Today I Want to talk about how the FED is preparing for the squeeze? I Want to explain what they've just implemented to get the most money out of you during a squeeze? But before I touch on that I Want to talk about what's led the FED to make these changes and what developments we've just seen. So stay tuned and let's make some money. And now I dive straight in with the key information. So I think part of What's led the FED to make these changes is the fact that three separate banks are collapsing or on the verge of collapse This very week we've got SI or Silvergate.

We've got CS or Credit Suisse and soon spny or Signature Bank of New York Spence Tweet saying I Generally think the FED thought we'd hit a soft bottom and then suddenly all the mess was found pushed under the bed. The FED thought we were heading for this soft Landing There'd be no recession, all of these stocks would bounce back, hedge funds would generate billions, if not trillions of dollars in profits, and no fund would ever be squeezed. But it seems that all of this mess and all of these bankruptcies have simply been swept to the side and that actually, we're definitely need you for a hard landing and a recession is coming. And Spence tweeted saying that dominoes are falling and the timing actually couldn't be better.

So let's start from the top and talk about each of those three banks in order from Spencer's tweet. First up, we have Silvergate. So Silvergate Capital announced yesterday that it was winding down operations and is formerly going bankrupt. As a result, the Silvergate stock is again down to 36 percent in the start of the market trading this morning and was down as much as 50 in the pre-market hours.

In literally the last week or two alone, Silvergate has fallen from 25 per share down to sub three dollars. And what makes this comically even better timed is the fact that investment firms Citadel Securities and BlackRock recently took major stakes in Silvergate, buying up 5.5 and 7 respectively. So basically Citadel just put in 5.5 of Silvergate, which is hundreds of millions, if not potentially billions of dollars into the bank that's now just disappeared Citadel are taking on a massive loss hundreds of millions of dollars each and every day that Silvergate continues to twiddle down. Which obviously is good news for us as it means that Citadel are even closer to that dreaded Margin Call Now next up on the list we've got Credit Suisse This morning, the credit Suite stock also plunged because their annual report was delayed.

after a late night call from the SEC Credit Suisse on Thursday announced that it will delay its publication of its 2022 annual report. after a late call from the U.S Securities and Exchange Commission on Wednesday night, it says the annual report was scheduled for release on Thursday morning. back in February Credit Suisse reported a massive 2022 full year net loss of 7.3 billion Swiss Francs or 7.8 billion US dollars. They also telegraphed another substantial full year loss for this year.

but for some reason the SEC have had some complaints and changes that need to be made. Maybe Credit Suisse have actually lost more money than their perpetrating. Maybe they need to adjust some of their their financial figures. or maybe there's some wording in there the SEC wasn't happy about that needs changing.

Regardless of that, the Fat Credit Suites actually had to delay its Financial results and the fact the stock is dropping this morning. it's likely to cause even more customers to withdraw from Credit Suisse which again is obviously going to lead to further losses and likely to a substantial full year loss for 2023. Third Bank On that list is Spny or Signature Bank of New York This is actually a bank we haven't heard much of before, but seems to be in a very similar boat to Silvergate. Capital It says with a demise of Silvergate, Sbny is the only larger Bank remaining with a functional on-ramp for institutional crypto investors.

So effectively, Sbny is another bank very similar to Silvergate that could soon be falling down as well as JC tweeted he said if I was a sell side analyst, he said I'll be terrified to have a buy rating on the other purpley traded crime scene. So it seems Signature Bank is also being accused of committing fraud or committing crimes and potentially aiding and abetting overseas criminals. This again is likely going to end up with Sbny or Signature Bank potentially failing over the coming months very similarly to Silvergate and this has all led to Larry McDonald a guy that wrote a book on Layman Brothers believing the stock market will crash in the next 60 days. Also, guys, be sure to join me over on Mumu the sponsor of today's video.

using the link in the description below, you can currently get up to 17 free stocks entirely commission free trading Free Level 2 Market data and most importantly of all, MooMoo is very easy to use. They've got tons of technical indicators and advanced charting tools. They've also got Three 24 7 customer support and you can also trade around the clock with the full extended Mark hours stock sense Frank Tweeted saying the stock market will crash in the next 60 days Warns: Larry McDonald Founder of the Bear Traps Rapport and author of a best-selling book about the Lehman Brothers collapse. Now you may be saying Tom how is three failing and potentially collapsing Banks going to lead to a stock market collapse and I think it really links into this tweet from Spencer who said the FED thought we were going to have a soft Landing but actually it's seemed much more like a hard Landing as the Cabeza letter tweeted.

it now seems almost certain we're not going to have another 25, but his point hike at the next meeting Actually, they're setting sites on a 50 basis point hike. He tweets saying just in odds of a 50 basis point rate hike this month hit a new high of 75 and he said more shockingly, the odds of 250 basis point rate hikes are now 20 as well. So it seems instead of the FED flipping dovish and beginning to cut interest rates, it seems they're not only going to continue hiking, but actually even ramp up the pace of those hikes. And he said this is by far the most hawkish shift in expectations we've seen so far.

Obviously, the recent stock market rally was built on hopes of a Fed pivot towards a more dovish stance and potentially towards cutting intro rights. But now it seems that actually the FED isn't going to get dovish at all, and they're actually going to get even more hawkish and continue raising those rates. Therefore, it seems like over the next few weeks, the stock market rally will unwind and we'll be back into that bear Market territory and we will see a new stock market crash. Now if we're going to see that stock market crash.

If we're going to see these hedge funds losing billions of dollars, potentially even trillions of dollars as well, that means we're going to see an AMC squarese these hedge funds are going to lose billions of trillions and end up being liquidated and end up going bankrupt. And obviously as a result of liquidation, these hedge funds will be forced to sell off their long positions and close out of their shorts. So it seems the FED is disregarding chances of a soft landing and they're Now setting their sights on a hard Landing instead. And obviously, with that comes the AMC squeeze.

So how exactly is the Fed going to benefit? Well, as what should be retweeted, They said President Biden has just called to double capital gains tax from 20 percent to 40. Clearly, the third and President Biden are suddenly expecting tons of people to have massive taxable capital gains, and they've decided they need to up the tax rate. They're seemingly deciding. There's going to be tons of people that have all of these assets that they've held for at least a year that are going to massively increase in price generating capital gains tax and need to be sold.

And therefore, the best way for the FED to benefit is to increase the tax rate from 20 to 40 percent to tax all of those chargeable gains. But actually, this is a really interesting time to be increasing these rates. Surely, if there's going to be a giant stock market crash, that means that loads and loads of assets are going to be worth less. Therefore, there's no taxable gain.

If the stock market crashes, the property Market will likely also crash as well as for the car market. Therefore, all of these assets that people bought for an expensive price will suddenly become cheaper, generating zero gain. Unless all of a sudden, there's a group of people that have assets that rise in price during a stock market crash. Hmm I Want know what assets will go up during a crash? So obviously, when these hedge funds end up being liquidated and it causes the AMC squeeze, all of us retail investors are going to have tons of chargeable capital gains that we need to pay tax on.

On top of that, Biden's new budget also includes a new minimum tax on Wealthy individuals unrealized capital gains. So they've even decided if retail investors don't sell their shares during the squeeze, they're still going to try and tax us on our unrealized capital gains. Either way, the Fed and President Biden are expecting a group of people to make tons of money during the market crash on assets they've held for at least a year and should be taxed even more on it. While the thought of capital gains tax doubling from 20 to 40 isn't a great thing to me, it just shows the AMC squeeze is even more of a certainty and that clearly the FED are preparing to benefit from the AMC squeeze by increasing these tax rates.

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 Put a new video Cheers!.