The Big 5: The Top Five News Stories this Week (3/3-3/10)

Happy spring everyone. This was a big week for the financial sector, stock prices are fluctuating, interest rates increasing, but also big bank failures.  Internationally, this week brought large protest and public unrest. Hopefully as March continues on more positive news can spread.



Silicon Valley Bank, 48 hours to bankrupt  

Silicon Valley Bank, known for its involvement in many startups and venture capital, in a whirlwind of 48 hours went from secure to failure. Some economists and bankers are calling the end of SVB the second biggest bank failure in history. Mirroring other economic crises, Silicon Valley Bank after the failure of one of their ventures, triggered mass withdrawals by patrons, which spiraled into the end of the 211 billion dollar bank. The bank had mostly pooled money into safe investments, however caught by the growing interest rates, the bank fell. Again, the following day a crypto bank also fell into bankruptcy. 


West Virginia train derailment 

On the 7th another train went off the rails. In West Virginia, an empty coal train slid alongside a rock and derailed. 3 people were injured in the event, but no life threatening injuries were reported. Following the derailment the fuel spilled and leaked into a waterway nearby. 2023 seems to be the year of train derailments, beginning with the Ohio disaster to another crash in Greece. Train derailments are on the rise but so are questions regarding safety of this transportation. 


Protests in France threaten a shut down 

Recently President Emmanuel Macron of France proposed a new pension plan for the nation, one that raised the retirement age from 62 to 64. Polls are showing that most of the French disapprove of this new plan, but with slim support. Protesters throughout the week have been gathering on the street to demonstrate their dislike for the measure. And strikes across French industry are beginning to affect the nation, most notably in the transportation sector. Again, protesters are planning large strikes across the nation to again appeal to their parliament to stop this pension plan from passing, these strikes would take place March 11. 


23 people arrested and charged with domestic terrorism after protests in “Cop City” Atlanta 

On March 5th, protesters of leftwing ideologies gathered in front of a new Georgia police training center. Earlier this year, one protester was killed at the same location. Protesters threw flaming bottles and rocks at police officers, 35 of the protesters were detained. These protesters come from both anti-police backgrounds, following the unrest in 2020, but also environmental protection background, because this new faculty is in the woods. These protesters call themselves defenders of the forest. Most of the arrested protesters were Americans, but one was from France and another from Canada. 


The Federal Reserve is looking to raise the interest rates again 

The Federal Reserve last time only increased interest rates by 0.2%. However, this week, Chairman of the Federal Reserve, Jerome Powell, admitted that inflation rates are increasing more than expected, so interest rates will once again be altered. Today’s interest rate is 7.05%, some analysts are saying in 2023 the FR could increase rates by 5.5-5.75% more, well others are more aggressive. This foreshadowed interest rate increase is leading to hundreds of points lost in the stock market, leading to some economic trouble.