Hey, this is Tom good morning and I think it's safe to say that the banking sector is doing a lot worse than we originally thought and our original thought wasn't that good to begin with. As always, don't click nothing, don't smash nothing, don't buy nothing and let's get this show on the road. Now today's video is on the weekend because there's a lot of urgent stuff going on so I can't wait until tomorrow. So a few things are happening as we speak.

Right now it's about 9 A.M over here. By the time you see this video it's probably gonna be 11. But here's what's going on. On the one hand, in the United States we have request an official request from a number of mid-sized banks for the FDIC to come in and announce that they will backstop any downfalls.

Beyond 250 000 just like they did with Silicon Valley Bank if you're a member. When Silicon Valley Bank collapsed, the FDIC came in and eventually be beyond the 250 000 war made whole. So anybody with an account in Sdb Silicon Valley Bank got their money whether it was below or under the limit the max limit of the 250 000 per account. Now this was an isolated event and there's no guarantee that the Fed or the government or the FDIC or whomever will ever do it for any other depositors out there.

So what's been going on over the past few days and this is something that's important for you to know even though mainstream media isn't really covering, this is that money has been flowing insanely from smaller Regional Banks into the Big four. Banks As expected I Told you this is what's going to happen So as this was going on and it is going on and will continue to go on because there's absolutely no reason to be in a small Regional Bank When you can be in one of the big four where none of this can happen now as this is going on small. Regional Banks are now saying well, we don't have anything to counter here. I Mean we honestly don't really offer anything better than the Big Four, except you know, a friendly smile and somebody that knows your name and stuff like that.

That's all fine and deadly. But you know when banks are falling apart the thing going to cut it. So now they're going to the FDA Since then, guys, we need you to say that the people's money is a hundred percent safe that nothing will come of it no matter how big the account is. Now this is a mental trick.

Now what's going on here is the smaller banks are asking the FDIC to stop the bleeding because if the bleeding doesn't stop, they're going to keep losing deposits and eventually it's going to be as bad as Sdb. I Said it in my video I said Regional Banks are going to have to scramble the next few weeks. Now here's what's going on. If the FDIC makes the statement, it will probably never have to be good on that because if they make that statement, they Infuse and inject so much confidence into the market that hopefully people will not be rushing towards the big four.

Banks and the smaller Regional banks will stabilize not requiring the fed the FDC to actually help. That's the idea here. Infuse Confidence stop the bleed and actually never have to be made good on that promise. Not that they will, you know, not pay out, but I Think that they will never have to even if they make that statement now.

I Don't know if the AC will do it. They're being asked to say like for the next two years we're going to backstop everything no matter how big your account is now. I Have no idea if they'll do it or not I'm not a fortune teller, but the fact that the smaller banks are now officially asking that and making this public means that things are a lot worse than we thought and we already had a pretty poor opinion on this state of regional and smaller. Banks Now get this.

The FED also thinks that things are a lot worse than what they're telling people. They're telling you to remain calm and to stay calm. You know, calm and collected and cool and all that jazz. But in reality, over the past few days, the Federal Reserve reversed more than half of the QT that is empowered, employed and implied and took charge of I don't know whatever verb you want to use here over the past year.

So over the past year, the Federal Reserve reduced its balance sheet by 500 billion dollars. Now that balance sheet getting reduced, it's basically quantitative tightening. Money is getting sucked out of the market. Now that took a whole year.

That 500 billion reduction took a whole year because they're terrified about that. now. Over the weekend, we learned that the Federal Reserve bought back 300 billion of bonds. so they pretty much reversed half of the past Year's qut in just 48 hours.

Now that is called slamming on the gas or the brake. whatever you want to use here as if Panic just started. You don't do that unless you're terrified about the potential collapse of your banking sector. Now, obviously, that does not necessarily mean that the QT error is over.

That might be a one-off or one week or whatever that may be until the crisis, you know, subsides. But the fact of the matter is that the FED did that. And the fact is that that means fear. That means Panic.

That means that things are a lot worse than they are telling you. So, anybody with bank accounts in small Banks as we speak right now is rushing towards the big four. Banks unless the government does something to regain confidence. Now, it doesn't help that over the you know across the pond Credit Suisse Into the world of pain and the solution is actually even worse than people thought.

Now three days ago I made a video and I said as Credit Suisse stock was dropping I said the collapse of Credit Suisse is inevitable I said the government will come in and bail them out, which they did. they give them 50 billion I Also said that the government has had enough of their Shenanigans over the past 20 years. this Bank managed to get into uh, drug trafficking, corporate Espionage multiple tax evasion schemes supporting the Yakuza helping Iran circumvent sanctions, supporting totalitarian regimes in Nigeria and all sorts of places I'm just, you know, spitballing it. There's a lot, lots more there.

It's insane. The amount of cloudery that went on in Credit Suisse over the past 20 years is mind-blowing and the culmination of it all. The peak of it all was the actual 5.5 billion they lost in 2021 to the famous Archangos. Capital Scandal So this bank and ask any Swiss person you know there's not one single person in Switzerland that wants to see credits who has survive this.

They want this thing gone. It's a disgrace. It's an evil bank that has done nothing but evil and things up for its investors for 20 years. Swiss People hate credit Swiss Now the Swiss government is the long arm of the Swiss people and believe me when I say that nobody wants this bank to keep doing what they're doing now despite the fact that I told you I told you three days ago, I told you UBS will be forced by the Swiss government to buy this bank at Pennies on the dollar and the Swiss government will guarantee that nothing bad will happen to UBS if they take this pile of garbage and swallow it.

Told you three days ago and now it's exactly what's going on. The Swiss government is going full blast on this now. Check this out. UBS is offering one billion dollars to buy this pile of garbage.

Now the market cap of Credit Suisse is eight billion dollars. so it's 1 8 of its actual market cap. So literally Pennies on the dollar. Now this is after the Swiss government gave credit Swiss 50 billion dollars just to keep them afloat.

That happened just last week. Let's be clear. so they got an influx of 50 billion and now somebody's willing to take them on 1 8 of their price and get this. UBS is asking for government guarantees for everything and a Mac close.

Now if you're not familiar with Mac Clause it's okay. you probably have not been working lemonade, but at Mac laws pretty much says material adverse change. Basically UBS says with the 50 billion with the 1 8 price with the guarantees, we still get to walk away if there's a material adverse change. So basically they get to go walk away if the deal isn't attractive enough.

Even at this price. Now the it's not really super fair for the shareholders of Credit Suisse and I Totally understand that and that's why you heard the biggest shareholder of Credit Suisse come out and ready to say they're going to vote against this deal because you know it's basically wiping them out. They're going to wipe out the shareholders. But if you invested in Credit Suisse after everything I Just told you 20 years of corruption, tax evasions, drug trafficking, tax evasion schemes.

They actually had a scandal where they forged Clan signatures their own Clan signatures to take their money and invest in stocks without the client's knowledge I mean I can keep doing this all day after you invested money in that fine Institution What did you think is going to happen to your money I mean I'm I'm not hating on the shareholders, but I'm saying guys, you invested in this I would rather invested in Nikola than this anyways. Jokes Aside The Swiss government has had so much enough of this that they're actually going full blast USSR styling mode on this thing. The Swiss government is now passing a law. Get this to override the shareholder vote of credit twist to facilitate the sale to UPS Basically, the Swiss government is going to make this company get bought by UBS despite shareholder vote in the most commonest play of all time since 1989..

And that's okay because they had enough of this. They want to be done with this. It's an embarrassment to the Swiss government and to the Swiss people. and totally get it.

Now that's the crazy part. The idea is to get the deal done by Monday a manager. If you ever work in the morning, it's like six months to 18 months to get done. At minimum, this thing is going to get done before lunch on a Monday over the weekend.

Imagine how bad the Swiss government wants this thing gone. Now where does it leave us? Well, you know the global banking industry not in as much deep Dudu as credit sways because Credit Suisse was an absolute horror show of management. The U.S banking industry is not in the same spot as Svb because again, this was a horror management show by Svb, but in general, much like the regional banks in the US that are now having to face the ramifications of insecurity in banking system, similar things can happen in Europe and that feeds into each other. Is this kind of a 2008 banking collapse? Um, not really.

But it's a lot worse than mainstream media is telling you. As far as you know, just remain calm. It's just a minor idiosyncratic collapse. No, no, there's actually issues here, so hopefully this gets resolved soon.

Keep enjoying your weekend. Love you all. Remember, don't click nothing. Don't miss nothing.

Don't buy nothing. See you next video.