The Financial System is Cracking | Massive NEW Danger.

folks the market just hit brand new lows

yet somehow this number popped up today

24 million 779 and 578 that is how much

money house hack has raised in 21 days

as the stock market has hit new all-time

lows I'm nearly in tears and I'm super

honored that at the bottom of the

freaking Market y'all trust me enough uh

to to take house hack to the moon so I'm

honored if you don't yet know about it

go to househack.com if you're accredited

stay tuned in January for non-accredited

all right folks look this is probably

the worst stock and bond market that

we've had in quite a while it certainly

is the worst bond market that we've had

ever since at least the 1970s but some

people literally go as far as saying

ever that's because when we take a look

at the Blue Chip bond market look at

those blue lines over there on the far

right side see that big drawdown over

there yeah that's a drawdown in bonds

these things usually don't go down that

much I mean people who have like that

balance 60 40 portfolio are just getting

screwed bonds are getting absolutely

reamed in this market and we're going to

talk about some major credit stress

that's actually happening in the market

right now and what it could mean to us

why are we seeing reverse repos by the

way Skyrocket let's talk about those as

well then we're going to talk about

what's going on with the Eurozone we'll

talk a little bit about London and we'll

talk about my thoughts on all of this

and of course it all has to do with the

FED ah but first it's worth noting that

yes the NASDAQ has officially hit brand

new lows take a look at this folks the

NASDAQ finally broke the lows that we

had on June 16th and we are finally

below the zero percent on the FIB line

breaking lines again last time we had

lows that we broke was this yellow line

over here where we bounced off this

floor once twice three times four

bounces over here and uh that didn't

matter we still ended up dropping

another like 15 percent from there and

uh now we just broke the floor again so

could be a little bit of a bad Omen

certainly one that'll create some

anxiety not so good and anxiety is

exactly what companies like Nike and

Carnival Cruise Lines felt today Nike

down

12.8 percent the biggest one day drop

since

2001 folks that's 21 years in 21 years

Nike has the biggest one-day drop it's

so bad that the volume candle is almost

touching how low the bar went today if

if you're into ta you know that's a bad

day Carnival Cruise Lines did no better

worth mentioning that course members and

I did a deep analysis on Carnival Cruise

Lines and other cruise lines for about

two or three days in a row about a month

ago and we decided Well not that I could

speak for everybody collectively but I

certainly decided not to touch these

with a 10-foot pole given how much debt

they have but also so advertising

uncertainty I read the earnings look

they told us about this advertising

uncertainty in the last earnings report

and I'm like there's no way I'm putting

money into the cruise lines right now

thank freaking God I did it anyway uh

the earnings report today from Carnival

same thing folks you know what they said

we're gonna double down in the second

half of the year on Advertising that's

what they say on one part of the

earnings report and then on the other

part of the earnings report they're like

we're gonna try all these new strategies

for advertising and I'm like oh my gosh

you're basically telling us you have no

idea what you're doing but you're going

to spend more on it I'm like this is

horrible especially with all the debt

they all have I don't know I don't know

but anyway that's what kept us away from

them by the way like if you're not part

of these course member live streams yet

you're missing out a lot this is the

kind of stuff we do we pick an industry

we go deep on a few companies uh and we

try to learn everything we can about the

industry and then we move on to the next

ones whether it's the casinos whether

it's Autos whether it's Eevee whether

it's chips whatever we're trying to find

the best safety that we can and uh the

cool thing is you could just hit play

and listen me so join any of the coupons

linked down below or courses linked down

below and we do have a coupon code

expiring tonight so let's talk about now

what's going on with credit markets

because this is probably the scariest

thing right here credit markets yeah you

know for for us in the stock market

they're not something that we generally

pay much attention to but I'm talking

about it because we might need to start

giving some Credence to what's happening

in the credit markets so I'm going to

simplify this as much as possible but

basically because you've got j-pow

hiking rates so freaking crazy high and

you could basically get a risk-free 3.75

on Treasury yields there are a lot of

people who would ordinarily be buying uh

debt which would be like junk bonds or

whatever think of it basically like

giving a loan to like Carnival cruise

lines and getting paid 11 right that's

that's kind of like a junk bond or

helping a bank finance an acquisition

for another company so basically let's

just make this up okay let's say

McDonald's is going to buy Burger King

and McDonald's is like cool we're gonna

put 20 billion dollars in and uh hey can

we borrow 30 bill from the bank and then

the banks are like sure okay hey um yeah

we can make that financing happen okay

good in the meantime hey anybody in the

market want to give us money uh that you

know and we'll pay you interest so that

way we can charge McDonald's interest

and kind of will be like the middle

person will collect fees because that's

what banks do right well the problem is

the banks are going to the market right

now and nobody's there like they

literally just had a massive 3.9 billion

dollar deal canceled this uh group

called Apollo Global Management was

going to do a 3.9 billion dollar buyout

and the banks are like we have to cancel

like we're pulling out and Banks never

pull out like they're falling out

because they can't get investors like

they just don't have the cash and you're

like well where is all the cash Kevin

and you look around and it's like it's

either people don't have it anymore

because they lost it people are

investing into the into house hack

because they're really smart my opinion

no guaran tease okay or or it's in the

reverse repo Market which is

skyrocketing right now you look at the

reverse repo Market which many people

heavily heavily misunderstand what the

reverse repo Market is but it's

skyrocketing I'll give you a quick

little glimpse of what the reverse repo

Market is but this is it this is what it

graphically looks like it's exploding

with with how much money is sitting in

Reverse repos I mean we're gonna be at 3

trillion in reverse repo soon we're at

2-4 right now and what this is is this

is a place where Banks Park extra cash

they have overnight and they're like

well Kevin if the banks have the cash

why don't they just Finance these deals

because Banks don't like to do that

Banks like to take money move it around

and collect the fees but we don't want

to risk the banking system and have them

take the risk of putting junk bond deals

together let the market bail those out

and if the market is demanding a higher

rate then that's the markets problem

right and that's that company Apollo

Global Management's problem but don't

risk the banks the banks are sitting on

a war chest of freaking cash and this is

your evidence that war that the banks

have a lot of money but it's also a

potential sign that because they have so

much money sitting around they're being

smart and they're actually not throwing

it into the bond market right now to

stabilize it because they're like no the

fed's just going to keep being

aggressive and they're going to keep

raising rates and that's literally what

the FED is telling us now we'll talk

more about the FED in just a moment but

you even like it's gotten so bad that

you have Bloomberg authors right now

writing articles and talking about

things like quote this is how it breaks

talking about the financial system the

financial system almost just broke in

the United Kingdom they got margin

called basically the Pension funds were

basically going to go bankrupt okay some

of the Pension funds we're gonna go

bankrupt that's really really bad so the

fiscal division uh or I'm sorry not the

fiscal division the financial stability

division of the bank of England which is

their Central Bank is like oh yes money

printer plays oh my goodness we must

solve the problem problem as hopefully

they did temporarily but now they set

that precedent which creates a dirty

moral hazard that if other Pension funds

start getting reamed because their bond

values are collapsing then they're just

going to bring out the money printer

again or it was a wake-up call to these

Pension funds and these Pension funds

guess what they're going to do now

they're going to start offloading two

things folks private equity and real

estate and this is why I think the real

estate market is going to get absolutely

devastated because all the investors who

are going deep speculating on the real

estate market are like

why am I holding rental property right

now when I could be breaking the piggy

bank dumping this rental property and

putting it into the bond or the stock

market right that's what some people are

thinking that actually creates a massive

opportunity to go bottom feeding with

house hack which is why I created Health

hacks so we can diversify right before a

potential financial crisis in the real

estate market this is a perfect freaking

time to do this like well I I mean I I

like knock on wood but I feel like we

could not have picked a better time to

launch househack.com anyway so uh anyway

this is a big issue I mean look at let

me show you just some more of these

charts just so you can see what's going

on okay here these are junk yields right

now junk bond yields right now look at

that averaging right now 9.71 we haven't

seen this kind of demand for a junk bond

since the covid crush since covid and

we're not even that far under that kind

of crazy Spike except we're just

gradually going up it's absolutely

insane this is a Triple C rated bonds

like super junk okay

absolutely getting reamed in terms of

pricing I mean you're just getting

destroyed uh with with returns over here

and this is the Goldman Sachs Financial

conditions or tightness index it

basically tells you like how tight is

financing right now it's the worst that

we've seen since also covet and I mean

look at that not that far off either

it's scary so basically like if you're

feeling bad and you're feeling panicked

trust me the credit markets are feeling

it as well and it's worse now than it

was in the summer which is crazy I mean

JP Morgan preferred stock is down like

30 percent Tesla I don't even think is

down well maybe after the seven percent

drop it's maybe close to that but I

think Tesla's somewhere around there for

the year you know and so is the NASDAQ

uh NASDAQ and actually Tesla I think is

still slightly outperforming the NASDAQ

but anyway actually I can't guarantee

that because I haven't looked in the

last couple days but anyway preferred

stock on vernado Realty people are like

oh this is safe this is safe you know

it's a preferred stock nope down 35

Austria is down like 50 percent on some

of their 100 Year bonds everyone's

losing money no one's safe the only

people who are like not losing money

you're the grinches the short sellers

but while they're making money now they

usually lose money like nine out of 10

times they just happen to be having a

party this year

okay so what also is going on because

there are some other crises we got to

talk about okay let's talk about those I

do want to say that lifetime access for

the wealth course is going away if

you've got it locked in you keep

lifetime access but if you don't yet

have access to the wealth course we're

doing a huge overhaul it's going to be a

huge theme as part of this channel here

it's going to be a really big change I

think a lot of people are going to be

really excited about that program but uh

lifetime access goes away after tonight

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join that lock in lifetime access

because it's going to go to a different

uh model and you're going to be paying

way less money for it if you get in

today so just sneak peek I told you so

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whether you're looking for property

management rental Renovations learn how

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agent Now's the Time to be a real estate

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yes while I am in the process of being a

licensed financial advisor I'm not a

financial advisor the courses are not

Financial advice I'm going to give you

all the perspectives that I can though

let's talk about Eurozone inflation so

we we saw this coming okay I warned

about this on Sunday and again on Monday

and again on Tuesday I'm like look the

Eurozone like these economies suck so

bad at predicting inflation the Eurozone

is going to hit double digit inflation

the estimate was 9.7 and guess what it

came in at double digits it came in at

10 except the problem was it wasn't just

that headline came in at 10 it came in

Broad I mean Euro at a two decade low

against the dollar uh the inflation came

in Broad to the point where if you look

at just core inflation it's up to 6.1

percent from 5.5 percent you take out

alcohol and tobacco which is a big deal

in Europe those are Europeans oh yeah I

could say that I'm a European although

I've never smoked a cigarette anyway up

to 4 point eight percent from four point

three percent goods and service

inflation super wide now and really what

you're doing is you're telling central

banks you got to keep raising rates and

this is terrible because frankly people

are now like suits are now riding on

Wall Street that London is about to lose

control of the pound because as the

Federal Reserve keeps hiking rates and

you get people like Brainard this

morning saying we're going to keep going

and we won't drop early we're not going

to pause early because we have to get

inflation to two percent we're going to

stay at higher rates for longer get used

to it markets well now people are

suggesting uh you know 28 out of 30

surveyed economists at Bloomberg are

suggesting that the bank of England is

likely to hike rates a full one percent

on November 3rd that's when they do

their big rate hike uh but only about

two out of those 30 economists actually

think that the bank of England will do

an intra meeting hike I believe it was

two I could be slightly off on that uh

but anyway from memory it was it was

very few things I thought there was

going to be any kind of emergency hike

but that in the meantime the dollar may

as well or the pound may as well get

prepared for for rates to rise

but even if the bank of England raises

rates a full percent which is why we saw

some recovery of the pound If the Fed

just bumps up another 75 they're going

to relatively look like they're behind

again so a lot of countries around the

world are falling behind the hiking

schedule of the Federal Reserve and

that's actually why the dollar is so

freaking strong retail by the way

starting to slow down I received an

email this morning that retail average

year to date Dennis from vandertrack has

been uh essentially investing 1.16

billion dollars per day into the market

but that has now fallen to 0.93 so 930

million instead of over a billion

retail's starting to run out of money at

the same time as the vix is skyrocketing

and credit card credit markets are

falling apart

boy my thoughts I hope you're out of

margin I hope you actually believe in

inflation expectations that you know

next year inflation will actually go

down and it won't like Plateau at like

five or six percent leading the FED to

go crazy on us but uh that's really the

only reason you should stay in the

markets and uh stay out of debt increase

your income do whatever you can uh you

know even if you have to make a YouTube

channel and just pitch the fact that you

have a coupon code expiring for your

courses linked down below or you've got

a house hack investment that you got to

pitch you gotta you gotta work harder

this is these are the times of the

market where you put your boots on you

strap them tight and you go okay we're

just gonna go through hell for the next

two years but you know what at the end

of these two years we're gonna come out

of this thing we're gonna go damn now

we're able to live hopefully the dream

and we're able to to reap the benefits

of uh the seeds we saw with the plant it

so to speak and of course we're going to

be going on a shopping spree with house

hack ideally when the market bottoms not

ideally before that anyway thank you so

much if you have any questions make sure

to go to Discord or go to metcaven.com

chat you can tag me there at me Kevin

we'll see in the next one thanks so much

goodbye