Today I Want to explain how this massive 1.7 trillion dollar problem will cause the squeeze right now? Banks And hedge funds have a massive amount of unrealized losses that are also impact the insurance companies and real estate. and this is all likely to trigger the crash that causes the mother of all short squeezes. So stay tuned and let's make some money and now dive straight in with the key information. So Peruvian Baldwin Saying that Silicon Valley Bank is just an anomaly, right? right? As you can see from this chart, Silicon Valley Bank had a massive amount of unrealized losses, which grew over the years, culminating in an almost 18 billion dollar loss in late 2022 and early 2023, that ultimately led to the collapse of Silicon Valley Bank.

But if we extrapolate these unrealized losses not just across Silicon Valley Bank but across all banks, we can actually see the chart is very, very similar. Right now, these Banks had unrealized losses until recently of around 600 billion dollars, again, culminating in late 2022, early 2023. So we can see that actually, right now, the chart of unrealized gains and losses across all banks in the entire banking sector and just in Silicon Valley Bank actually look very, very similar. But new research has shown that U.S banks are actually sitting on 1.7 trillion dollars in unrealized losses not just 600 billion as was previously thought, but 1.7 trillion dollars now.

G-Man has actually pointed out something very, very interesting, which is asking why: Fortune Magazine cut off the company logo on their stock photo because it's actually a photo from Citadel Securities And he added saying that Citadel Securities and their predatory trading practices actually caused a lot of these issues. The article starts by saying that after the rapid collapse of Silicon Valley Bank and Signature Bank and Credit Suisse all in the last few weeks, the Fed and the US government and the Regulators have assured you that banks are safe. They've assured you the potential for contagion across the entire Financial system system and the entire banking system is Slim. And a new paper by researchers at the New York University on March 13th found the Silicon Valley Bank Signature Bank and Credit Suisse aren't the only banks with these issues, and they've said that U.S banks on the whole had unrealized losses of 1.7 trillion dollars at the end of 2022, and those losses were nearly already equal to Banks total Equity combined of 2.1 trillion.

So basically, the current figure for unrealized losses right now almost exceeds the entire value and the entire Equity of the total U.S banking system. Importantly, don't forget these unrealized losses. Don't move in line with the stock market. Therefore, if the stock market goes up, these unrealized losses don't go down and they don't actually reduce these unrealized losses effectively move in line with interest rates and as the FED has just hiked rates once more, these unrealized losses will be increasing again.

And on top of that, that same paper pointed out that U.S Bank assets have also lost 10 percent of their total value over the past year alone. and of the 17 trillion dollars in total U.S Bank Deposits, nearly seven trillion dollars of those deposits are currently not insured. And they've said if uninsured depositor withdrawals cause even small fire sales of assets or specific stocks, substantially more banks are at risk. And while I told Fortune that as long as people aren't all coming in at once at the same time and demanding their deposits back effectively, these Banks might be okay.

But obviously with the current bank run that's ongoing, that's exactly what's happening. As tweeted by the Cabeze letter, new Fed data shows that Banks lost a hundred billion dollars in deposits last week alone small U.S Banks lost 120 billion dollars and foreign related Banks also lost 45 billion dollars. On top of that, this is obviously leading to small Banks collapsing. It's leading to large U.S banks getting even larger and it's leading to increase fragility in the financial system.

And as Boaz tweeted a new problem or a new front in the battle opened up this week in life Insurance and he said the fundamental rationale for these insurers is because they have commercial real estate and financials exposure, even if they don't have the held to maturity issues in their accounts directly Effectively, it's causing these Life Insurance stock prices to tank and it's also causing their credit default swaps to Skyrocket as well. So it seems these insurance companies that are ensuring the banks and our insuring commercial real estate are also in trouble as well. Therefore, if more Banks collapse and the financial system ends up struggling, it will not only impact small Banks but small Banks large Banks real estate and insurance companies too. And as a prime example to show just how bad it is, the Swiss Finance Minister Kellasata said the Credit Suisse wouldn't have survived another day and could have caused a global financial crisis now.

I've seen that many of you have been asking about credit Suite releases canceled mortgage-backed Securities This notification from the Dtcc went out about a Credit Suisse membership update for their mortgage-backed Securities Division and it says the mortgage-backed Securities division announced its intent to close multiple accounts of credit Suites Now some of you may be asking saying how the hell do you just cancel mortgage-backed Securities They're not an Uber Eats order guys. be sure to join me over. I'll move with a sponsor of today's video by signing up using the link in the description below. you can currently get up to a whopping 17 free stocks you've got 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. and with Moomi you can also get free 24 7 customer support and you can also trade around a clock with full extended trading hours now. I Think the reason the Credit Suisse's accounts are being closed is because their assets have already been or are in the process of being transferred to UBS their assets, their liabilities, their mortgages, and also their toxic derivative swaps. They're all being transferred.

We know that credit Suite has gone down. We know that Credit Suisse couldn't have survived another day and therefore all of their assets and liabilities are being transferred at once all those assets and liabilities have been transferred. Why leave the accounts open? And therefore they've just closed out of all of those accounts. But the important thing to note is that these toxic derivative swaps still do exist.

They've just changed names and change hands into UBS, But it will be interesting to see if UBS needs any more hand-holding to transfer those toxic positions once again or to finally close out of them, especially if the current banking crisis does get any worse. I Imagine UBS will be forced to close out of their positions and obviously if that is the case then that does happen. It would cause the aim to squeeze. And finally, a 741 trade tweeted.

He said, since the GameStop and AMC buy buttons were removed back in January of 2021, an astounding 551 million more shares have been traded short over long. but that's just for GameStop Specifically, basically saying that since January 2021, these hedge funds have shorted the float two times over on top of what was already shorted. Back in the day, we thought the AMC float was shorted around three times over, maybe four times over, but now it seems the float may actually be shorted even six times over. It shows the shorts absolutely have been adding to and doubling down and tripling down on their short positions to obviously avoid the squeeze.

Now, I'm not exactly sure where 714 tray found this exact number from I Assume he's pulled it from the New York Stock Exchange data of long sales versus short sales or buys versus sales. Either way, an additional 551 million shares of GameStop have been sold over the last two years compared to the number of shares that have been bought. Again, it obviously just goes to show that more Shares are being sold than what currently exist for GameStop And for AMC as well. It means these hedge funds have added to their positions, they've doubled down, they've tripled down, and they've quadrupled down on not only their positions, but their risk as well, and especially at a time when these banks are sitting on 1.7 trillion dollars in unrealized losses.

Adding to their risk profile is probably not a good idea, and that's why when we do see more bank failures and we see even more Banks and hedge funds struggling, those hedge funds that are too highly leveraged will end up being liquidated. So 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!.