The Daily Money: SVB's collapse is testing Biden

Biden isn't confronting his first banking crisis. But the stakes are much higher for him now as president especially ahead of an election.

Read in browser Read in browser The Daily Money ALL THE MONEY NEWS YOU NEED TO KNOW Fri Mar 24 2023 Elisabeth Buchwald |  Personal Finance & Markets Reporter @BuchElisabeth 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. Security guards let individuals enter the Silicon Valley Bank's headquarters in Santa Clara, Calif., March 13, 2023. Benjamin Fanjoy, AP "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 USA TODAY. 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 USA TODAY. You can follow her on Twitter @BuchElisabeth and sign up for our Daily Money newsletter here As fears over banking crisis swirl, a new test for Biden's leadership The White House says President Biden took "decisive and forceful actions" to keep bank failures from spreading but he's not out of the woods yet. READ MORE Advertisement Is your rent going up? Here's why you should negotiate first. Why might your landlord be willing to negotiate a rent increase rather than stick to their number? It's simple. Finding new tenants can be a hassle. READ MORE Recalled eyedrops linked to outbreak reporting 3 deaths, 8 cases of vision loss The recalled EzriCare or Delsam Pharma's Artificial Tears have been linked to a deadly outbreak of a drug-resistant strain of Pseudomonas aeruginosa. READ MORE Could the bank crisis doom this possible Social Security change? 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READ MORE Can new retirees recover from inflation, rate, failed banks havoc? Inflation, aggressive Fed rate hikes, failed banks are creating market havoc that's crushing new retirees' futures. Will they be able to recover? READ MORE Ohio public pension funds lose millions in Silicon Valley Bank collapse Ohio's State Teachers Retirement System took the biggest hit. Last week, it had Silicon Valley Bank shares worth $27.2M, about 0.03% of its portfolio. READ MORE Advertisement Sign up for the news you want Exclusive newsletters are part of your subscription, don't miss out! We're always working to add benefits for subscribers like you. SEE ALL NEWSLETTERS ➔ SEE ALL NEWSLETTERS ➔ Newsletters   |    eNewspaper   |   Crosswords Follow Us Problem viewing email? View in browser Unsubscribe  •   Manage Newsletters  •  Terms of Service  •   Privacy Policy/Your California Privacy Rights  •  Privacy Notice  •   Do Not Sell My Info/Cookie Policy  •  Feedback