Welcome back to the channel everyone today i want to talk about the sec finishing their investigation into amc and gamestop. I also want to talk about how evergrande is actually going to impact the us. And finally, i want to talk about a potential wells. Fargo breakup so stay tuned and let's make some money, but before i dive into the video, i just want to give a massive shout out to the 4 700 of you that have currently ding that notification bell, because you guys are always the first to watch a New video, as soon as it's released so guys be sure to drop a like down below subscribe to the channel and ding that notification bell, if you haven't already so that you don't miss another video.

Just like this one and just a quick one before i dive in with the key information, i'm actually wearing one of my new space ape hoodies, which is listed down in the description below on my website. If you want to pick one up as well - and i want to dive straight in with the key information so gary ginsler says the gamestop report - we are pretty close, i would assume it will be out shortly. I can't wait to see this report. I had talked about doing a report sometime this summer and putting a report on out.

If i'm, if i remember correctly um, can you talk a little bit about where you are and and and your concerns with gamification and how it impacts investors so uh three things. One on the the gamestop report - uh, we are pretty close, it's in front of my fellow commissioners, and i would assume it will be out shortly on uh the uh. Unfortunately, that's what the recording shows, but it is good news that gary's got that report ready to go now. I also wanted to talk about how potentially evergrande could be ground zero for the crash.

The thing that kicks it all off people fail to understand how much exposure, blackrock and vanguard have on evergrande, not to mention all the major banks in china also have a lot of money, letting out to have grande as well. Now one can only imagine what damage that will do to the major banks balance sheets. Will they turn to china's businesses for more cash, or will they turn to what investments they already have in europe and america selling off those investments for more cash? That will have a domino effect. I can almost 100 percent guarantee it ps to the people that still think that z will bail out eva grande, think about this.

If he didn't bail them out at the first red flag and actually denied the additional lending, why will he bail them out when they're at the point of no return, it makes zero sense? What makes sense to me is that z is seeing how much european and american companies are exposed to evergrande. The only logical solution to burn the western world is to let eva grande fail. If we go over to fintel and filter for three three three: three, which is evergrande and then we look at the ownership and we scroll down to see who owns the most shares in evergrande. Well, it's a vanguard, emerging markets, index fund and then we've also got another vanguard fund, a blackrock fund, another blackrock fund, another vanguard, blackrock schwab, vanguard and blackrock, and the list goes on right now.

That only equates to 56 million dollars, 51 million, 25 million, 21 million and so on, but don't forget. The evergrande stock has already fallen about 90 from its high, so that was 560 million, but a few weeks ago, therefore, we actually can see that vanguard and blackrock have massive massive exposure to evergrande or did before they just lost 90 percent of their investment. Adam cochrane also has some opinions on why you should care about evergrande as well. On september 15 2008, the lehman brothers collapsed, dissolving 600 billion dollars in u.s assets, leading the us to the worst market crash since the great depression, 600 billion dollars in assets right now, evergrande has 200 billion dollars in assets and 300 billion dollars in unserviced debt.

So 500 billion total. So it's entirely on the same level as the assets that lehman brothers had. But lehman brothers was a u.s bank broadly diversified across many industries they lent to customers. They went to businesses, they had assets themselves in stockholdings they had mortgage-backed securities.

They were widely spread, but evergrande is not. Evergrande is in one industry, and only one industry and its debt is held by banks across china, the us, canada, uk, australia and others, and predominantly in the us as well. This also comes at a time when markets have been on an artificial inflation-driven quantitative, easing fueled run-up, like no other. So when the hammer does drop, it will drop hard, but this will not only cause defaults on bonds, but it will mean billions of dollars, unpaid to chinese contractors and good suppliers as well, and it will mean the largest ever bulk real estate liquidation.

Ever if ever grande goes under that real estate collapse would mean the asset sheets of other real estate developers, banks and mortgage companies in china would also all crumble as the entire real estate market would crumble as well. Remember the big empty houses in the us in 2008 that times 100.. Then we have to remember that china owns 15 of all global debt. So what happens when they have an internal crisis, they're likely to start aggressively pursuing some of that external debt and trying to get that cash back in which much of it is likely with the same overseas banks and funds that also own evergrande bonds.

In the first place now there is a chance, the ccp steps in and finds a way to, bail out or unwind evergrande and with china's internal policies it does potentially seem likely, although it'd still likely be pennies on the dollar of a bailout. But if they don't, then market conditions are primed for a goddamn meltdown, we're sitting on a powder keg of weak economic involvement and yet all-time high stocks, huge inflation and disconnected markets. The question of a large correction is not a matter of if it's a matter of when and how bad that correction could be soon. It could be years from now, but it will happen the longer it takes the worse it gets, but there are unique events that can make it far far worse and the collapse of evergrande is certainly one of those events.

Those events could even make it worse or speed up the process. The shock waves will be felt in markets around the world, including in crypto as well. While we can hope that crypto one day becomes a flight from the tab, free markets right now, it's sufficiently intertwined to its movements, because don't forget there's a lot of huge banks that own very, very large volumes of crypto and therefore, if they have to liquidate those Holdings well, the price is going to drop as well speaking of which we've just got the inflation data from august. So i wanted to touch base on that back in 2008 we saw inflation rates of 4.2, 5 5.6 5.4 and then a drop off to 4.9 and then 3.7.

So far, in 2021, we've seen that 4.2 we've seen that 5 we've seen 5.4 and 5.4 again, but we haven't even seen that drop off as we're still holding at 5.3 percent. Therefore, currently, i think the u.s economy is in a very, very bad spot, we're seeing those same inflation rates that we saw in 2008, but without that drop off now. Finally, i also wanted to talk about elizabeth warren asking the fed to break up wells fargo after a regulatory hit. U.S senator elizabeth warren urged the federal reserve to force wells, fargo and company to separate its traditional banking and wall street business after the lender was handed fresh regulatory action and a 250 million dollar fine.

This month, in a letter to federal reserve chair jerome powell, warren called on the fed to revoke wells fargo status as a financial holding company. In order to affect a separation, the fed should order the company to develop a plan to ensure its customers are protected through the transition. The massachusetts democrats said every single day that wells fargo continues to maintain. These depository accounts is a day that millions of customers remain at risk of additional negligence and willful fraud.

Warren wrote the only way these customers and their bank accounts can be kept. Safe is through another institution one whose business model is not dependent on swindling customers for every last penny they can get. The fed has the power to put consumers first and it must use it. The latest order from the office of the comptroller of the currency cited deficiencies in wells, fargo's home at lending loss mitigation practices.

The steps firms take to avoid foreclosure that have prevented the bank from being able to fully and timely remediate harmed customers and that's just another bad sign. They can't even mitigate home lending losses or incited the bank holding company act, which requires that banks are well capitalized and well managed if a financial holding company falls short of these, the fed is required to give notice for the institution to correct its deficiencies. Should the bank fail to remedy those within 180 days, the fed can ask the company to divest control of any subsidiary depository institution or the bank can choose to cease to engage in activity that isn't permissible for a bank holding company. This new incident raises fresh questions about whether the company can meet the needs of its customers.

Warren said, i personally think so much of this is actually linked. I do think that evergrande is going to be ground zero and effectively cause the crash, and i think that's potentially why wells fargo are being split up because they have too much risk and too much of customers money to lose similar to how the fed should have Split up the big banks back in 2008, obviously they didn't maybe they're trying to do it now to try and somewhat minimize their losses. Guys be sure to. Let me know down in the comments below whether you're excited for the sec's full report on gamestop and also what you think of the evergrande mess.

And if it's going to impact on the us as well and also while you're down there be sure to check out my new space, ape hoodie or a space ape t-shirt or the to the moon, t-shirt or anything else on the website as well, and as always Guys, if you enjoyed this video, be sure to check out some of my others. Alternatively, subscribe to the channel and ding that notification bell, because that way, you'll be alerted. When i upload a new video cheers.