Biden's Bank Woes: Escaping Fallout and Contradictions.

The collapse of three US banks in as many months has raised concerns about the health of the US economy, which has just witnessed one of the biggest bubbles of the past 100 years. While the White House maintains that the US financial system is fundamentally sound, the rapid increase in interest rates has taken official borrowing costs from near zero to more than 5% in little more than a year. The Federal Reserve is expected to start cutting rates in July, but the markets are getting ahead of themselves. The longer rates stay high, the tougher life gets for vulnerable banks, and the Fed will eventually cut interest rates aggressively, but by then it will be too late to avoid a hard landing.