The Daily Money: Silicon Valley Bank's collapse is testing Biden
TGIF! It has been a week...
Before you start to wind down for the weekend here are the stories you need to know.
Just about every financial advisor will tell you how important it is to save for retirement and take advantage of tax-advantaged investment accounts like a 401(k). But what they often don't talk about is when it's OK not to save for retirement.
For instance, if you have a lot of debt, it's totally OK not to save for retirement until you pay it down. Another reason not to save for retirement is if you don't have an emergency savings fund.
“With the economic challenges we’ve experienced over the last 12 months and will experience over the next 12 to 24 months, the idea of layoffs is real," says Rich Guerrini, president and CEO of PNC Investment. "Without an emergency fund, that really makes that scenario dire.”
SVB's collapse is testing Biden
This isn't President Joe Biden's first time confronting a banking crisis. But it is his first time confronting it as commander-in-chief.
As vice president, Biden made some blunders in the midst of the "clean up" phase of the Great Recession that had dire consequences. He learned the hard way then that during a banking crisis, it's crucial to exude confidence.
"In today's crisis, Biden seems intent on avoiding any ambiguity," White House reporters Maureen Groppe and Michael Collins wrote in their latest piece. "He has sought to reassure financial markets, make sure banking customers have access to their money and, just as important, try to convince the public that government intervention to rescue the failing banks is not a bailout."
Biden's handling of the economy has already been one of his biggest tests as president, and many polls indicate he's failing in the eyes of voters. But how's he doing with the current crisis?
📰 More stories you shouldn't miss 📰
Your top inflation questions answered: Understanding why prices rise, what causes it and who it hurts most.
Forgot to cancel that subscription?: New rules could make it easier for customers to drop.
Fed rate hikes and the housing market: Housing market is 'overly sensitive' to Fed rate hikes. Experts weigh in on what's next.
About The Daily Money
Each weekday, The Daily Money delivers the best consumer news from Paste BN. We break down financial news and provide the TLDR version: how decisions by the Federal Reserve, government and companies impact you.
Elisabeth Buchwald is a personal finance and markets correspondent for Paste BN. You can follow her on Twitter @BuchElisabeth and sign up for our Daily Money newsletter here