In this short clip, Patrick Bet-David, Michael Malice, Adam Sosnick and Tom Ellsworth react to 34 banks being at risk of failure.
FaceTime or Ask Patrick any questions on
Watch the full podcast here:
Subscribe to our channel:
To reach the Valuetainment team, you can email:
Tom give us an update on what's going on With Silicon Valley and Credit Suisse Because a bunch of uh a bunch of stuff Came out just yesterday you saw their Stock at the beginning the Dow was down 600 and then it ended up with a couple Hundred down what's going on with the Markets right now well speaking of Utopia [Laughter] No uh overnight overnight it's very Interesting this can be summed up in one Chart do you have the chart that came From Apollo So this very interesting chart that Comes out assessing the balance sheet Risk of the banks yeah can you pop that Up a little And the arrow up there that's uh toward The left side is pointing to Silicon Valley Bank everything to the right of Silicon Valley Bank is actually more Risky and slightly worse off than the Silicon Valley Bank oh my God balance Sheet was and then if you go all the way To the left you've got at a score of 15 JP Morgan showing strength prudence and You know probably you know the Utopia Banking experience sir because it's Risky so what overnight has happened is That there is the realization that there Is a lot of risk at a lot of banks That's happened overnight Um right before the market closed First
Republic remember they said that was the Other bank everybody was concerned about It has been downgraded and officially Given the rating as junk and Moody's Came out and said you're not pinning This on us we're just going to say the Whole sector is downgraded and they Downgraded the entire sector to like This questionable status and so right Now literally Pat what we are waiting For we are waiting for the markets to Show us Market response to the stocks of The public Banks and waiting for the Other shoe to drop because it's not just New York and it's not just SVP and it's Not just First Republic It's Credit Suisse yesterday morning coming out Saying with a stock price of 2.44 so They're down the street from being Delisted I mean they're not far away I Think it's 90 cents for so many days and Something they would be you know put on A suspension and then ultimately Delisted so what's going on is there's a Huge amount of uncertainty Pat and There's big amount of a certainty that No one can have an opinion on can I show You a poll real fast of course about What is the Fed gonna do in the face of All this madness and I put a poll on Twitter yesterday so here's 326 votes do You think and I asked a very just Sensible straightforward question okay Consumer Price Index those inflation is
About six six and a half for the year Still a problem and with the svb Collapse what do you think Jerome Powell Will do with interest rates when he Announces them next week on the 21st 22nd half a point as expected 20 a Quarter point and be a little more Gentle or zero and then revisit it on May 2nd which is the next scheduled Official meeting of the Fed Look how close it was 41 said he's gonna You know just do a quarter point and 32 Percent said a half a point 26 percent For most of the life of the poll and This is 326 votes and these are public People not a bunch of banking industry Folks you know it it stayed pretty even Which means everybody actually wasn't Very sure so we're gonna find out Um next week and we're watching and Waiting each day along with getting more Realization Pat that a lot of banks have Very weak balance sheets right now and There's a lot of turmoil in the sector But by the way when's the last time Moody's downgraded an entire sector the Way they just yeah specifically crazy Right no and I'm not exactly that is What they did yesterday before the Market closed they said okay we're Downgrading the sector when's the last Time is that a have you heard of that Before was it like a because it's 9 11 Wasn't a sector like it wasn't like you
Know 911 was So it makes you it makes you think yes That I'm talking to the folks at Morgan Stanley I'm like so what's going on he Says look you can raise 450 bibs in 12 Months and not expect these Banks to go Through what they're going through right Now so but here's here's the question The question becomes the following okay Janet Yellen you guys build out those You know however many people at Silicon Valley Bank with above a quarter million Dollars FDIC so we're not bailing out to Uh uh uh Silicon Valley Bank we're Bailing out the uh the passators is what We're doing okay fine no problem fail Can I get sold but we're helping the People okay no problem great How many more can you handle One more right five more it's dominoes 10 more 20 more like you know you know I Had a friend of mine he started making He was a the top interior designer in Hollywood he was making 1.6 every year And I'm his advisor he's sitting with me I'm doing a needs analysis I said so tell me uh your expenses um How much you have in savings I I gotta Run 500 000 okay how much you have in 401K zero how much you have in stocks Zero you only have a half a million Dollars yes how long you been making a Million and a half about a decade I said what's your mortgage payment
Mortgage payments 15 grand amount okay What's your car payment I got that SL 500 two thousand dollars Okay great yeah where's the money going Where's the money going so watch what he Says he says I give my mom 10 grand a Month I give my dad 10 grand a month and My mom asked me to help this sister out My auntie I give her eight grand a month And I give my dad's brother now eight Grand a month he was given his family Forty thousand dollars every month you Know what ended up happening eventually The government failed well a wait Happens Once a way took place they're no longer He's no longer he goes from 1.6 to 200 Grand a year okay yeah there's no more Interiors to design it so I'm like so What do you do when the houses are done He's the government and he fails he had To make four phone calls what are those Four phone calls his mom his dad the Sister the brother and all that he was The most hated man in the family I can't Believe you're doing this I'm 80 years Old here's a problem you can make one Company happy Silicon Valley Bank you Can make two signature maybe three dude You can if this hits the fan and 20 Banks smaller than Silicon Valley Bank That secretly are sitting here saying Don't expose us and on top of that they Have a target of money being pulled out
How much did B if they just get be a Vacant 19 billion dollars teen billion Dollars in Silicon Valley Bank fails JP Morgan says claims they got two million Two billion dollars how many more Banks After seeing something like this are Saying babe let's take our money out if This thing goes next level Right it's going to be a a scary scary Side Janet Yellen and Biden can see Noble doing this with these guys very Soon they're gonna have to say no to Somebody and it's gonna hurt and the Rich will just get richer with these big Bangs you're all just going to go to Wells they're going to go to the city They're gonna go to Chase they're going To Bank of America the interior is going To be four big banks at that point the Interior designer should have just made One phone call and then blamed it on That one person just it's mom's fault That I can't pay the rest of you no it's The wife you gotta say yeah honestly my Wife wants to leave me downgrading an Entire sector I mean my brother and Sister and I get out of hand my mom got Moody and downgraded all of us but I've Never seen Moody's downgrade an entire Industrial section it's going to be in The Super Chat and tell us and by the Way if you know it put it in the Super Chat and let us know because I honestly Don't recall there's the problem of
Perception become reality right if There's less of a belief that these Banks are stable that's going to Encourage more and more people to have a Run and then it becomes this kind of Dominance that's even worse that's even Worse and that was the Run they tried to Prevent you're you're correct they try To they they wanted to prevent Anarchy From happening and so what they said the Government usually does we're going to Protect we're going to pick the Depositors so please don't run on the Banks yeah so it's like they took 25 Billion out there to prevent a trillion And then it just becomes what a Self-fulfilling prophecy where it's just Like no this is happening and then I'm Glad my money's in crypto yeah that's Where I've got well for the last year Not 100 but yeah but you can't be Serious Michael malice but even glad Your money's encrypted I am right now of Course I am yeah right now yeah over the Last year where it's gone down 70 I I Bought low kept it I hoddled it then it Went down it's still there I'm not gonna Sell it when it goes down I will tell You I will tell you and I'm not a pro Bitcoin or an anti-bitcoin guide like I'm not uh uh you know during the entire Hey can you do a sponsorship for FTX We've never done it because I'm not That's not my world so we've never taken
A sponsorship from a lot any crypto guys And we've got a lot of uh requests kind Of like how you say I'm not educated Enough on the Ukraine to give it I'm not A crypto guy to say hey here's what We're doing with this but I will tell You this if I am a Bitcoin guy Your argument right now is getting Stronger okay that's why Bitcoin went up 20 in a day went from 20 to 24 000 the Other day this is a very good time for The pro Bitcoin folks to be selling what They're selling there is a the only Challenge they have right now is the Following is uh my concern has always Been we've had Michael Sayler on a few Times and we've had a bunch of these Guys my only concerns always been that Uh these guys gonna want to regulate so The whole cbdc they come out there try To regulate the crypto Community what That's going to look like and they're Going to use this crisis To say You know what if this happens to crypto What if this happens to this they're Going to figure out a way to regulate That if they don't I think Bitcoin is a good place to be if They don't get their hands on it but Again we'll see what's gonna happen There all the D5 guys are out there Saying see told you yeah no by the way Exactly how you should they should they
Should say it this is a time to say your Argument if gold pops Peter Schiff Should come out and say I told you so I Told you so right it should it should be Able to my big concern is that at some Point maybe you're right that they're Gonna have to be like all right we gotta Stop the contagion bail it out and then You have to get inflationary as a Consequence that's on top of the Inflation that's already happened and What that ends up screwing over is the Poorest of the poor uh so that is really My concern here so if you like this clip And you want to watch another one click Right here and if you want to watch the Entire podcast click right here Foreign
