Today I Want to talk about how the U.S banking collapse is about to cause the squeeze? I Want to explain exactly what's happened to Sivb? or Silicon Valley Bank how they ended up in the current mess they're in, Why they were Hawks in the pre-market today, what's going to happen to them going forward? and most importantly, how is this Fallout going to impact the squeeze as they tuned and let's make some money? and now I Want to dive straight in with the information. So True Demon has given an excellent summary of what happened to Sivb over the last few days. He tweeted saying another bank is facing liquidity problems. Sobb just liquidated 21 billion of their assets held for sale for a billion dollar loss.

Sivb had all these assets, but interest rates were not on their side. They were paying out more in interest on their loans than they were taking in from their customers. Therefore, they've just had to sell off a massive chunk of their portfolio and they've taken on some pretty heavy losses. They tried to cover up those losses with an equity and debt raise, but obviously the market panicked.

This article says that Silicon Valley Bank wasn't well positioned for Rising interest rates leading to losses and a dilutive capital race. Other Banks also show similar red flags. It says as interest rates have risen, many banks have actually become more profitable because the spreads between what they earn on loans and Investments and what they pay for funding has widened, but there's always exceptions. Many of these banks that were giving out cheap, cheap loans but had to pay tons of money for their funding are now in really tricky positions because they've been taking on massive losses over the last year or two.

As a result, Silicon Valley Bank Stock was down 54.64 yesterday and actually closed the day down over 60 percent. But what you may not know is the Sovb was actually the 16th largest bank in the entire of the US. And as Stephanie said, this is not a joke. Something big is brewing now.

obviously this Panic was Amplified by Michael buried tweeting yesterday saying that it's possible today that we've just found our Enron. It's possible that any of those three Banks currently failing at the moment between SI Silvergate, Bank Sbny Signature Bank of New York and Sivb Silicon Valley Bank any of those three could be fraudulent. The combination of those three Banks actually manage over 500 billion dollars in customer deposits, which is actually more money than was managed by Lehman Brothers prior to their collapse. So obviously, if all three of these Banks do end up failing, we could absolutely have another Layman moment, potentially even a larger moment.

Now again, this Panic was even more Amplified today where Peter till advised companies to pull money from Silicon Valley Bank The stock was down 60 yesterday and it was down another 60 in the pre-market this morning before it was halted during pre-market trading. I Think this definitely gives the message of a bank run or a run on the bank, as many of these influential figures are steering people away from Silicon Valley Bank and actually advising companies to withdraw their money. And obviously as more and more customers withdraw their money, these losses for Silicon Valley Bank end up being Amplified And this morning Genevieve tweeted again saying good morning Everyone Silicon Valley Bank is getting worse Customers who are trying to pull millions of dollars out car. She said online banking and mobile services are showing as unavailable for some customers.

On top of that, staff have actually been told to work from home today and for the foreseeable future. He said As a result, the stock is down 60 in the pre-market and if the bank does fail, it will be the second largest banking failure in U.S History Obviously, Silicon Valley Bank on its own, isn't quite as large as Lehman Brothers, but Silicon Valley Bank combined with Signature Bank New York and Sio Silvergate Capital is actually larger than Layman Now as I just mentioned, due to the amplification of all of this Panic the Sovb stock was down 60 in the pre-market today after being down 60 yesterday as well. and as a result, the stock was halted in the pre-market and hasn't opened yet so far. Today you may be saying Tom How have these criminals holding yet another stock but this time while it's falling and not while it's squeezing? Well, it says here: the Sivb Star Core Svb Financial Group was halted on a T1 trading Hull And you may be able to see here in this small pop-up but it's very, very small text it says T1 Hull News Pending trading is halted pending the release of material news.

This is why the Sivb stock was halted in the pre-market and hasn't opened today because news is pending on the stock and therefore it's halted pending this news. Now shortly after this halt was issued, they did actually release some news. Let's go Gavin Tweeted He said all attempts by Silicon Valley Bank to raise money have failed per CNBC Also guys, be sure to join me over on Moon with a 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 and with Mumu you can also get entirely free 24 7 customer support and you can also trade around the clock with with the full extended Market hours. And as a result Silicon Valley Bank had hired advisors and is looking to sell itself again per CNBC Silicon Valley Bank Obviously released this massive new story that they can't raise additional emergency capital and they're looking to be acquired by another bank likely for pennies on the dollar. And I think this failure of a massive bank or the failure of Silicon Valley Bank specifically absolutely ties in with the mother of all Short Swedes. As AMC cheerleader tweeted, she said when Banks can't pay their customers like Sivb, it's a game of financial Jenga One wrong move and the whole system could come crashing down.

And she said the thunderstorms of the mother of all short Squeeze are rambling the market. Now obviously, we know that Sivb can't pay out their money to their customers, but obviously the massive problem that this creates is a problem of contagion which could very much collapse the entire Financial Market. As James tweeted, he said, are we about to see some silly contagion from Silvergate Capital and from Sivb? Obviously, tons of these other Banks like First Republic and Pacwest Bank Corp And obviously Spny also failed massively on this news as well as a result, it's likely we will see contagion over to other Banks and even likely to credit Suites as well as Peruvian Bull tweeted He said most people don't realize actually how crucial Silicon Valley Bank is if we're saying billions of dollars in Venture debt, untold amounts of warrants and convertible notes in early stage firms and startups. He said if Svb fails, it could be the Layman moment for the start-up World Many of these Stark companies or startup unicorns take all of their loans from Silicon Valley Bank.

Not only have they taken their loans from Silicon Valley Bank but also store their money with Silicon Valley Bank as well. And that's why the Founders Fund and other firms like Peter Thiel have also been telling their companies or advising their portfolio companies to withdraw their money. If Svb does fail, it could likely take tons of money from these startup companies with it straight into bank up. City Obviously, all of these startups failing would not only have a massive knock on the stock market, but it'd have a massive knock on these hedge funds as well.

Remember that funds like Tiger Global actually have tons of their money invested into these startup companies that haven't yet gone public with giant, giant valuations. The way that many of these hedge funds are still meeting their margin calls is because they're using massively over-inflated valuations in startup, non-public companies. And obviously, if these startup companies end up failing, their massive valuations disappear not just fall from the 10 billion to say 5 billion, but from 10 billion to zero. And Genevieve also tweeted about the unrealized losses in the FDIC balance sheet.

This article says the Federal Deposit Insurance Corporation in February reported that U.S banks unrealized losses unavailable for sale and held to maturity Securities totaled with 620 billion dollars in unrealized losses. Now that was up from only eight billion dollars a year earlier, all the way from 8 billion dollars the 620 billion in unrealized losses. So it seems this contagion is already spreading, not just from Silicon Valley Bank but to other major Banks and to start companies and importantly to hedge funds as well. Now, the reason why this is also important is because hedge funds have also increased their leverage over the last few weeks and the last few months.

That means these hedge funds are now taking even more risky Bets with increased leverage that could cause massive massive swings in their overall portfolios. It says hedge funds up there leverage, but fear directional Bets with blurred macro picture, that basically means that hedge funds are increasingly using more leverage to make wages on the stock market this year, but they remain less inclined to bet on the market Direction due to heightened macroeconomic uncertainties. Now, obviously, if any one of these hedge funds does make a largely leveraged bet or a largely increasingly leveraged pep in any direction on any specific stock and gets it wrong, it could be game over for that hedge fund. Which obviously is good news for us because the more hedge funds that end up failing, it means that the more hedge funds that have to close out of their long positions and close out of their shorts as well.

And obviously, the more hedge funds that do end up failing drags the market down into a market crash causing that AMC squeeze. But I Think the funniest part about all of this is Jim Cramer Just like with Bear Stearns actually urged investors to buy Silicon Valley Bank Saying that it was still cheap, that it has room to run, and that it's absolutely safe. This when Silicon Valley Bank was trading at over 300 per share and obviously in the pre-market this morning it was trading only 30 dollars per share. Silicon Valley Bank Dropped by 66 yesterday following concerns the bank is on the brink of collapse and it's down over 90 percent since Jim Cramer's recommendation.

Don't forget this recommendation didn't happen two or three years ago. Pretty pandemic. This recommendation only happened just one month ago. Jim Cramer Said the fears are not justified and that Silicon Valley Bank actually presents a very compelling situation.

Jim Cramer obviously gives the perfect signal of exactly the opposite of what's going to happen in the stock market, and exactly the opposite of what's going to happen to many of these stocks. 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 upload a new video. Cheers!.