You may have seen the fed recently passed all 33 banks that participated in the latest round of fed stress tests. However, today i want to explain how the fed actually lied in these test results and moved the goal posts so stay tuned and let's make some money, and now i'm want to dive straight in with the key information, so better markets, tweeted saying from a pandemic and War to skyrocketing inflation and speculative financial bubbles, our financial system is facing an enormous amount of pressure, yet the federal reserve stress tests continue to be too stress. Less they've said today's results show the tests don't actually test stressed or test the banks. They provide little to no confidence that the country's large banks will be able to withstand multiple stresses facing financial markets without another bailout.

The american public deserves better, so these tests were originally designed to stress the banks and test the banks during an economic crisis. However, recently the goal posts have been removed after the financial crisis in 2008, this reserve ratio was implemented to ensure that at all times and in all circumstances, the banks had enough liquid cash on hand. These banks, having liquid cash on hand, helps avoid a run on the banks in the event of an economic crisis. It helps to ensure that any losses suffered by these banks can be backstopped, and these banks won't need a bailout because at all times, they're carrying sufficient cash investopedia says in fractional reserve banking.

The reserve ratio is key to understand how much credit money banks can make by lending out deposits. For example, if a bank has 500 million dollars in customer deposits, it must hold 50 million dollars or 10 percent in reserve. The bank can obviously lend out the remaining 90 of the cash that it holds to generate profit and to make more money. But at all times they must hold a 10 reserve requirement to avoid a run on the banks and to ensure that these banks actually have cash on hand.

It's designed so that if the bank implodes, they can only lose 90 percent of the cash that they are holding and they will still have the remaining 10 cash and will survive without a bailout. However, as announced on march 15 2020, the federal reserve board actually reduced. The reserve requirement ratios to zero percent effective march 26 2020.. So, during the pandemic, this reserve ratio is reduced from 10 down to 0 and since the pandemic it was never increased back up to that 10 mark.

So these stress tests that are being performed by the fed is basically testing the bank to ensure that they have equal two or more than zero dollars on hand in the event of a financial crisis, basically saying if the bank implodes and loses 100 of its capital. But still has zero percent of its capital left. Then they passed the test. Potentially every single one of these 33 major u.s banks could have a layman brothers moment and implode and lose 100 of their customer deposits, but still pass these fed stress tests.

The better markets article says, the federal reserve stress tests are too stress less when all too big to fail. Banks always pass even at a time of extreme stress like now, despite a heightened near unprecedented combination of simultaneous shocks and risks to the economy and the financial system, from a pandemic and war to skyrocketing inflation and speculative financial bubbles that are lowering the living standards. Of most americans, the federal reserve's stress tests continue to be too stress less. It says when all too big to fail banks pass comfortably year after year, it's little more than false comfort, misleading the american people into thinking.

There won't be more taxpayer bailouts. When future bank failures happen, they've said the fed has once again declared, as they do annually, that the banks continue to have strong capital levels, but does not identify the benchmark against which such a conclusion is drawn. It says, for example, the results of this year's test show the cumulative bank's capital ratio decreasing from 12.4 percent to 9.7 now under the original 10 minimum test. That means that all 33 banks would have failed, but because the fed's regulatory minimums have now been cut to zero.

That means that every single bank comfortably passed but better markets is also saying that the way the fed actually calculates these capital ratios has changed since biolan took office back in the trump era, this ratio calculation of 9.7 would fall an additional one point: nine percent. So down to only seven point, eight percent, which massively fails that ten percent minimum, so it's clear to see the fed, is actually lying on these stress tests and is trying to make out that these major banks are safer than they actually are. Obviously, it's easy to say that all of these banks pass when the minimum requirement to pass is to be holding zero percent of your cash, but in reality it's likely that during a financial crisis, many of these banks are going to fall. Well short of that previous 10 minimum and will most likely definitely need taxpayer bailouts, and if you didn't already know from moomoo's latest customer agreement, they state they do not sell your order flow.

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On top of that, and even reuters is saying that bank of america jp, morgan and citibank need to be upping their capital buffers and should not be making stock buybacks or be paying dividends. So again, it seems like bank of america, jp, morgan, citibank and likely credit suites as well are most at risk of failing during the coming financial crisis. It was also noted that bank of america and citibank are likely to take on heavy losses as a result of the failing leveraged loan market. It seems that both bank of america and city are likely at risk of massive massive losses and bank of america jp, morgan and citibank underperformed in the stress tests.

I think if you do have money in these three or these four banks, including credit suisse. It's definitely worth checking that all of your money is covered by sipc insurance and, if not moving cash to other financial institutions, because as mach 10 tweeted excluding 2020 and one week in 2011, 2022 has the three largest one-week rallies since 2008.. He said this week brings one of them. The biggest rallies are in bear markets, and yet pundits tell us you can't be out of the market because then you'll miss the best days.

What this chart is showing is the recent three relief rallies before the market continues to fall more and more. The last time we saw relief. Rallies was obviously back in march 2020 as the market cratered, and also back here in 2008 during the previous financial crisis. Even though we've seen some small relief rallies over the last week and over the last few months, the general trend over the last six months has been very, very bearish and, as i've stated many many times, i do expect the s p 500 to continue following this Downward trending line that i drew back here in march and april two weeks ago.

We did see the market falling quite drastically, underneath my line and therefore that's why we had the relief rally last week pushing back above the line, and i do expect over the next two to three weeks. The s p, 500 will fall back to this line and below again i do expect in the next leg of the financial crash, the s p 500, to fall to this dreaded 350 area. I think when we touch and fall below this 350 area, we could very possibly have a massive hail mary crash, all the way down to 330 or even the 300 area. I do think this 350 area is going to be massive because it marks many of the 2020 highs post pandemic and also those pre-pandemic highs as well.

I do think a number of hedge funds will be being liquidated past. This 350 area, causing a massive drop in the overall market and potentially causing the amc squeeze right here and then, as i've said, the more the market crashes. We will see more and more hedge funds being liquidated and one of these hedge funds, if not a number of these hedge funds, could be shorting amc and when they're liquidated they'll be forced to close out of their shorts buying back potentially hundreds of millions of shares And if we look at another chart from mac 10, we can see the google trends chart for the term. Recession has now spiked massively and well past those previous march 2020 highs.

There are currently twice the amount of people googling the term recession compared to back. In 2008 and around 1.5 times the amount of people googling recession now compared to the pandemic. This goes to show that more and more people are worried about the current and coming financial crisis, but as unusual tweeted, morgan stanley doesn't think, we've seen the end of the market collapse, they say the s p 500 must fall another 15 to 20 percent to price. In the current recession - and i think something that could trigger the next leg of the crash - is the collapse of tether as cryptowell tweeted.

He said, i've said it before and i'll say it again. When tether collapses, you will not be allowed to withdraw your crypto from top crypto exchanges. He said they will halt everything, prices will plunge and we will witness the largest liquidity crisis in history. Now you may say tom: surely tether isn't going to collapse, but as bitcoin archive tweeted, he said just in hedge funds have targeted tether, borrowing, hundreds of millions of dollars in loans to short usdt.

Since the terror aka luna collapse. We know that ust was attacked and hundreds of millions of dollars were borrowed to attack ust and now these same hedge funds are borrowing hundreds of millions of dollars in loans to short, usdt or tether as well. But you may say tom: surely these top crypto exchanges are absolutely fine and will be fine, even if tether collapses, but as db tweeted, he said the crypto exchange ftx is in talks to acquire a stake in crypto lender block fi. We know that recently ftx extended a bailout loan of 350 million dollars to blockfi, but now they've realized - that's not quite enough and they're having to acquire a stake in them as well.

Ftx bailed out voyager with 600 million dollars that has just taken on a significant loss due to 3ac capital. We also know ftx, has also bailed out blockfy and is having to stump up more and more cash and actually invest in them. Goldman sachs also recently reduced their price target on coinbase down from its current price of around 63 60 down to only 45, so goldman sachs is expecting coinbase to continue falling and to continue crashing and many major crypto exchanges are already requiring bailouts. It won't be long until tether collapses, crushing bitcoin below 10k, causing a number of major crypto exchanges to also end up being liquidated and end up closing down, which i think will cause the next leg of the financial crisis.

If block 5 coinbase and the entire crypto market basically collapses, this will cause a number of hedge funds that are heavily loaded up on crypto to collapse as well when these hedge funds that are heavily loaded up on crypto end up collapsing, they'll be forced to sell Off their long stocks again crashing the stock market even further, but guys be sure to. Let me know what you think down in the comments below and, as always guys be sure to ding that notification bell, because that way you'll be alerted. When i upload a new video cheers.