Warning to all investors. The fed is causing the recession on purpose and they're're ignoring the global collapse. The fed is focused on bringing down inflation at all and they don't care. If the economy collapses so guys stay tuned.

And let's make some money and i want to dive straight. In with the key information. So mach. 10.

Tweeted. Saying. Kashkari. Was co architect of the 2008 bailout now he's a member of the fomc bernie madoff division mack 10 said he's ignoring the global collapse because he wants proof inflation is coming down the cnbc article.

Is titled are we in a recession. And the fed official. Says. It doesn't matter because i'm focused on the inflation.

Data aka. The fed do not care. They are causing. The current recession.

Because they're doing all they can to bring down inflation. Even if the economy collapses as a result. Neil kashkari president of the federal reserve bank of minneapolis told cbs's face the nation that inflation poses a larger threat than a potential recession. He said.

While we are going to try and avoid a recession. We are committed to bringing inflation down and we will do whatever we need to do on thursday new labor department data showed signs of a job market cooldown with initial jobless claims hitting their highest level since mid november. Still kashkari said the labor market is very very strong now. I think that's an interesting comment.

Considering that amazon actually cut a hundred thousand employees from their workforce in a single quarter. Not in the first six months of this year. Not over the last two three four or five years. A hundred thousand employees in three months and kashkari said.

Whether we're technically in a recession or not doesn't change the fact the federal reserve still has its work to do and we are committed to doing it and crazily enough. The bureau of economic analysis reported on thursday that the country's gdp or gross domestic product shrunk for the second straight quarter. Often a warning sign accompanying economic recessions. But for kashkari that may actually be a good thing.

An economic slowdown could help reduce inflation to the point where it no longer outpaces wage growth. He even said we definitely want to see some slowing of economic growth aka kashkari actually wants this recession. But he said still the bank will do whatever is necessary to tame inflation and as i said amazon. One of the largest tech employers in the world has revealed that it's now hiring at the slowest pace since 2019.

And it's cut over a hundred thousand employees globally in the june quarter likely due to the dramatic economic slowdown since 2021. It's the largest workforce cut in a single quarter in the history of the company the layoffs are part of an increasing trend on protecting the bottom line within the tech industry. But again it's not just amazon. What jaguar has tweeted.

Saying just then the binance ceo. Did actually deny claims that the exchange lost 90 of its users. After implementing kyc. As many users on twitter.

Commented. The fact. The ceo actually had to deny the exchange lost 90 of its customers clearly shows they lost a very large portion of their customers. Whether it's 70 percent 80 or 90.

I don't know but it's obviously very very large as a morton gme tweeted. He said so they did lose 90 of their users got it with giant crypto exchanges like binance like fdx like coinbase losing massive portions of their customer base. They're obviously losing massive portions of their inflow and their revenue and they're likely going to end up experiencing liquidity issues. This is obviously something i've spoken about for a while now we've seen a number of other exchanges experiencing these same liquidity issues and shutting down effectively stealing their customer funds.

If binance ends up going down on top of it after losing 90 percent of their users that could effectively potentially destroy the crypto industry as hoss tweeted. He said. The s p 500 is down roughly 20 from the top and he thinks another leg down should begin in the full or should begin in august leading to another 50 decline. He said.

The next leg down will be a waterfall sell off and he says it will wipe out the majority of market participants okay it will wipe out tons of these hedge funds tons of these institutions a number of large banks. But most importantly the majority of these over leveraged over exposed funds obviously. These hedge funds that are the highest leverage. The most overexposed and taking on the most risk are most at risk of going under during the coming collapse.

Obviously if the s p 500. Takes another 50 percent decline or even only another 20 decline. It will still wipe out billions if not trillions of dollars from the industry effectively causing tons of hedge funds to go under and obviously as more hedge funds end up going under they'll be forced to sell off their long positions amplifying. The market crash and forced to cover any and all short positions and interestingly.

Enough. Peter han. Tweeted. Saying at two bank of america and quoted.

Saying. The cfo of citigroup. Noted on an investor conference call that the bank is requiring some of its least profitable trading clients to post more collateral and is even dropping some of them to help boost returns in its markets business aka. These hedge funds that are the most over leveraged and that are taking on the majority of losses or are the least profitable are actually now being required to post more collateral as these hedge funds are stuck taking larger and larger risks obviously.

These major banks. Don't want to end up. With liquidity issues as a result so they're asking more banks. And more hedge funds and more institutions to post more collateral.

But obviously for these hedge funds that are overexposed are over leveraged and are stuck. This is very very difficult as they have the majority of their cash or all of their cash already invested into these positions and don't have cash available to post this collateral and this is important because it says consequently banks have less gaap or gaap capital than normal and the biggest banks also have less regulatory capital. Too citigroup isn't just requiring their hedge fund clients to post more collateral for city groups benefit to help avoid their liquidity issues they're actually doing it because citigroup have regulatory collateral requirements of their own to me as well citigroup don't want to be stumping up all of their own collateral to meet these regulatory requirements. When the regulatory requirements are being increased as a result of these risky hedge funds.

Therefore citigroup are effectively trying to act. As the middleman. Just making sure. These hedge funds post more collateral so citigroup themselves can meet their requirements.

But as i said. It's problematic because a number of these hedge funds don't have the cash on hand to meet these collateral calls because it's all invested and it's all stuck. But it's not just the stock market that's feeling the pinch. It's also the housing market as well the average ape tweeted.

Saying. The housing market is feeling. It. The stock market will also fill this maybe not right now.

But soon enough as the average apes fun fact of the day. Us foreclosures are currently up 219 in the first six months of 2022 between 2006. And 2007 while the housing market bubble was popping. They were up 225 therefore us foreclosures are rocketing to new recent highs and could soon be seen at the same highs.

We saw back in 2006 and 2007 new home sales are down inventory is flooding onto the market and foreclosures are up as people simply can't afford their mortgages as a result of these rising rates people that have recently sold their homes. Where they had locked in a 30 year fixed rate mortgage. Have now locked in a new 30 year fixed rate mortgage. But a significantly higher interest rate.

And with unemployment starting to rise such as amazon cutting a hundred thousand jobs in a single quarter. People are starting to lose their employment losing their form of income and are now obviously struggling to pay their mortgages and again this isn't just happening in the us. This is also happening in australia. As well wall street.

Silver tweeted. Saying. The housing bubble is popping in australia. This.

Article. From abc. News says australian house prices fall at the fastest rate since the 2008 financial crisis. So in australia home prices are already falling at the same rate as the 2008 financial crisis and in the us home prices are also starting to fall as well it says house prices in australia are dropping at the fastest pace since the global financial crisis and market conditions are likely to worsen as interest rates continue to rise just the same as in the us.

Economists are predicting that australian house prices could fall between 12 and 20 percent over the next few months and interestingly the median property value dropped by only 85 in australia during the great financial crisis. Therefore australia is currently expecting a real estate crash twice as large as it was back in 2008. And mac. 10.

Tweeted. Saying herein lies the problem. He said during the last housing bubble consumer sentiment began to diverge from rising home prices then when prices tanked consumer sentiment collapsed and he said right now bulls. Believe that consumer sentiment will improve when home prices collapse this time around we can see back in 2007.

Home prices were rising. But consumer sentiment was somewhat stagnating as prices collapsed consumer sentiment collapsed as well but right now in 2022. We have consumer sentiment. Collapsing while home prices are increasing.

But as home prices begin to collapse right now in 2022. That's when consumer sentiment will begin to improve again this is likely to create incredible opportunity not only in the stock market. But in the property market as well. 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.