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 option...so 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.
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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?'
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.
Last month, in anticipation of our 2023 State of Women campaign, we asked Daily Skimm readers to tell us how you are reshaping your finances, careers, and families in the wake of the past few years. Your answers indicated that millennial women are over all of it: default unpaid caregiver/Zoom teacher status, unreasonable expectations at work, partners not doing their share, doctors who gaslight them, politicians who can't enact helpful policy. But the numbers also suggested that women aren't resigned; instead, they are reprioritizing, putting their own wellbeing first because they've learned no one else will.
Looking ahead to May, when we will celebrate Asian Pacific Islander Desi American (APIDA) Heritage Month, we want to hear specifically from readers who identify as Asian American. In the last three years, what actions have you taken — big or small — that dramatically improved your life, and how? Tell us about it using this form. We may feature your answer in an upcoming story.
In Case You Missed It
If you've always got 10 tabs open, we get it. So much to browse, so little time. Which is why we've rounded up some of our favorite recent product recs so you don't miss a thing. Check out…
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We like to celebrate the wins, big and small. Let us know how your friends, neighbors, coworkers (and yes, even you) are making career moves, checking off goals, or making an impact in the community.
Above and beyond…Laura B (CA). After her son was diagnosed with Apraxia of Speech (AOS), she used her background in psychology and graphic design to create a communication system. She's making it available to anyone who might need the help. Check it out.
(Some) Birthdays…theSkimm's Maria McCallen (NY), Kelly Mahaney (FL), Alix Duchouquette (TX), Anne Marie Ristow (FL), Erinn Gloster (MA), Alyssa Smith (NE), Kate Brown (DC), Janelle Pizarro (FL), Libby Cheney (TX), Kelly Hotz (CA), Linda Dick (CT), Karen Tovell Weber (IL), Rachel Walker (SC), Emilee Blouin (MI), Sara Patton (FL)
PS: Paging all members of theSkimm. Reach out here for a chance to be featured.
Skimm'd by: Rashaan Ayesh, Melanie De Lima, Maria del Carmen Corpus, and Mariza Smajlaj
Photos by FABRICE COFFRINI/AFP via Getty Images, Brand Partners
