Bank failures are in the news. Unlike the financial crisis of 2008-2009, these banking problems more closely resemble the Savings & Loan failures of the late 1970s. I have attached a link to one of the best commentaries I have read regarding the current bank problems. Brian Wesbury, Chief Economist at First Trust, explains why these primarily regional banks are in a difficult situation and what we can anticipate going forward. Read his commentary here.
Chegg Inc. is an education company that provides learners with assistance in their chosen field of study. The company announced today that their revenues are significantly down due to students moving to Artificial Intelligence options such as ChatGPT. Their stock dropped 49% in one day. Read the article here.
For the first time, it seems, the Federal Reserve Bank is operating at a loss and has negative cash flow. According to the Economic Research Report, published by First Trust, the Fed's historic rate of interest rate hikes has not only hurt some bank's liquidity, but has negatively affected it's own. Read this eye-opening report here.