Major banks are currently taking on heavy losses. This is only going to accelerate the current stock market crash, the current recession, and it will cause some major institutions, like bank of america, to end up going bankrupt, stay tuned and let's make some money, and now i'm gon na dive straight in with the information. So cnbc released this article that says, bank of america and citigroup have been flagged for potential losses on risky loan deals by rival, jp morgan. It says, leveraged loan funds have recently seen their steepest outflows since the depths of the pandemic back in 2020..

This means that risky companies and new tech startups that are generating little profits or taking on heavy losses, are defaulting on their loans, meaning that major banks are taking on heavy losses. He says meanwhile, jp morgan and wells fargo, who are the second and third biggest players, have only been involved in two deals where the borrower has so far defaulted. This means that bank of america citigroup and likely credit suites as well are lending to the most risky of risky companies. These three banks are taking on the heaviest of losses, even though they haven't lent out the most capital, and it says if market conditions suddenly change or continue to worsen.

The bank providing the credit line, may be forced to eat losses, to sell the debt at a deep discount or hold on to the loans in hopes the market recovers, and the financial times is saying that in terms of corporate debt, leveraged loan holders or leveraged loan Issuers are praying for a soft landing, because increased cash flows are of little use if the issuers or the borrowers end up defaulting. But unusual wells has tweeted saying that markets are dropping. As powell stated, that rate hikes may cause a recession. I also found an excellent little video or an excellent little gift here.

That perfectly explains jerome powell's soft landing. He said our goal is for a soft landing, but it's going to be very challenging. Obviously right here we can see this plane. Taking off has a little bit of an accident, it prepares for a soft landing that wasn't quite so soft the financial times article says not.

Everything in fixed income securities is as nailed down as the name leveraged corporate loans, with floating rates have been amongst the hottest debt products marketed on wall street in recent years. This is financial engineers rigged up so-called collateralized loan obligations, aka clos, aka, cdos, synthetic cdos and cdo squared, but not for the mortgage market, but for the leveraged loan market, they've bundled pools of corporate loans into slices of varying risk. Many of these loans were priced at a spread floating above a benchmark rate. It says trillions of dollars of these loans were issued well ahead of the junk bond market.

Insurers eagerly swallowed the senior ranked paper, but now these risky loans are starting to go bad. These major institutions have loaned out trillions of dollars worth of cash to these risky companies and now they're starting to default on the loans, and it says the question investors need to ask themselves. Is this, how valuable is inflation protection likely to be once they've already written off the cost of paper? That became worthless guys if you sign up to moomoo right now, using the link in the description below you can currently get 10 free stocks worth up to 25 000 in total and a guaranteed three shares of lucid. On top of that - and if you didn't already know from mumu's latest customer agreement, they state they do not accept payment for order flow, they state they do not generate profit from selling order flow.

They state they do not generate profit from lending out your securities and they state they do not sell orders to market makers like citadel because they root their trades themselves through food to incorporate it otter, tweeted saying it's officially a bailout for block fight, which begs the Question, why do they need a bailout if they didn't lose depositors, money and he said how much more will profit maxi, fdx bail them out, for if the 250 million dollars is spent? Now the financial times published this article saying crypto exchange ftx bails out the lending platform block fi the rescue prompts comparisons between chief executives, sam bankman freight and a crypto central bank. It says the fdx chief has lent out an extension of 250 million dollars to blockfi and it's led to him being likened to a lender of last resort for the crypto industry. Now you may also know that fdx bought a massive stake in voyager digital effectively. Bailing out voyager over the last few weeks as well, but unusual wells has just tweeted saying crypto broker voyager digital says it faces exposure of about 660 million dollars to troubled digital asset, hedge fund, three arrows capital.

So therefore, fdx has just bought out voyager digital and has now instantly suffered a 616 million dollar loss. Now, if block fights spend the 250 million dollar investment that fdx has just made, then fdx will be down nearly a billion dollars. In only a few weeks. Fdx seems to be propping up practically insolvent crypto companies, and it won't be long until ftx runs out of money as well, and its investments end up imploding.

I think when fdx implodes and block fire implodes and voyager digital also implode all at the same time, bitcoin will crash to below 10k per coin and coinbase will likely implode at the same time as well, and i think when bitcoin full sub 10k, because it's been Tracking the s p, 500, so accurately, the s p 500 will fall as well. All of these hedge funds have tons of money invested into crypto still, even though they've taken out tons and tons of money over the last few months, causing the crypto crash, they still have more money invested and obviously, if their crypto money gets vaporized, then their investments In the s p, 500 and in blue chip stocks will be vaporized as well and obviously, if all of these long positions in crypto and in the s p 500 end up being vaporized, it will cause more hedge funds to be liquidated, forcing them to close out Of their shorts as well, something i speculated a few videos ago was that credit suisse was holding rk gossip short positions, potentially in gamestop and in amc, and this research from dragon breath actually proves it. It says crm director of hedge funds admission that our cagos's cooperation in bringing us shorts took an 800 million dollar p l hit in credit suisse's portfolio during the gamestop short squeeze. It says the crm director of hedge funds acknowledged rk goss's cooperation in bringing us shores.

It says you'll recall they took an 800 million dollar plus p l hit in the credit suisse portfolio during the gamestop short squeeze week, credit suite said we were fortunate that we happened to be holding more than 900 million dollars in margin excess on that day. So we suffered no resulting margin call, but since then they've pretty much swept all of their excess, so they think there's a prospect or a possibility of a further 700 to 800 million dollar margin. Call that is very real if we see similar moves once again. That means the credit suite is likely still holding their shorts while still holding our k, gossip shorts on gamestop and on amc, and could see a further 700 to 800 million dollar margin.

Call if gamestop and amc run up again, a 700 to 800 million dollar margin call would mean that credit suisse would be forced to buy back. Nearly 100 million amc shares at the exact same time, credit suisse, buying about 80 million shares of amc. At the exact same time, i think would absolutely cause the short squeeze now we know that so far, these major institutions, these major hedge funds and these major banks are being kept on a thread by the fed with their money. Printing programs, like the repo market and the reverse repo market, as well and jan jacker, said if the fed totally stopped its money, printing programs of quantitative easing and the repo market wall.

Street banks such as jp morgan, goldman sachs, citibank and credit, suisse and others would go under and he said, they'd be forced to stop supplying infinite liquidity to those insolvent, hedge funds or the hedge funds that are practically insolvent and those brokers. And he said: that's exactly what we need for the entire gambling house to come falling down and speaking of which, looking at the reverse repo market we've again hit a new all-time high, a new record of 2.25 trillion dollars. Since the back end of may, we've increased from only 1.8 trillion all the way up to 2.25 trillion nearly 2.3 trillion. That's a 500 million dollar increase in the reverse repo market.

In only a few weeks and again looking at this reverse repo chart, it did increase fairly rapidly until october, but then plateaued from october until early march. But since march it's been absolutely skyrocketing. Once again, i don't think it will be long until these reverse repos hit 2.3 trillion 2.4 and 2.5 after that, but i do think there's only so much money. They can continue to print before they just lose control and, as bloomberg says, morgan stanley and goldman strategists are seeing more stock market losses.

Sg's cabra sees the s p 500 sinking an additional 30 in 70 style. Stackflation. Now it says, u.s stocks are staging a furious rally on tuesday, which was obviously yesterday, but top strategists at sg and goldman sachs, one of more declines ahead as equities have yet to fully price in the risk of the coming recession. It says a 1970 style inflation shock could send the index crashing about 30 from current levels, aka currently down 20 and falling an additional 30 morgan stanley is expecting the s p 500 to drop another 15 to 20 to around 3 000 points for the market to Fully reflect the scale of the economic contraction and he says the bear market will not be over until the recession arrives or until the risk of one is extinguished.

Basically saying the market will continue, crashing almost non-stop until recession actually arrives and effectively destroys the economy. Now, obviously, the s p 500 continuing to crash just means that these hedge funds are edging ever closer to that liquidation point and obviously, when they are liquidated, they will be forced to cover their short positions, causing the amc squeeze. And finally, i think gollum stocks has given a perfect example of what i've been trying to explain. He said who here knows what a stock tsunami is.

He said like in nature where the water gets sucked out into the bay before rushing in causing mass destruction. He said it's blue chip stocks and it's the amc shorts, covering amc when the tide and liquidations come rushing into our accounts, basically meaning the market is steadily crashing as the water slowly gets sucked out into the bay before this massive wave of liquidations happen, causing the Amc short squeeze and warren buffett also gave the perfect analogy as well saying you only learn. Who's been swimming naked when the tide goes out, basically meaning, as the market starts slowly crashing. As the tide goes out, you very quickly learn who's massively over leveraged and who ends up being liquidated first, but guys be sure to.

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