While so much has happened over the last few days, can the Fed save them all?
Because people are starting to lose faith in banks. It happened in 2008. It's happening again, and it happened before 2082. I don't want to say. It's just like the only bank closures happened 2000. No, it happened before. But 2008 was the prime example of of basically everything going under and everything had to be bailed out, right? And that's what.
Seems like it's going to happen. the US government moves to stop potential banking crisis. So they started with SVB Bank first. Obviously I covered this morning, right, a lot of banks in trouble right now, OK and I will get to the whole list, but SV bank was the biggest that they needed to resolve right away. So the Fed, FDIC and the Treasury all came together and said OK, we will bail. Them out. I don't care what anyone says. There's some people that's already on. No, it's not a bill. No, it's for sure a bailout. OK, so even people that are not insured, you know, FDIC insurance goes up to 250,000, even people that have more or companies that have more, they are all able to withdraw, OK, now. Why is this a bailout? Because basically whatever that isn't there, whatever that SBSV bank lost. They will basically get bailed out. The Treasury Department is. There was something in here about the Treasury Department is issuing U to $25 billion, OK, towards this new Fed lending program, which they call a Fed facility, right. And basically you could borrow. By actually putting down your bonds as collateral, right? And that in itself is really screwed up. The US government doesn't have any money, right? How could they lend out money that they borrowed in the 1st place from companies and now they're lending them back to them? It doesn't actually make a whole lot of sense, but basically everyone decided, you know what, you can't let us be bank fail. They're just too big. And I said that right? I'm like there's just no way they're gonna bail them out. President Biden also did a very quick 5 minute press conference and said hey. We will do whatever needed to save our banks. We need to reassure to the American people that banks are safe and you could keep your money there. And then he storms off without taking any questions. So bottom line is this. We went through a 2008 moment. We don't want to go through another 2008 moment. So it's not just a fed that's doing a lot of bailouts these days. The National Bank of Switzerland, Swiss national Banks confirms it will provide massive liquidity to. Cries Swiss, $54 billion to be exact. Right? We we, we know, we've been hearing about Credit Suisse having problems, a lot of bad investments over the past few years. Lost 10s of billions of dollars lost consumer confidence. Its stock is tanking. Yet despite all that, they are deemed just too big to fail at this point. So the central Bank of Switzerland decided to give them a huge cash injection now if they run through that. 34 billion injection. I don't know if they're going to get another one. That is quite a large bailout, right? You ECB just decided to raise rates by 50 basis points. So this is the other thing that's happening this morning that's causing. Banks to collapse. Basically a lot of a lot of European banks. Their stocks are getting hammered because of this. I mean, this is to be expected, OK? The ECB. They have been really, really behind with their rate hikes nowhere close. To what Fed Powell has done. So obviously they need to continue going. They can't stop like Powell, they can't slow down. Before I move on, I want to talk about privacy really quick. Are you concerned about your Internet activity being monitored or are you concerned that central exchanges are tracking your location through your IP? If so, and you want to keep your activity and location private, then check out Nord VPN. Nord VPN helps protect your online privacy. Security through their virtual private network spread across the world. Using Nord VPN you can hide your IP address, encrypted Internet connection, shielding your digital life from prying eyes like Internet service providers, network administrators, crypto exchanges and even from the government. 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They got a huge injection and alone. And I think JP Morgan also gave him a loan. I mean, there was a lot of stuff that was thrown at them, right? But people are still distrusting of banks. Where's the money coming from again? Out of thin air. So now it's being reported that this emergency Fed facility program, this new loan program for the banks, could cost. The US another $2 trillion, not just a few billion billions means nothing these days. Not just 10 billion. Not just 100 billion.