Bailing out uninsured deposits encourages bank runs

  In the failure of Silicon Valley Bank and Signature Bank, U.S. officials decided to cover all the uninsured deposits in both banks — that is, deposits that exceeded the $250,000 insurance coverage of the FDIC. The belief was that failing to cover those uninsured deposits ran the risk that bank runs could spread to more banks. Covering those uninsured deposits was intended to calm depositors in other banks, which would thereby make more bank runs less likely.

Will the Inflation Reduction Act actually reduce inflation? How will the corporate minimum tax work? An economist has answers

  The U.S. is about to spend US$490 billion over 10 years on reducing greenhouse gas emissions, improving health care, and reducing the federal deficit. Where’s all that money coming from?

  We asked University of Michigan economist Nirupama Rao to examine how the new law will raise enough revenue to pay for clean energy tax credits, Affordable Care Act subsidies, and incentives for manufacturers to use cleaner technologies, among other initiatives. We also wanted to know, given its name, will the Inflation Reduction Act actually bring down inflation?

Biden’s Cabinet of many women shows other world leaders that US takes gender equality seriously

  President Joe Biden’s Cabinet is the most diverse in U.S. history.

  It has five women, including the first female treasury secretary, Janet Yellen, and Deb Haaland, who will become the first Native American Cabinet member if confirmed as interior secretary. Secretary of Transportation Pete Buttigieg is the first openly gay man to win Senate confirmation and lead a Cabinet department.

  Four of Biden’s 15 Cabinet nominees identify as Latino or Black. They also span generations, ranging in age from 39 to 74.