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Daily Skimm: State of the Economy, Eric Garcetti, and Miami's Last Call

Credit Suisse shares nosedived on March 15, 2023, after its main shareholder said it would not provide more funding.
March 16, 2023

Are We, Aren't We?

The Story

If you’re worried about the economy and getting ‘08 flashbacks, you’re not alone.

I can’t even escape it on my FYP.

There might be more where that came from. It's been days since SVB collapsed, rattling the US financial system. But just when things appeared to be under control, a new shakeup entered the chat. Yesterday, Credit Suisse — Switzerland's second-largest bank — saw its shares drop a record 24%, raising concerns that it could default. The news sent the global banking system scrambling and reignited fears of a looming recession. Now, amid market turmoil, here's a closer look at:

The banking crisis...Yesterday, Credit Suisse said it would borrow up to nearly $54 billion from the Swiss National Bank in order to boost its liquidity. It comes after the bank’s top shareholder — the Saudi National Bank — said it wouldn’t increase its stake in the bank due to regulations. It's got the Treasury Dept keeping a close eye on how the US could be impacted. Meanwhile, SVB's still looking for a buyer, and filing for bankruptcy is also an there’s that.

Recession…There’s no straightforward answer to ‘are we in a recession?’ Inflation is high, but the job market is still strong. It’s got many experts pointing to a ‘soft landing’ instead. One survey found that 60% of economists still predict the US has more than a 50% chance of entering a recession in the next 12 months. In the meantime, here's how you can prepare for one.

Inflation…All eyes are on the Federal Reserve's meeting next week. They're expected to raise interest rates by another half percentage point — their ninth interest rate increase. However, some experts think officials will take a safer approach and might not even raise rates at all. Instead, there could be a focus on increasing consumer confidence.


The economy seems to be all over the place, and everyone’s just trying to put the pieces together. As regulators work to contain the financial system, many can't help but ask, 'what's next?'

And Also...This

Who’s got a new job title…

Eric Garcetti. Yesterday, the Senate voted 52 to 42 to confirm Garcetti to be the US ambassador to India. In 2021, President Biden nominated the former Los Angeles mayor to the role. But Garcetti's confirmation process faced delays amid allegations he mishandled workplace misconduct and sexual harassment allegations. A Senate report, citing whistleblowers, stated that an aide for Garcetti sexually harassed more than one person and had made racist comments toward others. It also found that Garcetti was either aware of the allegations and didn’t act, or should’ve been made aware. Garcetti denied wrongdoing and never lost Biden's support. Now, after much convincing and years of delay, Garcetti's set to serve as an envoy to the world's most populous democracy.

What's not too cool for school…

Texas. Yesterday, the state said it’s taking over the Houston Independent School District — the eighth-largest in the country. Four years ago, Texas made a move to try to take control of the district, citing poor academic performance across some schools, infighting at board meetings, and violations of school laws. Now, even though the district's seen test scores improve, the state's officially stepping in and replacing the district’s superintendent and board members. The change will give the state greater control over the district's budget, school closures, and curriculum. Texas Gov. Greg Abbott (R) said this is all to provide the district's nearly 200,000 students with the "best quality education." But opponents say the move's a power grab and that takeovers rarely lead to improvements.

What's being told to hang up a 'for sale' sign…

TikTok. Yesterday, the social media app said the Biden admin demanded that Chinese company ByteDance sell the app. TikTok has more than 100 million users in the US. For years, the US gov has cited national security concerns over the company's access to users' data. Now, TikTok could face a possible ban, if it doesn't change ownership. A TikTok spokesperson said a sale wouldn't address data concerns and that the company was considering its options.

Who's got an Empire State of mind…

Aaron Rodgers.

What’s got labs saying ‘sacré bleu’...

French bulldogs.

While you don’t have to go home…

You can’t stay at South Beach clubs.

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