Good morning Mother Lovers and we have to talk about the credit Twist bailout. So after we saw the American version of the not bailout bailout this time, it's Europe's turn to bail out a failing bank without having to call it a bailout. So we're talking about Credit Suisse. So is the Credit Suisse crisis now over? Let's talk about it now.

Look, truth be told, credit Swiss was a bad bank for years. Every Swiss friend I have hates that bank like it was Darth Vader from Star Wars and some of them actually work for credit Swiss So you can make up your own mind and conclusions about this bank. But here's a quick executive summary of their Shenanigans recently working with a Nigerian dictator check: laundering money for the exclusive check helping Iranians Bridge Financial sanctions check, participating in a tax division scheme in Germany check and another little tax evasion scheme in the US check and just three years later, another one in Italy just two years after that and then they got fined for money laundering in the US and Singapore got into another tax evasion scheme in Europe forged client signatures to take their money and bet it on stocks without clients knowledge. Shout out to Sam Bankman freed.

Then they got into a quick corruption scheme in Hong Kong a bit of corporate Espionage after that, some small small drug trafficking Adventure in Bulgaria And of course they lost a 5.5 billion dollars in the Archanges Capital scandal in 2021 and eventually losing 7.3 billion dollars in 2022, which is pretty much everything they made for a decade. So you must be wondering: how are they still around I Have no idea. don't look at me. So after the latest Scandal which included their own Auditors PWC Pricewaterhousecoopers basically saying their financials are dog and they can't be trusted.

It's great when your auditor says it about you as a public company as a bank after their biggest investors Harris sell out of the stock completely after the second biggest investor who's now the biggest investor says he isn't putting a single dollar to help these guys. and after outflows of a hundred billion dollars in three months along with an annual loss of 7.3 billion in 2022 which evaporated the profits of the bank in the prior 10 years, then we got this. yesterday. we saw credit Swiss ready to come apart at the seems like a chip cushion.

But like always these mother lovers who somehow they made it out alive again this morning this Swiss National Bank said it would provide a 50 billion Franc loan to Credit Suisse to save their ass from going under. Now the Saudi National Bank that same largest shareholder. That said yesterday, they aren't spending a single dollar to save credit Swiss is now saying that there's nothing to panic about, which is what always relaxes people, right? Nothing more relaxing than hearing someone scream Don't Panic On top of that, the Swiss National Bank and the Swiss equivalent of the SEC made sure to put out a press release to assure that Credit Suisse had no trouble to meet Capital requirements and that the U.S banking crisis does not pose was a risk of contagion to any Swiss banks at all. That actually made me more nervous since it's like your kid coming up to you and saying Hey Dad I didn't steal the chocolate from the pantry earlier I Mean come on dude.

Now in all seriousness, this is actually very similar to what the US did with First Republic Bank by providing it with a 70 billion dollar credit facility to prevent it from collapsing essentially holding it on life support so we don't have another Svb and Signature Bank So the question is how much did this? 50 billion? but for Credit Suisse Well, is this going to be a Band-Aid or this will actually help credit Swiss to get it act together. Now to be fair, the last time this Swiss government did this was in 2008 and it worked. They gave 60 billion dollars to UBS and in that case UBS got their together. But then again, as you understand from the output to this video, Credit Suisse is not UBS.

So the truly scary part here is that as the Credit Suisse crisis was playing out, Jim Cramer apparently was on TV playing with his little buttons saying that the next week is going to be fantastic for your portfolio. Which means we're all pretty much screwed and talking about this function as this was happening Kathy Wood came back from the freezer. apparently you know, as people were taking money from Regional Banks Hair Fund actually got a piece of it. She got 397 million in money going in Arc which is the biggest one day inflow she saw in two years.

So what's going on here? Well look here's the reality of it. Here's the executive summary: A bank that lost 143 Million last year which is its biggest loss in history which is the Swiss National Bank is rescuing a bank that lost 7 billion last year which is everything it made in the past 10 years which is credit Swiss You know, talk about the blind leading the blind, but I do have to give credit to the Europeans on how they handle this situation. When you think about it, this is how a bank Grant should be handled. I'm not even joking, right? No post collapse bailouts.

Give these mother lovers a loan so they can regain liquidity and stabilize the markets. And the fear within 24 hours. And look, I Get it. Free markets should decide the fate of failing companies.

And with banks, it's not like that. it's different. Banks Actually feel a very important role in any freaking Society In an economy, we can't just let them collapse like it was just another company. Especially when they have 600 billion dollars of deposits.

you can't let it evaporate. You know that would have been the worst of all options to be honest. Now as much as I hate bankers and I do, the reality is that Banks provide a critical function in the economy and I'm not saying that this was a good thing to bail out another bank. it's simply the somewhat less worst option of them all given the circumstance.

And the question is what's next. Now you just gave 50 billion dollars to credit Swiss which was criminally mismanaged for 20 years and did every single mistake in the book, including writing some new books about how to make mistakes. So unless the Swiss government cleans the house inside that bank through possibly a sale of Credit Suisse to say, UBS Unfortunately, no likelihood crevice Swiss will probably piss away this 50 billion in like five years. so more long-term solutions would have to be employed here.

because otherwise Credit Suisse is going to it up like they always do. Not sure how excited UBS is to buy this dumpster fire of a bank, but with some support and guarantees from the government, maybe this can happen and actually save their ass. So how does this impact the U.S banking sector? Well look the the U.S Regulators have done a decent job at harming the fear, right? They've solved the problem with depositors. They let First Republic have a credit line and it seems that things have died down.

Having another bank collapse in Europe would not have helped. Having the other bank get a credit facility for 50 billion francs from their own kind of central bank. That seems to kind of calm things down. I Don't think there's a big banking collapse happening in the US I Think people who are talking about it don't understand how idiosyncratic these things are.

They're very isolated cases. Svb and Credit Suisse were just really good examples of horrible management. I Still think that the US should go back and focus on the really big problem here, which is inflation. We're still at six percent, three times the norm.

That is the biggest problem. that is the biggest concern. I Think this whole banking crisis stuff is starting to die down and hopefully we get to go back and focus on the vision very soon. Before you you guys leave, don't forget to check out stock MVP Stock Dash Mvp.com You can actually check and research stocks.

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