Yes, they're talking about mortgage Holdings At a bank whose clients are super interest rate sensitive, the whole thing from top to bottom, in my opinion, is just horribly mismanaged. and the fact that we're giving anybody a Buy in this instance is so nothing to be proud of. I Think that's pretty much that was my question for you Rick Dude, Right on right. Freaking on.

This guy nailed it. This is ridiculous. This bailout and whether individuals should be bailed out, the bank should be bailed out. Do you hold these depositors effectively accountable? My mom's 87 years old, she still moves her money around, she's very cognizant of insured up to what 250 000 means.

and I don't suspect there's a lot of businesses that could have less than that. Which means they need to do their due diligence and where they domicile their money. Yeah, I have no sorry feelings for anybody. And when I hear stories that people are happy that they've done this because their relatives have deposits, my guess is all the relatives were thinking about probably Handler money with more care than the clients of this.

Bank Okay and then finally, Rick Now now that it appears that that everybody's being backstopped, it turns effectively so many banks into public utilities. Yep, how should, how should they be operated? Then what should Executives get paid to do what they do running our Public Utilities You answered your own question. Look at our Public Utilities You know, when we first invented cars and gasoline, they both grew up together. You had no gas stations.

You hardly had any cars. They grew up together. Now here we are, of course, trying to make EVS happen overnight in an inorganic way. Okay, same thing we're talking about energy companies as utilities.

To me when you put those words together, when any entity becomes a utility, it just becomes more mismanaged as they go arm and arm with the government, right? Rick Thank you. We got some other news beginning. Yeah, look, he is so right. I mean straight up fact bombs there Yesterday I went into Uh Mario's Twitter spaces.

a lot of people in there Bill Ackman you had presidential candidates in there Senators Congressmen people. Well, anybody who really matters on Twitter was either listening or in there I had the honor of speaking on that Twitter spaces and I was one of the people one of the very few people actually taking the contrarian point of view. Now I like to do that not solely to be contrarian, but because I do feel like I have different perspectives and my argument was hold on a second. Maybe depositors should be taking at least a little bit of a haircut because if depositors don't take a little bit of a haircut, and the government, which is exactly what they ended up doing, ends up just bailing out everyone.

What they're sending the signal of is don't worry Banks If you fail because you're too risky with your lending, don't worry. We will bail you out even if you're less than too big to fail. In other words, you're smaller than too big to fail. You're too small and to to fail.

Well, that doesn't make sense because now we're basically saying bail everyone Out! My thesis is all you're doing by a hundred percent backstopping Everyone is giving the middle finger to FDIC Insurance You've just told all of America that a 250 000 limit that is your insured limit per account per person. So you could actually you know Jerry rig that all the way up to like two million dollars. You can go to the Fdic.gov and you can figure out oh if I have uh, an IRA if my wife has an account, if I have an account, if we have a joint account, you can do all the math and you can get up to two million dollars in FDIC Insurance All you have to do is go to Fdic.gov and figure it out. But basically what the government just said is hey, um, that 250 000 limit.

We weren't serious about that. The limits actually infinite. Don't worry, you're too stupid to understand that when you go to a small community bank and they underwrite your loans. well, maybe we don't even know what underwrite means when they give you a loan without even asking what your income is or can airing if you have any income.

Kind of like 2008 when dead people got loans for mortgages and people were like, well, housing just goes up forever. Maybe maybe the government just thought to say don't worry, we'll pamper you all the way from birth to death because you're too stupid to figure it out yourself. To me, it's a big middle finger to people who actually are diligent with their money. We all have heard about 250k.

FDIC There's nobody that goes into a bank and doesn't know about it because there's signs and stickers everywhere that tell you you know once you have more than 250k and subject to the various different accounts rules that I talked about that you're at risk and the fact that you benefit as a depositor from the incentives the bank gives because they're taking riskier action by either offering you higher rates, lower fees, or no underwriting. Basically simple lines of credit for basically uh, businesses that have no cash flow mortgages for business owners of businesses that have no cash flow that are super risky. Now, the bank takes all the risk and what you're saying by creating an unlimited guarantee for them, not even taking a mere what, maybe even a five percent haircut of deposits off of over 250k. Well, you're basically telling every other bank in the United States is hey, don't worry, take all the risk you want because we will bail you out.

No matter what, we'll just bail you out, So take any risk you want. So why the hell would anybody not now? Uh, just take whatever kind of risky loans they can get. Why would Banks not start offering those potentially creating even more of a bubble in the future? Now short term. it's frustrating.

It's a middle finger to the people who are diligent and the people who pay attention to these sort of risks. However, it's obviously a boon in the short term for those businesses who get all this capital and also potentially the moral hazard that's now created is going to potentially reanimate or accelerate. Should I say the debt bubble that we're actually in Now That could actually be fantastic for like the next 10 years. It's entirely possible that 10 years from now we're just straight up because all the banks are like we're just going to get bailed out.

So let's just lend money like crazy. and what could happen is you could have the craziest bull market ever for the next 10 years. and really, what you're just doing is setting up an even bigger bubble to pop in the future. You're kicking the can down the road.

That's all it is. It's Corp It's it's banking. Socialism is what it is. Nobody's allowed to lose money.

No, because everybody's too stupid to handle things themselves. Let's just let's just you know, let taxpayers all distribute the the costs now. I Get it, People keep saying Kevin Biden And the treasury. Department Say no.

It's not taxpayers that are paying the bill. Yup, yeah it is. These are facilities that were established by the Federal Reserve to take toxic assets and were funded by taxpayers back in 2008. After the Dodd-Frank crisis, it's called the Treasury Exchange Stabilization Fund.

It's ultimately what backstops the program. When the FED loses money on the toxic assets, they're buying through the B Tfp bailout facility. It's the acronym is not by the effing Fed pivot. Uh, but that's that's what it kind of seems like.

But anyway, um, it's wild because when that program actually takes losses, guess who's gonna cover the bill? Taxpayers. So it's totally a fraud in my opinion to basically call this not a taxpayer-funded bailout. but whatever. let them label it however they want.

Uh, their goal right now is to prevent contagion. To me, it just sends a big signal that the Fed's not concerned about inflation anymore. Not only is the Fed not concerned about inflation, but they're able to wake up on a Sunday because they're so nervous about what's actually happening in markets that they realize, oh crap, it's probably not going to end with this one bank. It's probably going to keep getting worse.

I Don't know. That's just that's just my thesis. I mean maybe maybe I'm wrong to say people should actually look at an insurance policy and go that says I'm only insured up to 250k. Maybe I should be smart about where I put my money and diversify.

Oh wait, why would I do that? I'll just act dumb and let the FED bail me out. And sure enough, that's exactly what they do. Whatever Man, whatever, you know, the reality is the vast 99 of Americans don't exceed the 250k FDIC limit anyway. So this is just straight up taking money from taxpayers and bailing out rich people or businesses with lots of money Now I Get it? I Get it.

There are a lot of businesses who are operating their business paycheck to paycheck and they're like ah, but if I don't have access to my Capital I can't payroll pay payroll? Okay, well, you got back. stopped. Now take the lesson. Take that as a little wake-up call and diversify your money away.

Don't ever put yourself in a situation again where all your money is sitting at at a one of these smaller Banks to where if one of them fails you don't have money. At least if you're at the larger Banks you know the FED is guaranteed going to bail them out. Uh, and run the money printer because they've already said that the top eight are too big to fail, right? The smaller ones maybe at least diversify amongst the smaller ones. But then again, right now, the FED has set a precedent for bailing everything out.

so maybe that doesn't.