Welcome back to the channel everyone today, i want to talk about how the us is officially in a recession. I want to talk about what this means for the amt squeeze and also for the wider economy, so stay tuned and let's make some money, and i want to dive straight in with the key information. So what your guru has tweeted saying bank of america says we're in a technical recession. I do want to go through this article and speak about exactly what the bank of america have said, but i also want to quickly recap: what's been going on in the last few days, on friday, we saw the s p, 500, dropping massively from 401 all the Way down to 389 in the pre-market this morning, i've marked it with this small little o on the s p 500 chart and we're all the way down again back to 380 flat.

We could potentially break past and set new lows, obviously resuming that market crash. Like i said we would last week, we seem to well and truly be back into this crashing territory back on track with this downward slope. I do expect over the next week or two the market to crash further, and we may see the s p 500 set new lows at 370 or even the 360 area. Again, we're also seeing crypto getting well and truly for a better word wrecked, we're seeing bitcoin down seven percent ethereum down eight percent solana down 12 and many many more bitcoin actually whipped below this area of 25.

000. All the way down to 23 700. - and i think this puts the fed in a really tricky situation for this week. So far this week, we've got the fed interest rate decision on wednesday.

We've also got their fomc statement coming out on wednesday as well, and also some economic projections coming on wednesday as well. Jerome powell on the fed are stuck between a 50 basis, point rate hike, which would obviously not do anything to tamper inflation and inflation would literally soar higher. Alternatively, jerome powell can hike rates by 75 basis points which may cause an instant recession jerome powell. At the moment is well and truly stuck between a rock and a hard place, he has to hike rates, but if he doesn't hike them enough, we're going to see inflation continuing to rise and if he hikes them too much we're going to see an insta recession.

But bank of america believed that we're already in that recession, we've said we're in a technical recession, but we just don't realize it, and on top of that bank of america sees more shocks to come. They've said the shocks aren't over get ready. That's the timely friday advice of bank of america delivered hours before worse than expected. U.S inflation data knocked the wind out of wall street and left investors bracing for more aggressive central bank action.

The cost of living still surged by 1 in may, even with the rate hikes, therefore setting new annual inflation rates of a new high at 8.6 up from 8.3 percent in case you're, a visual learner bank of america have put together this excellent bull and bear indicator On the right we have extremely bullish and obviously on the left, extremely bearish and the bank of america are currently sat at 0.3 on a scale of 1 to 10.. Clearly, that shows that bank of america aren't just a smidge, bearish they're, actually extremely bearish. One could say that actually they couldn't be more bearish honey said that we're in a technical recession, but we just don't realize it. He noted that even murkier consumer data and household and consumer balance sheets are indicating a shallow recession is ahead, but he added that what can turn shallow into deep is the great unknown of the shadow banking system.

So far, they're only expecting a shallow recession, but obviously due to the amount of heavily over leveraged derivatives in the market, a market which is expected to be worth around four quadrillion dollars. This shallow recession could all of a sudden turn very, very deep stanley duck and miller. A former hedge fund manager has spoken on the bear market. He said my best guess is that we're six months into the current bear market for those tactically trading.

It is possible. The first leg of that bear market has ended, but i think it's highly highly probable that the bear market has a ways to run. He also spoke on a soft or hard landing for the fed, and he said if you're predicting a soft landing. That's going against decades of history and is very very unlikely to happen, and he said, given the current extent of the asset bubbles, the destruction in the markets given what's currently going on in ukraine, given the current panamic policy in china, he said i don't take a Lot of comfort in that, so i assume and pretty strongly that soon we're going to have a recession sometime in 2023, if not at the end of 2022.

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Each. That's up to twelve thousand five hundred dollars in free stocks and a free share of lucid guaranteed. On top of that, and at the same time, unusual wells has tweeted saying that biden has just said: we're gon na live with this inflation for a while, and that was set at a fundraising event for the democratic party. So it seems that all signs are pointing to the fact that the us is already in a recession and if not, it will be entering a recession very very soon.

But so what exactly? Does that mean for amc and for the amc squeeze? And what exactly does that mean for the wider economy and what does it mean for you now? Obviously, if we enter a recession, the s p 500 is going to continue to drop further. The qqq or the nasdaq is going to continue dropping further, and these major blue chip stocks are going to continue to fall. Don't forget the majority of hedge funds out there have the majority of their portfolio invested into blue chip stocks and those funds that are currently shorting. Amc are no different.

These funds, like citadel susquehanna, melvin capital and many others, have the majority of their portfolio allocated and they're, currently long on large tech stocks. So obviously, as these large tech stocks fall, their portfolio will shrink. They'll continue to lose money and they'll continue to struggle to meet margin requirements. Yes, as the wider market continues to fall, amc will also continue to fall alongside it as the wider market sales off.

It will impact all stocks in the market, not just those blue chip stocks, but all stocks, including amc. However, the gains that these funds generate from shorting amc will be outweighed by the losses they take from holding their blue chip. S p 500 stocks. As i said, the majority of their portfolio, maybe 80 or 90 of their portfolio, is currently allocated along the s.

P 500. Only 10 of their individual portfolios are shorting stocks like amc, gamestop and many others. Yes, even with all of the synthetic shares, that's billions and billions and billions of dollars that they have spent - or they have allocated shorting amc, but don't forget billions and billions of dollars is fairly small fry compared to the trillions of dollars that they have currently long. In the market and therefore when these hedge funds continue to take more and more and more losses losing out more and more and more on their blue chip, s p 500 stocks they'll struggle to meet those margin, requirements more and more, and they will eventually face liquidation And they will have to face those margin, calls and effectively close their fund and obviously to close a hedge fund.

You officially have to sell off all of your stocks and officially have to cover or close out of all of your short positions as well. Now again, we have seen these hedge funds kick the can over the last year year and a half and therefore it wouldn't surprise me when one fund is going bankrupt, if it effectively takes their bundle of amc shorts and passes them on to another hedge fund, they May sell off their bundle of shorts for some cash that they can use to cover other short positions and use to effectively wind down the fund and return money to investors. Therefore, it wouldn't surprise me, while these funds are all going bankrupt, if they're, effectively playing hot potato and passing the short positions around to the non-bankrupted firm. But at the end of the day, when all is said and done, these funds will end up being liquidated and eventually they will be forced to cover their overall short positions in amc and in gamestop and obviously, when that happens, they will be forced to buy back Billions and billions of amc shares causing the short squeeze, but so what exactly? Does that mean for you and what impact will that have on your everyday lives? Obviously it will cause the amc and gamestop short squeeze, which is a brilliant, brilliant thing, but at the same time, entering a recession means that people are going to lose jobs.

People are going to lose their homes. People are going to lose their savings, their 401ks are going to be decimated and there is going to be panic on the streets and therefore, while we will succeed causing the squeeze generating unfounded wealth. At the same time, we're also likely to lose our jobs and potentially lose our homes, unless, obviously, we generate enough money from the squeeze to cover our losses. I think at this time it's very important to ensure that you're organized and ensure that as much of your money as possible is protected by fdic insurance or sipc insurance in the uk.

Obviously, the more of your money that you can have protected means the more of your money that you will end up with after the recession and after banks collapse. I think it's important to ensure that you have as much money put aside as you can for the coming recession to ensure that you have enough money for basic necessities like food, water, electricity and housing. At the same time, i also think it's very important to make sure that your loved ones also have enough money put aside for the coming recession, and i do personally think it's very important to ensure that your money is spread around into multiple banks or financial institutions. To maximize the use of your sipc insurance or fdic insurance, and also because we could potentially face bank runs as nazim tweeted there's currently a run on chinese banks and it's been completely ignored by the world.

This article from asianmarkets.com says: there's a run on chinese banks and it's being ignored by the world. They've said in the anatomy of an economic crisis, a bank run is the point of no return. Bank runs occur when people scramble to withdraw cash from banks in fear of collapse. It says in the worst cases the bank's liquidity, cash reserves are exhausted, not everyone gets their money and the bank defaults.

They've said it's a grim scenario which fortunately, has occurred. Rarely in history, but right now we're currently in the midst of a chinese bank run of 2022 and as jennifer zhang tweeted, she said all banks in shanghai have restricted depositors from withdrawing their money and she said: remember the videos about banks having no money to withdraw From hennan province that i tweeted before a bank run is about to sweep china, and on top of that, six major banks from the helen province have actually frozen all withdrawals since mid-april. Now this article isn't just something that was also written in april. This article was written right now on the 13th of june, and withdrawals have been suspended since mid-april that's about two months of zero withdrawals.

Now this isn't just some weird sketchy: cryptocurrency company, stopping you from withdrawing your cash, that's clearly a scam. This is major banks in the heart of china. Back in april, these banks suspended online banking and told depositors rushing to local bank branches that they are unable to withdraw funds. Now, during the peak of the coming recession in the united states, this is something that is very, very possible and very much could also happen in the united states as well, and that's why i do think it's very important to ensure that you have your money distributed Between multiple different financial institutions, as you never know which institution is going to go, barely up like lehman and bear stearns did back in, but guys be sure to.

Let me know what you think down in the comments below also be sure to do that notification bell, because that way, you'll be alerted. When i upload a new video cheers.