A *MASSIVE* Bank Run *JUST* Started | DO THIS NOW | The 2023 Financial Collapse.

this video could be the most important

video that you watch in finance this

year because a potential 2008 is brewing

and it just started let's just put it

this way there's a bank called Silicon

Valley Bank that is now having trouble

helping you withdraw your money that's

because they're suffering from what's

known as a bank run everybody's trying

to get their money out of small Banks

and you should too I'm not trying to

cause Panic I'm trying to prevent you

from losing access to your Capital be

very careful because there are dirty

things happening on balance sheets and

you already have panicked investors like

Bill Ackman begging the government to

bail out the banks that are not letting

people get their money out of the banks

right now that's scary because the banks

have already squandered that money

there's a reason why Silicon Valley Bank

dropped 45 in one day and even though

the stock is suspended right now is

likely to end today down another 50

percent this is despite the fact that

people like Jim Cramer told us

everything is fine at Silicon Valley

Bank this company is a merchant bank

with a deposit base That Wall Street had

been stately concerned about SUV's on

Silicon Valley Bank recently bought one

of our favorite research firms Buffett

Nathanson it's become less dependent

upon private equity and venture

capitalist offerings wait a second let's

try to play sure they could come back

yeah some of them come back here with a

stock directly affectionate oversold

position stock was the fourth worst

performer in 2022. I think the fears

were not justified and it's a very

compelling situation yes that was Jim

Cramer literally talking about this bank

that's now trading for under a hundred

dollars a share back when it was 300

saying Wall Street is wrong to think

that this Bank isn't distract yet now

the bond market is starting to price in

that this Bank could go bankrupt then

again Jim Cramer's track record isn't

that great here he is talking about bear

Stearns back before the company went

bankrupt look at what it was trading for

when Jim Cramer was pitching it okay

Peter writes sure

in terms of liquidity and get my money

out there no

your money yeah this is real okay if

there's one takeaway other than the plus

400 somewhere bear Stearns is not in

trouble I mean if anything they're more

likely to be taken over

don't move your money from Fair that's

just being silly don't be silly okay

just so you get a sense of what's

causing the agony by this point I know

you've been talking about it it's

financials led by bear Stearns after

what essentially is a bailout from the

FED bear Stern shares down 90 percent

this morning and it's not just bear

pretty much every single bank is

plunging an early trade this morning

Lehman which is very similar to bear and

its Reliance on fixed income is down

nearly 30 percent you have big names

like Goldman Sachs down eight percent

Citigroup down eight percent so it is

paying across the board this morning and

as you know it all emanates from uh this

well the shock this weekend that JP

Morgan along with the Fed was going to

be bailing out bear Stearns for two

dollars a share this is a stock that

recently was trading at 80 last year was

trading at 160. it is the fifth biggest

bank on Wall Street it is significant in

that it is establishing a price for some

of these hard to Value Securities and as

you are well aware that price is pretty

much zero and that's why why you're

seeing pain across the street it's also

despite the fact that JP Morgan said

everything is fine at Silicon Valley

Bank in fact we think it's going to go

to the moon and it's going to be worth

375 dollars they never told you that

maybe there would be a bank run and

their assets are toxic their money raise

is failing the money raised we're going

to talk about that they announced

yesterday has already failed we'll talk

about that as we go through the sheets

in this video but the stocks are likely

to close down even more today as they

Trend towards bankruptcy but the

contagion is not just Silicon Valley

Bank it's already spreading First

Republic Bank is presently Frozen for

trading because First Republic Bank of

San Francisco is down 21 on the day and

likely to fall more we have to pay

attention to this because this could be

the beginning of a 2008 financial crisis

again but with two quick notes that St

Patty's Day is coming up so we've

started the amazing sale on the programs

and building your wealth linked down

below prices will be going up after that

sale and if you're interested in

investing in my startup house hack that

opportunity will end March 31st for

accredited investors where you can still

get warrants and then we're moving on to

the non-accredited round probably in May

or June househack.com Silicon Valley

Bank is a complete disaster and it

should scare you this is the 15th

largest bank and it basically used to

probably still at this point does but

not for long back about half of all

Silicon Valley startups Silicon Valley

and startups are notorious for losing

money and in tough times going bankrupt

basically potentially being vampire

companies that if they don't have a

product that can cash flow end up

sucking more cash out of the systems

only to potentially go bankrupt and

unfortunately

one of the first Banks uh exposed to the

Silicon Valley startup world is going

under well at least they say they're not

going under but and some people actually

think it's a buying opportunity but I

think they've lost their mind because

this is really bad let's go ahead and

cover what's going on so let me give you

a little bit of background first

basically there's a banking world where

what banks like to do is they take

customer deposits and then what they do

with those deposits is they invest them

in things to collect yields basically to

yield Farm if you will and what a lot of

banks did is they would take deposits

and then they put that money into bonds

and they would those bonds would vary

they could be treasury bonds shorter

duration ones not very risky right if

you put your money into six months 12

months 18 month bonds little risk

because you could just hold those bonds

and take money from them right over time

and when you need the cash the money

shows up in 6 12 18 months but what

happens if you've committed to let's say

mortgage bonds and you've committed a

lot and I mean billions of dollars to

mortgages which are much longer in

duration like commercial bonds which

might be a 10 20 years residential bonds

which could be as long as 30 years well

all of a sudden when interest rates go

up the value of your bonds plummet and

that means your balance sheet has what

are known as unrealized losses and when

you need to raise money you might have

to start realizing some of those losses

that's exactly what just happened at a

Silicon Valley Bank and it's leading to

potential fears that we could see a bank

run where people basically go to the

bank and say we're taking all of our

money out of the bank because we don't

trust you anymore the problem though is

if everybody starts withdrawing their

money from the 15th largest bank what

does that mean for the rest of the

banking system well let me give you a

little hint it's bad news yesterday 90

billion dollars of banking market cap

evaporated on the market and that is

because institutions are very fearful

about what just happened with Silicon

Valley bank now this is different I want

to be very clear it's very different

from silverty silvergate was a Community

Bank in California much smaller that

helped provide liquidity in the crypto

space it basically let Banks or or gave

people an on and off ramp to go from

dollars to crypto 24 7 was their pitch

they're liquidating they're closing down

their Bank well just a day after

silvergate suggests you know what we

can't survive anymore we've got to close

down our bank

who who Falls next well now potentially

the 15th largest bank now before we go

into some of the financials I want you

to know some of the background of what's

going on

Peter Thiel

he has has a venture capital fund and he

started telling all of his companies to

withdraw their money from Silicon Valley

Bank the more people withdraw their

money from the bank the less cash the

bank has since Banks generally invest

their money into something that might be

upside down when people demand cash what

happens the bank has to take more losses

on loans or bonds or whatever they have

when the bank takes more losses then

eventually they might default on their

own borrowings on their own obligations

and when a company with what used to be

210 211 billion dollars of assets starts

defaulting on some of their own debt

guess who starts taking the L then well

potentially companies like JP Morgan

Goldman Sachs other big companies

big Banks that's when you really start

having potentially systemic issues

there's a reason why Bill Ackman is

suggesting that the Federal Reserve

should actually bail out silver uh

Silicon Valley Bank how crazy is that

right back to 2008 bailout world because

we are concerned about the consequences

of a bank run at one company potentially

spreading

but it's not just Peter Thiel who

suggests you know what there's

relatively low risk of you taking your

money out of a bank but you don't want

to be the last person standing why would

you take the non-zero risk of

potentially losing your Capital at a

bank if you could just withdraw your

money and go put it in a safer Place

remember anytime you have more than 250

000 at a bank you're generally over the

FDIC limits now I say generally because

sometimes you can have your money

divided up by something like Robin Hood

where they divide your money into

multiple banks for you but what's

remarkable here it's not just the 90

billion dollar banking Wipeout but the

fear that is spreading Peter Thiel

suggests people take their money out of

Silicon Valley Bank not only that but

you've got Venture firm tribe Capital

advising companies move some or all of

their balances out of the bank as soon

as possible because the risk of a

default and essentially being the last

person standing without any money and

then you get caught up in litigation for

year years to try to get Pennies on your

dollar back is non-zero in other words

get out

there's another Capital company sending

emails and text messages

urgently imploring their CEOs to move

money out of Silicon Valley Bank this is

a classic Bank Run that's what this is

this is a bank run so you have the 15th

largest bank in America now going

through a bank run during a Fed induced

recession so why is the market pissed

well the Market's really pissed because

this is exactly the kind of Black Swan

event that everyone is worried about

that could potentially take down a

greater portion of the financial system

that's very scary that's why you have

Bill Ackman saying hey

we need to bail this company out because

if we don't things could actually end up

being worse that's scary but think about

this

if you really want to see why the

markets are fearful all you have to do

is now look at stock prices look at what

the bond market is telling you the bond

market was telling you ah the fed's

probably going to raise rates 50 basis

points soon ah the terminal rate's going

to go up to 5.6 oh Break Even inflation

rates are rising what actually happened

all of those were versed Break Even

inflation rates on the five-year

plummeted about 45 basis points

yesterday that's a big deal that means

we were starting to show signs of

potentially inflation expectations

running away which is really bad for

inflation potentially shows that uh oh

Paul volcker's got to come to town soon

because inflation's being sticky oh nope

those inflation expectations plummeted

but they didn't plummet because

inflation is now all of a sudden not a

problem anymore they're plummeting

because of fears about real financial

distress in the banking sector the last

place you want to hear about a crisis

because that's what led to the 2008

crisis a real estate bubble that led to

a failure of financial institutions

that's scary listen to Bill Ackman for

example Bill Ackman tweeted to be clear

a bailout should be designed to protect

Silicon Valley Bank depositors not

Equity holder so he's already having to

defend this argument that the government

should guarantee Silicon Valley Bank he

says the failure of Silicon Valley Bank

could destroy an important long-term

driver of the economy as venture-backed

companies rely on Silicon Valley Bank

for loans and holding their operating

cash in other words Bill Ackman is

starting to say look Silicon Valley Bank

goes away and they stop providing loans

to venture capital well then Silicon

Valley goes bust and all the people who

think they're rich in Silicon Valley

they go bust they stop spending money

they stop spending money good luck at

earnings for companies in the S P 500 or

the NASDAQ this is exactly the kind of

Black Swan you want to avoid and so this

is why Bill Ackman says if private

Capital can't provide a solution a

highly dilutive government preferred

bailout should be considered you

literally have Bill Ackman the guy who

went on CNBC screaming that we should

lock down the entire economy for 30 days

to stop the spread of covet just shut

everything down while he's actively

shorting the market he's on CNBC yelling

shut everything down

he basically perfectly made the bottom

of the market March 23rd of uh of 2020.

the same person is now saying the

government should bail out Silicon

Valley Bank

the same person

now this is insane because not only is

he calling for this kind of bailout but

what's actually really interesting is

Jim Cramer made a CNBC video just a few

days ago he had a piece on uh Silicon

Valley Bank and unfortunately much like

bear Stearns suggested Silicon Valley

Bank is potentially a buying opportunity

before it lost 60 percent yesterday and

another 50 percent in pre-market right

now this is eerily similar and ways that

you don't want it to be similar

to 2008 and to the collapse of bear

Stearns bear Stearns was about a 40 to

50 dollar stock when Jim Cramer told us

your money is safe with bear Stearns and

what ended up happening

the company ended up being bailed out by

JP Morgan for ten dollars per share

massive collapse from that point the

same thing is now happening with Silicon

Valley Bank it was almost the kiss of

death for Silicon Valley Bank

but it's not just that it's the

financials I want you to see the

financials of how dirty these financials

actually are and what the company is

doing and why the stock is falling as

much as it is so take a look here this

document right here shows you first of

all I wrote some notes at the top in

terms of uh some some losses here that

have been happening with the stock but

first I want you to look at this today

we took strategic actions to strengthen

our financial position basically we's

running out of money but not only are we

running out of money the company sold

substantially all of their available for

sale Securities portfolio with the

intention of reinvesting the proceeds

and commenced an underwritten public

offering in other words the company is

scrambling to raise

2.25 billion dollars 1.25 billion from

shares 500 million from another private

company general Atlantic who's investing

500 million and then a bond race in

other words the company as of

yesterday's market cap is scrambling to

raise one third of the company's value

in cash just to try to stay afloat

that's very bad very bad and look they

provide a lot of liquidity for Silicon

Valley and startups but that liquidity

is now gone because the company doesn't

have any money anymore now could this

have been seen how could you see things

like this potentially coming well the

beautiful thing is you could go into

their earnings and you could see where

these losses actually Mount up and it's

kind of scary to look at but we'll take

a look at exactly it because these are

the things that if you're exposed to

banking stocks you potentially want to

start paying attention to so first thing

we have to do is we're going to go to

the Q4 report from Silicon Valley Bank

Silicon Valley Bank Q4 and we can jump

on over to page 14 of the Silicon Valley

Q4 report and I want you to see what you

have over here so this is page 14 of Q4

and what I want you to know is this

company just took an over 1.8 billion

dollar loss on their available

Securities and what I want you to see

here is the net income for this company

the net income for this company on an

annual basis was 1.5 billion dollars

last year

1.77 the year before that they just in

one Fell Swoop lost over one year of

income okay it's not just that though

because even though they may have taken

around a two billion dollar loss that's

just the beginning because their losses

are actually substantially greater than

that and you could see unfortunately

similar things in the banking sector and

other areas as well which I'll show you

so now we're going to go to the annual

report and we're going to look at page

64. so what do we have at page 64. well

page 64 shows you where this company

this is silvergate has unrealized losses

so what banks are allowed to do is

they're allowed to show you hey look we

have a lot of bonds and security

Holdings see here are some of our

residential bonds here are some of our

commercial bonds here's some uh of the

the other agency bonds that we have

these could be like to Jeannie Mae

Fannie Mae where these bonds are doesn't

so much matter but what's scary are the

potential unrealized losses that this

company has and what you're going to

find is they have losses in excess of 15

billion dollars take a look at this this

is the actual Q4 right here and what you

can see right here is the helter

maturity Securities Show an actual value

of a 76 billion dollars but they're

actually showing them on their balance

sheet at 91 billion dollars so this is

how the banking system can literally lie

to you in your face they will tell you

on their balance sheet look we have 91

billion dollars in available capital

from these hell to maturity Securities

like those bonds that I showed you oh

but in this footnote over here we're

actually going to let you know that

that's actually only worth 76 billion

dollars that difference is an unrealized

15 billion dollars of losses at the 15th

largest bank in the country that's

because they're yielding may be about

1.9 percent on the average of their bond

portfolio well free risk-free rates

right now are sitting around four

percent in order to sell off these bonds

to raise cash you basically have to give

the bonds away and why would you have to

sell bonds well you have to sell bonds

when people stop depositing money with

your bank and guess what startups don't

have money to deposit with your bank

anymore so now not only are you running

out of the potential deposits that

basically fund your Ponzi but people are

actively being told to as quickly as

possible withdraw money from Silicon

Valley bank now JP Morgan wouldn't have

been any use to you unfortunately

because take a look at this that I saw

on Twitter somebody posted this from

November 15th of 2022 and they wrote

they provided this JP Morgan piece which

gave an overrate weighting of this stock

of 375 dollars and they bragged about

how even though this company has

unrealized losses this company is

probably going to see a massive inflow

of client funds and the exact opposite

is happening so in other words you add

JPMorgan covering for Silicon Valley

Bank which is now I mean the stocks

trading for for a fraction of what it

has been trading for so right now

Silicon Valley Bank is trading for a

hundred and six dollars in pre-market it

is actually down to 36 dollars

the day before yesterday it was trading

for 267 dollars and it had a price

Target from JP Morgan of over a hundred

dollars more than that of 375. so in

other words JP Morgan was telling the

world oh don't worry this bank's gonna

get massive inflows it's worth 375

dollars not only is it worth 375 dollars

but we know it's only trading for 275

right now and don't worry about all the

unrealized losses the company has don't

worry it's fine they'll get massive

inflows from their clients well now not

only are they not getting deposits

they're basically suffering a bank run

people are running to the the exits as

you should I would not be speculating on

this Bank I'd be getting my money out of

a Silicon Valley Bank if I had any money

exposed to them or any of the other

companies that they're involved with I I

personally would recommend getting my

money out but anyway so you have a stock

trading for in the 260s that JP Morgan

says is worth 375 because don't worry

money's gonna come in then money stops

coming in the Ponzi stops the stock goes

down to 100 bucks now it's down to

thirty six dollars at the same time as

the company is trying to raise a third

of their yesterday market cap okay but

wait a minute if the stock is now down

another two-thirds that means they're

basically trying to raise as much money

as their market cap they're going to

crush this stock this is like rivian all

over again except it's in the banking

sector and rather than just a car

company going bankrupt where you have a

car company that's worth 15 billion

dollars supposedly that needs to raise

another 15 billion dollars to survive

rather than just having a car company

going bankrupt this could really have

systemic issues for the entire Financial

system and this is why bond yields are

actually falling this is why

expectations are uh oh the fed's not

going to go 50 because they could

actually break what's turning out to be

a fragile banking system this is scary

not only is it scary because you think

okay well it's just Silicon Valley Bank

like who cares right it's worse than

that I want you to see three pages from

the JP Morgan annual report and in my

opinion this is scary okay you ready for

this I don't like this I don't like

reporting bad news but look at this

first I want you to look at this

JP Morgan on their balance sheet shows

185 billion dollars that they have lent

out to other institutions they also hold

hell to maturity Securities much like

Silicon Valley Bank data somewhere

around 600 billion dollars right here

but be careful because Securities

borrowed means Securities or or like

bonds or whatever things they've lent

out to other companies it's an asset

that's how you know see assets that's

how you know it's lent to someone else

well what happens if a Silicon Valley

Bank has to start defaulting on stuff

they've borrowed well then JPMorgan

potentially starts getting hit and what

if they have to start raising money well

then you have a big oopsy-doopsy why do

you have an oopsy-doopsy because JP

Morgan as well has massive unrealized

losses look at this folks right here

unrealized gains slash losses on

investment Securities

11.7 billion dollars but it gets worse

ready for this we go to we go to I mean

this this is like insane it's it's like

borderline fraudulent you ready for this

look at this over here so that's just

the available for sale Securities losses

right watch this chart this is from JP

Morgan December 31st JP Morgan this

isn't Silicon Valley Bank anymore this

is JP Morgan look at this this column

here is unrealized gains this column

here is unrealized losses which means

they're actually not showing up on net

loss yet they're just sitting on those

losses oh it ain't a loss until you sold

well what if you suffer a bank run or

other Banks stop start losing their

capital or defaulting on their

obligations to you JPMorgan well watch

this you ready for this follow that

column okay the left side is unrealized

gains the right side is unrealized

losses you ready for this unrealized

gains 995 million unrealized losses

47.9 billion dollars of unrealized

losses at JP Morgan

47.9 billion dollars of unrealized

losses do you think the the 15 billion

over there at Silicon Valley Bank is bad

JP Morgan's got three over three times

as much in unrealized losses now

hopefully JP Morgan and the other Banks

don't hit any kind of banking crisis or

bank run because then you'll really got

oopsie doopsy problems now I don't think

so but let me put it this way you got to

pay attention to Silicon Valley Bank

this is not a matter of some stock that

you wish you shorted two days ago

everyone and their mom wishes they

shorted it two days ago okay that's not

the issue the issue if nobody really

cares about Silicon Valley Bank other

than people who have deposits there and

then some of the Venture Capital folks

who are like damn it there goes our easy

money I mean quite frankly money is

still so easy which is insane the fact

that you could have an AI startup called

character AI which is just two employees

who left Google who worked in the AI

Department start a company in Andreessen

Horowitz gives them a 250 million dollar

cash bundle at over a billion dollar

valuation that shows you how frothy the

market still is it's absolutely insane

this is really bad this is the start of

what a Black Swan looks like it's the

beginning of the dominoes falling it's

really bad we don't yet know all of the

implications of this but you need to pay

attention to this whether you're exposed

or not