It Couldn't Be Worse: Elon Musk on the American Banking System

American billionaire Elon Musk described the state of the U.S. banking system with the words, "it couldn't be worse." Thus, the entrepreneur commented on the Federal Reserve's statement regarding the reliability of this system in the country.

Specifically, the head of the regulatory body, Jerome Powell, stated that the bankruptcy of Silicon Valley Bank was due to the company's inability to manage risks properly.

The lending company went bankrupt in just two days, marking the largest bankruptcy in the U.S. since the 2008 financial crisis. Following that, "Signature Bank" also shut down in the U.S. due to systemic risks.

Lawrence MacDonald, former vice president of Lehman Brothers financial corporation, claims that a recession in the U.S. is inevitable. According to him, a sharp decline in economic activity and GDP, along with job losses, can be expected in the coming month or two.