We gotta talk about Credit Suisse because there is a disaster happening with Credit Suisse And it's not good because Credit Suisse is a let's just say, hugely big bank and this sucker is down 25 in the pre-market right now. And uh, let me just kind of, uh, show you uh, how big uh, this sucker is because it's it's a problem. Okay first, I'm going to show you this chart of bank failures and what I want you to pay attention to is the circles. Okay, so right here you could see the Washington Mutual Bank failure Circle at 307 billion dollars of assets.

Then you have a bunch of other bank failures right here which are like insignificant like 440 banks that failed between 2009 and 2012. Nobody cares. Then over here you got some miscellaneous bank failures. You got Silicon Valley Bank and Signature Bank over here at 209 billion, 110 billion.

Okay, so those are the circles Credit Suisse my friends, is five times as big as the Signature Bank Circle. It is two and a half times as this, as big as that Silicon Valley Bank Circle and it is about 60 percent larger than that Washington Mutual failure. So in other words, a lot of people are freaking out that this banking failure from Silicon Valley Bank is basically just the start. Okay, remember this in the last week, we had three massive banking failures: Silvergate Signature Bank and Silicon Valley Bank.

Two of those were the largest bank failures since 2000, the 2008 financial crisis. They both happened within the last week. now Credit Suisse which has already been in hot water and their stock has basically been straight down like you thought. Tesla was an easy short.

There's been nothing more easy to show up than Credit Suisse over I Hate to say it, but a very, very long period of time. I Had to zoom out to the week chart. the week chart to show you on Weeble here. How bad it's been like this, right? Here is the 200 week moving average and the 200 week moving average is basically straight down.

Okay, why what is going on at Credit Suisse And could it potentially create more contagion? Well, uh, Spoiler alert. Uh yes. the Federal Reserves Buy the effing pivot facility. That's not actually what stands for, but it is.

The B FTP facility only has about 125 billion dollars of available Capital to bail out. Banks Now it's possible the FED could leverage that 5 to 10x or maybe even more kind of like they did during Covid. so that facility could be leveraged up and then there could be more money. but ultimately that's just going to be money the taxpayer has to pay back.

So anybody who's telling you that this is not a taxpayer backed bailout has no idea what actually is going on. All you have to do is follow me on Twitter at realme Kevin and you can actually see the actual treasury facility that backstops what the FED is doing. And guess where that treasury facility gets money from taxpayers via Congressional Appropriations Okay, yes, technically. right now, it's not a taxpayer bill out, but it's backed up by taxpayers anyway.

So if it gets worse, taxpayers, something goes wrong. taxpayers. The taxpayers are guaranteeing the bailout basically. But anyway, what's going on with Credit Suisse Credit Suisse is a Swiss bank with 578 billion dollars in Assets.

In other words, it's a too big to fail bank and the sucker is failing. It is facing a crisis, as the largest shareholder of Credit Suisse has just ruled out assisting the bank any further. The bank's one-year credit default swaps are now trading near us like an insane level of a thousand basis points. That's insane.

Go into a little bit more on that in just a moment. But basically the largest shareholder announced they can't provide any more financial support and now the stock's down like 26 in pre-market It's probably going to crash throughout the day. It's just not good during this whole banking crisis because it's suggesting that. hey, we thought the banking crisis was over.

But wait a minute. There's a big dog in the room that could actually still be on the brink of failing. They were failing before Silicon Valley Bank and they're still failing afterwards. And they're like two and a half times as big as Silicon Valley Bank now.

Uh, this development comes obviously after a ton of the financial scandals that a Credit Suisse has been associated with, including a Greens Hill Capital and Arcados Capital Management. Remember our Kagos complete disaster. That was like one of the biggest uh uh, failures of basically something. It has somebody having about a billion dollars in assets being able to YOLO yeat them up to like 20 billion dollars in assets and then lose everything.

Yeah, how to go from 20 billionaire to bankrupt really fast? Anyway, that was a disaster. A Credit Suisse was associated with that heavily. But anyway, it's important to note that in November of 2022, Credit Suisse issued 46.2 million shares to existing shareholders, raising about four billion dollars in capital to try to strengthen their Capital position that was extremely dilutive to shareholders. Right now, the stock only has about a 10 billion dollar market cap left back in November which was, uh, about five-ish Months ago, it had about a 20 billion dollar market cap, so you basically diluted shareholders by around 25.

However, the current refusal to add additional assistance is starting to make people wonder if this bank is ever going to recover. It's kind of like when a Founder puts money into a startup and uh, you know people are like, oh, that's a good sign. like they really believe in the startup right like me. I have a housing startup and I'm literally like risking my entire net worth on this startup.

Like if this startup fails, uh, you know I could go bankrupt and then it's just like wow. Okay, yeah, you're putting a lot of faith on that startup. So I need to make that sucker work right? But like if a Founder stops supporting their startup or like a biggest shareholder stops putting money in you kind of make you kind of start scratching your head. like have they hit that point where they're like this is a sunk cost Uh, we cannot be a victim of the sunk cost fallacy.

The sun cost fallacy is the principle of we've put X dollars in but we should not like some. The sun cost fallacy is basically well, we already put so much money in. well let's just put in more because you know if we stop putting money in, we're basically walking away from our investment and that's kind of what's happening. Now they're stopping putting money in.

it's it's anyway. I Won't go with any more analogies. I Think you understand the Sun cause fallacy. So anyway now the crisis of Credit Suisse Because the Swiss bank is having a ripple effect on the European financial sector, shares of banks have like plummeted to Fresh record lows, contributing to a broader disaster in the European Bank stock.

ETS The ongoing like struggles basically at Credit Suisse are heightening instability around the entire Financial system in the United States not only leading the stock market and bond market rather now to price in one basis. I'm sorry 100 basis points or a full one percent cut in interest rates by the end of the year. But they're also starting to make people wonder: is this 2008 all over again? Michael Burry made us basically seem, made. This seem like yes.

Michael Burry's like uh, Silicon Valley Bank is just the tip of the iceberg. But everything is rhyming like 2008 and 2000. Uh, like 2000 did the.com bubble and this isn't good. This potentially is setting up for another banking financial crisis and that's kind of being seen at least for Credit Suisse in the pricing of their credit default swaps.

Okay, now Cds's credit default swaps. They're basically a financial instrument that work like an insurance policy. It's kind of like an option, but a little different. It's basically a contract where one party pays a premium to another in exchange for protection against the risk of a specific credit event happening like a default.

If the specific event occurs, the party providing the protection pays out the other party. It's a hedge. It's kind of like an option contract. Okay, uh, now in the case, Uh, but they're They're not as regulated And this is why we kind of had the 2008 financial crisis.

because they're kind of Arcane and not as regulated. Uh, they're derivatives. Okay, but so are options. They're derivatives.

But anyway, in the case of Credit Suisse a one-year credit default swap is now sitting at a thousand Basis Points Bips. Which means it basically costs a million dollars to ensure against 10 million dollars worth of the bank's debt defaulting. That's insane. It's a massive premium for a credit default Swap and it shows how expensive it is getting to protect against This Disaster because as the disaster gets more and more real, the more expensive it gets.

So basically the bond market and the credit default swap Market is telling you we screwed and the Ripple effects of potentially Credit Suisse failing would be probably two and a half times as big as the failure of Silicon Valley Bank. Not only that, but remember when we had Silicon Valley Bank Fears Everybody basically flocked to JP Morgan and Bank of America Bank of America is bragging about how they just got 15 billion dollars of inflows. That's a lot of money in inflows, right? Well, if Credit Suisse goes down, it's gonna be even worse because that's like that's one that's nearly one of the top eight. Banks That's insane.

It's it's a huge bank. So anyway, uh, this is a a sparking discussions about disclosure requirements over recent reporting weaknesses. They're actually literally disclosure week. Like they just disclosed that they lack confidence in some of their prior financial reporting.

That's like the last thing you want to tell your shareholders. And so Credit Suisse is trying to deal with not only uh, poorly reported Financial uh uh, disclosures, a following stock price, their largest shareholder who doesn't want to bail them out anymore, but also their exposure to a lot of high-risk businesses. Which is bad because if a lot of your loans are to high-risk businesses during a financial crisis, well things could get worse as basically people default on those higher risk loans which is really bad. So in other words, long story short, Credit Suisse is sucking.

It's been the easiest short for the last years. It's basically going straight down and the best thing that you could do is join the programs on building your wealth link down below. Uh I'm I I can't advise being being short these because I can't give you personal financial advice. But I mean if you just I mean look at this.

This chart goes: This is the 200 week moving average going back to 2017. dude, it's straight down. I Certainly certainly since 2021, it's been straight down. I mean go to the day chart.

This is the 200-day moving average. Now this is just sad. it's just trending to zero and it's going to a buck 80 in pre-market down about uh 28 right now. So even though we had good PPI uh numbers and retail sales numbers uh, this morning, the market probably is moving down on fears of financial contagion largely in part due to what's going on with Credit Suisse So that gives you the latest on Credit Suisse What's going on there? Check out the linkos down below.