* Hedge fund boss Bill Ackman today warned the 'economy will not function' unless Joe Biden 'guarantees all deposits now' as the crisis hit the Big Four banks
* Among the worst affected regional banks was Western Alliance which saw its stock plunge by 75 percent as the opening bell sounded on Wall Street
* 'The Federal Deposit Insurance Corporation needs to explicitly guarantee all deposits now.
Hours matter,' Ackman said as he called for government backing At least 20 regional banks were hit with trading halts this morning as turmoil sparked by Silicon Valley Bank's collapse gripped Wall Street.
Hedge fund boss Bill Ackman warned the 'economy will not function' unless Joe Biden 'guarantees all deposits now' as the contagion spread to the Big Four trillion-dollar US banks.
Wells Fargo's stock dropped 7.5 percent, Bank of America fell 7.4 percent, Citigroup plunged 5.8 percent and JP Morgan was down 2.7 percent.
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WNU Editor: The stress indicators are flashing red .... Market stress indicators react sharply after U.S. bank failures (Reuters).
So what is my prediction.
My optimistic take is that this crisis is going to cost US taxpayers hundreds of billions if not more. This also guarantees a recession in the coming months. Stock markets will be negatively impacted. And the debt crisis is also gong to get worse. Throw in inflation, high interest rates, and it is obvious that everyone's balance sheet and take-home is going to take a hit.
You do not want to know what my pessimistic take on this crisis is. When I think about it I feel like throwing up.
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