together. 

Description: Kate Kelly, New York Times reporter, Larry McDonald, The Bear Trap Report founder, and CNBC's Leslie Picker discuss the latest comments from Janet Yellen on the banking crisis, the ongoing debt ceiling debate, and more.

Dr. Janet Yellen discusses risks of breakdown Yellen warns against a US default

These Federal Reserve Commercial Bank Deposits and Revolving Credit. You can gain more from FRED Economic Data Deposits, All Commercial Bank

Commercial Bank Deposits

Commercial Bank Revolve Credit.