Start Of Financial Crisis? Former FDIC Chief: Banks Are Still ‘Vulnerable’ | Thomas Hoenig
Thomas Hoenig, former President of the Kansas City Fed (1991-2011), former Vice Chairman of the FDIC (2012-2018), and currently the Distinguished Senior Fellow at the Mercatus Center, says that the banking system is still “vulnerable”. Two days after the filming of this interview, regulators closed Philadelphia-based Republic First Bank on April 26. Hoenig also discusses his outlook on the economy, inflation, and monetary policy.
*This video was recorded on April 24, 2024
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0:00 – Intro
1:30 – Banking sector still ‘vulnerable’
12:30 – Bank run and financial collapse
14:50 – FDIC and cryptocurrency
18:05 – Inflation outlook
22:54 – Fed cuts this year?
24:10 – Why have a 2% inflation target?
28:39 – QE and inflation
29:54 – Fed policy and other central banks
31:50 – QT and asset prices
32:47 – Fed’s forward guidance
36:00 – How Fed decisions are made
37:00 – Politics and the Fed
37:34 – Fed’s performance in 2024
#economy #bankfailure #federalreserve
24 Comments
Republic First Bank was shut down this week. Are more bank failures next? Is a systemic financial crisis in the works? Comment below and don't forget to subscribe!
FOLLOW THOMAS HOENIG:
Mercatus Center Discourse: https://www.discoursemagazine.com/
Substack: https://www.finregrag.com/
Does anyone actually beLIEve a word… a former central bWanksters says??? Honestly…& why would you?? Because they told you 1 truth in their whole tenure (CONgratulations)… shame I used to like this show!
David, did I miss it, or did you ask the most important question ….. GOLD?
The current financial system legally gamble through shorting etc. But crypto is a risk!?
Great guest! Truly enjoyed this!
The Western party of the past 50 years is finally over.
Been waiting for 2 years+ I am starting to doubt that… Should I wait and be more caution?
Insane. Talking about how BROKEN our system is how our dollar will be printed into oblivion bailing out banks and how there’s no going back on that.
But crypto is the shitty speculative asset here 😂
Other than that great insights great guest. Thanks David!
David has become one of my favorite interviewers on this platform. He always asks thoughtful questions in a respectful manner even if they challenge a speaker's perspective. He also lets his speakers talk without injecting his own opinions. He doesn't take over the conversation and steer it the way he wants it to go. That is becoming more difficult to find. David, you're a gem, I appreciate what you do!
So many ads?
What a great guest David. Both of you nailed it, you with your questions, & Tom with his insight. I love listening to these former insiders. The timing of his appearance was also perfect, with the elections looming in November. PLEASE make him a regular on your show.
What we have is a corporate capitalistic system of banking…
14:41 Ha ha, when we flourish, we take (privatize) the profit; when we fail, the government (i.e. taxpayers) save us, socializing the loss. When a poor individual fails: get out in a tent on the street! Well done, sir, well done! This is not capitalism; I believe this wonderful system is called… SOCIALISM FOR THE RICH.
Wow. His statements about “crypto banks” are very revealing.
What the difference between them crypto banks and up Morgan their private as well why should they be bailed this is clearly fashism public fund the losses corporations take the profits that’s all this private public partnerships are look up the definition of fashism
Money never disappears it just changes places and hands, so there was no great financial crises in 2008 .
The federal reserve is a private institution so why are they entitled to a government backstop. The social experiment they pushed for 50 years was their own bad speculation.
Thank you Sir. I appreciate the light of reason and wisdom in this overly confusing area. Too many fly by night commentators have created unreal expectations about investing in whatever asset is for sale. Your clarity is appreciated. Thank you Mr. Lin.
thank you David and Mr. Hoenig such a good interview, honesty is so important for informed consent 🙂
I heard confirmation that the fed is always just as wrong as anyone else at predictions and reactions, the interest rate target is made-up and arbitrary, and that 0% is optimal. Alrighty then… Why isn’t this mainstream knowledge? And if it is then why isn’t something being done? Why do we even have a central bank? Let the markets be free. The collective wisdom and intelligence of markets is much greater than any one individual or group no matter how many ivy leagues are involved. I guess there must be some few who are benefiting from the current setup…at the expense of everyone else unfortunately.
Powellll measuring inflation depends on his salary 😅😅😅
All the consequences taking risk on the public. All the reward to the person/institution taking the risk.
He speaks like he really believes that US debt will ever be paid. It is all so sweet but I think this guy is very restrained in saying the real truth.
'Financial innovation' is what got us here.