Welcome back to the channel everyone today, i want to talk about how a number of major banks in the uk and in the us are about to go bankrupt, so stay tuned and let's make some money and now we'll dive straight in with the key information. So rizzo tweeted saying the bank of england has completed a financial risk assessment and has identified several banks of high risk lloyd's standard and chartered and hsbc. The bank of england aims to avoid too big to fail banks collapsing, like they did in 2008.. Basically, the bank of england has performed some stress tests and said guys we aren't going to bail you out, like we did back in 2008, we're effectively gon na leave you high and dry.

We think most of you will survive, but three of these major banks - probably not the article - says the bank of england - believes that uk banks should no longer be classified as too big to fail and shouldn't be bailed out. It says the bank of england is satisfied that lenders have taken steps to ensure they are no longer too big to fail in any future crisis. It said on friday, though it did find shortcomings at three leading banks. The bank of england is aiming to stop banks from requiring taxpayers to bail them out, as happened in the 2007-2009 global financial crisis.

So basically, the bank of england is saying that in the next crisis they cannot afford to let the taxpayers bail out these big banks and effectively going to leave them high and dry. They do think that most banks will potentially survive, but obviously there is definitely some shortcomings at three leading banks. On top of that, the bank of england said that it has also identified areas of further enhancement for six companies. Obviously, the three banks found to have shortcomings were lloyds or lloyd's tsb standard and chartered and hsbc all three were found not to have produced sufficient analysis of their liquidity needs were they to be wound down.

Basically, if these banks were to struggle during the coming crisis and had to sell off portions of their business and effectively be wound down, they would really struggle and end up with a liquidity crisis aka. They wouldn't just be able to sell off some loss-making portions of their business. The entire bank would end up going bankrupt and on top of that globe, spanning banks, hsbc and standard uncharted were also found to have failed to produce up to scratch. Restructuring plans aka, they don't have the ability to successfully restructure and would end up going bankrupt in the cutting crisis, and on top of that, back in 2018, the us federal reserve identified that the us arm of barclays also had those same shortcomings in their resolution plan And as jan jack said, that effectively means no more bailouts on the backs of the working class.

Now it's interesting that the shortcomings have been identified at a time when the cpi data has just been released and we're yet seeing inflation rise again. Obviously, between march and april, inflation fell from eight point: five percent down to eight point three percent. The may reading was expected to be around eight point three percent as well, but has now jumped to a new high of 8.6. As i expected in my video yesterday, inflation has once again risen and so far the rate hikes haven't been enough to even begin reducing the inflation.

The previous rate hike was expected to start cooling inflation down to the fed's target of around two percent, but so far inflation hasn't cooled by six percentage points. So far, it's still increasing. Therefore, clearly, the fed is going to have to continue to hiking rates faster and further than expected in order to bring down inflation, but obviously, if rates are hiked too fast, it will certainly also crash the market and, as meek, kevin tweeted, the terrible inflation numbers this Morning, just helped to reinforce elon musk's bad feeling and kevin also reiterates that inflation is not transitory. Kevin believes that we are in for a hard landing, not a soft landing.

Aka he's expecting the market to continue crashing. He said the fed is far behind the curve and the cpi should be named. Cp lie if inflation expectations now balloon, the fed will have to get more aggressive and could end up crashing the economy, and i think, with this one, ain't munching crayons, is exactly right. He said i will say again: they would rather burn the entire market than pay up for their terrible bear.

Clearly, the bank of england is expecting many banks to not survive the next coming crisis as there's three major banks that are very high risk and clearly inflation is just spiraling further and further out of control, and it all just goes to show that these over-leveraged hedge Funds with their over-leveraged lungs and over-leveraged shorts, just simply won't close out of their terrible bets. Clearly, they're more than happy to watch the world burn and watch the market crash, rather than just cover and close out of their amc shorts, and i think that can really be evidenced by this tweet here from hang loose. He said paypal is a good and strong company. He said this is what it looks like when hedge funds refuse to cover their shorts and must sell off their blue chip assets, because they're starving for liquidity.

Paypal obviously recently ran to highs of around three hundred and ten dollars per share back in december, but has since crashed down to below a hundred dollars per share and even below eighty dollars per share. That's around a 75 crash from its highs even below the pandemic. Lows seen back in 2020, but yeah, it still doesn't seem like the market crashes even remotely finished. Obviously many large analysts and many large ceos are still expecting the s p 500 to crash by another 15 to 20 percent.

On the light side, that means that potentially paypal could yet fall another 75 on top of this and could potentially be trading for lows of 20 to 30 dollars per share before the crash is actually over. Clearly, this is evidence of hedge funds selling out of their long positions on the largest blue chip assets to support their over leverage shorts, and he said paypal's earnings definitely don't represent a reason for such a crash. This is happening to blue chip stocks across the board. If we look at paypal's earnings on their most recent earnings, they beat on eps and on revenue, and even in many of their previous earnings, they've still beat on either revenue or on eps quite successfully.

Paypal is still one of the largest online payment systems that exist not only in the us, but in the entire world. It's still a very successful company and is utilized pretty much everywhere. But yet the stock is down over 75 percent and as hangloo says, this is just due to hedge funds, refusing to cover their short positions and instead selling off all of their blue chip assets, because they're starving for liquidity and starving for available margin. They have to continue averaging up on their short positions and throwing more and more and more money into their amc shorts to continue to hold amc down.

But i think one interesting piece of news for amc is elon musk's recent reply to a tweet from daniel crosby, daniel tweeted, about diet, coke and elon replied, saying diet. Coke is amazing, especially the soda fountain version at movie theaters with salt and butter popcorn. Now, i think, that's a really interesting reference for elon to make you can go to basically any drive-through fast food chain in the entire us and still get your diet coke from the soda fountain as opposed to cans at the supermarket, but yeah elon references, the soda Fountains not to drive through fast food chains but to movie theaters with salt and butter popcorn, but he didn't just stop there. He followed up by saying there's something special about enjoying a movie in a theater with total strangers.

He said i hope that never goes away. Obviously, it's no secret that elon musk does not like short sellers, as he was. The victim of short selling or tesla was the victim of short selling for many many years, and therefore it seems likely that elon musk is at the moment silently supporting amc and is hoping that amc does indeed squeeze the shorts and cause the mother of all short Squeezes, but it wouldn't surprise me if elon musk doesn't stay a silent supporter of amc forever and does actually end up investing in amc if he believes there's something special about enjoying movies in a theater with total strangers, maybe he'll end up investing directly into amc and Buying out a portion of the business or buying up a portion of the shares and as lucrative lou says bro if elon musk ever came out, having bought amc and actually caused the mother of all short squeezes, he said: i'd never drive anything but a tesla. As long as i live, he said i'd only fly spacex only drive through tunnels made by the boring company and also download all of my thoughts via neuralink forever elon had over 2 100 replies to this tweet from many apes in the amc family.

All encouraging him to buy amc or to partner with amc as unusually tweeted. He said how about partnering with amc, to bring the big movies to your car. You can charge and watch the latest movie, perhaps and to finish off this video. I wanted to talk about this article from market watch.

It says, are retail investors better at picking stocks than hedge funds? Bank of america says? The answer is yes, it says wall street professionals have been known to exhibit a hearty attitude towards retail traders, but, as it happens, the dumb money might be smarter than the pros think bank of america found that retail inflows on average have actually been better indicators of Performance than hedge fund inflows, if only slightly this, is in fact returns. Following periods of retail inflows have been above average and returns. Post retail selling have actually been below average. It seems interesting that now of all times, market watchers starting to side with us and believe that retail investors are actually better than hedge funds, but yeah.

I think this is just another piece of data that shows just how close we really are to the amc squeeze but guys be sure to. Let me know what you think down in the comments below and also be sure to ding that notification bell, because that way, you'll be alerted. When i upload a new video cheers.