The Watchdog on Wallstreet Weekly Recap for 3/27/2023
Relationships over Regulation: The reality of our Financial System
Bank NATO, I want to talk about the breakdown of regulators, politicians, and Wall Street and how they continue to fail. There’s a complete and utter failure on all fronts. The reality is that when it comes to regulators, they don’t have many critical thinkers. They rely too much on their models and aren’t able to adjust. It’s a massive bureaucracy. Then there’s Wall Street. They like having cozy relationships with banks. For example, Silicon Valley is kind of an incubator for companies that big Wall Street banks want to take public. Wall Street makes money on those fees. But Silicon Valley banks won’t take kindly to big banks putting a sell order on their stock.
It is unconstitutional to default on our debt
No, no, no. We will not default on our debt if we reach the debt ceiling. You’re being lied to. Politicians are lying to you. Give me a break, please. People may ask, “Are you going to stop having tax money deducted from your paycheck if we hit the debt ceiling and there is a partial shutdown?” Do you think they’ll shut down the IRS? No way, no how. More than enough money is going to come through the doors. We’ll be able to pay off our debts, Social Security, and Medicare. The problem is that certain parts of the government will have to close down. Oh no! How about that? But the ongoing lie that there will be an economic disaster if we don’t raise the debt ceiling right away and on time is patently absurd.
Lucid Motors lays off 1,300 workers!
Well, Lucid Motors hasn’t gone bankrupt yet, but they only have $4.4 billion in cash left, which will only last until the first quarter of 2024. They just laid off 1,300 workers, yet they keep telling everybody that they have all these reservations for their cars. If they have 28,000 reservations, why are they only planning to make 10,000 cars this year when their factory can produce 34,000? I’m lost here. That doesn’t make any sense. Are they expecting people to wait for a couple of years? It seems like this hype-cycle company is going by the wayside.
Joe Manchin deceived by Biden!?!?
Senator Joe Manchin took to the pages of the Wall Street Journal today to publish an op-ed in which he basically whines and complains about the Biden Administration’s lack of transparency regarding the Inflation Reduction Act. We discussed the Inflation Reduction Act and how ridiculous it was. So, you’re not that bright? You are aware that there are left-wing ideologies within the Biden administration, right? Didn’t you think they were going to hijack this thing? The bill is now up to $1.2 trillion in ridiculous spending, but Joe Manchin believed it would cut the debt. Sure thing, buddy. Sure thing. Joe Biden in his aviator glasses has played you, okay.
SEC cracking down on Crypto
The chairman of the United States Securities and Exchange Commission, Gary Gensler, is requesting an additional $2.4 billion to strengthen the agency’s resources and effectively investigate misconduct in the cryptocurrency industry. As an agency that oversees many important tasks, including regulation, they are not as efficient in stopping crimes. They are more like CSI, responding to crimes after the fact. The idea of spending an additional $2 billion to go after crypto may seem excessive.
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