holy crap Credit Suisse… this is worse than SVB — banking collapse

we gotta talk about Credit Suisse

because there is a disaster happening

with Credit Suisse and it's not good

because Credit Suisse is a let's just

say hugely big bank and this sucker is

down 25 in the pre-market right now and

uh let me just kind of uh show you uh

how big uh this sucker is because it's

it's a problem okay first I'm going to

show you this chart of bank failures and

what I want you to pay attention to is

the circles okay so right here you could

see the Washington Mutual Bank failure

Circle at 307 billion dollars of assets

then you have a bunch of other bank

failures right here which are like

insignificant like 440 banks that failed

between 2009 and 2012 nobody cares then

over here you got some miscellaneous

bank failures you got Silicon Valley

Bank and Signature Bank over here at 209

billion 110 billion okay so those are

the circles Credit Suisse my friends

is five times as big as the Signature

Bank Circle it is two and a half times

as this as big as that Silicon Valley

Bank Circle and it is about 60 percent

larger than that Washington Mutual

failure so in other words a lot of

people are freaking out that this

banking failure from Silicon Valley Bank

is basically just the start okay

remember this in the last week we had

three massive banking failures

silvergate

Signature Bank and Silicon Valley Bank

two of those were the largest bank

failures since 2000 the 2008 financial

crisis they both happened within the

last week now Credit Suisse which has

already been in hot water and their

stock has basically been straight down

like you thought Tesla was an easy short

there's been nothing more easy to show

up than Credit Suisse over I hate to say

it but a very very long period of time I

had to zoom out to the week chart the

week chart to show you on Weeble here

how bad it's been like this right here

is the 200 week moving average and the

200 week moving average is basically

straight down okay why what is going on

at Credit Suisse and could it

potentially create more contagion well

uh spoiler alert uh yes the Federal

Reserves buy the effing pivot facility

that's not actually what stands for but

it is the B FTP facility only has about

125 billion dollars of available Capital

to bail out Banks now it's possible the

FED could leverage that 5 to 10x or

maybe even more kind of like they did

during covid so that facility could be

leveraged up and then there could be

more money but ultimately that's just

going to be money the taxpayer has to

pay back so anybody who's telling you

that this is not a taxpayer backed

bailout

has no idea what actually is going on

all you have to do is follow me on

Twitter at realme Kevin and you can

actually see the actual treasury

facility that backstops what the FED is

doing and guess where that treasury

facility gets money from taxpayers via

Congressional Appropriations okay yes

technically right now it's not a

taxpayer bill out but it's backed up by

taxpayers anyway so if it gets worse

taxpayers something goes wrong taxpayers

the taxpayers are guaranteeing the

bailout basically but anyway

what's going on with Credit Suisse

Credit Suisse is a Swiss bank with 578

billion dollars in Assets in other words

it's a too big to fail bank and the

sucker is failing it is facing a crisis

as the largest shareholder of Credit

Suisse has just ruled out assisting the

bank any further the bank's one-year

credit default swaps are now trading

near us like an insane level of a

thousand basis points that's insane go

into a little bit more on that in just a

moment but basically the largest

shareholder announced they can't provide

any more financial support and now the

stock's down like 26 in pre-market it's

probably going to crash throughout the

day it's just not good during this whole

banking crisis because it's suggesting

that hey we thought the banking crisis

was over but wait a minute there's a big

dog in the room that could actually

still be on the brink of failing they

were failing before Silicon Valley Bank

and they're still failing afterwards and

they're like

two and a half times as big as Silicon

Valley bank now uh this development

comes obviously after a ton of the

financial scandals that a Credit Suisse

has been associated with including a

greens Hill capital and arcados capital

management remember our kagos complete

disaster that was like one of the

biggest uh uh failures of basically

something it has somebody having about a

billion dollars in assets being able to

YOLO yeat them up to like 20 billion

dollars in assets and then lose

everything yeah how to go from 20

billionaire to bankrupt really fast

anyway that was a disaster a Credit

Suisse was associated with that heavily

but anyway it's important to note that

in November of 2022 Credit Suisse issued

46.2 million shares to existing

shareholders raising about four billion

dollars in capital to try to strengthen

their Capital position that was

extremely dilutive to shareholders right

now the stock only has about a 10

billion dollar market cap left back in

November which was uh about five-ish

months ago it had about a 20 billion

dollar market cap so you basically

diluted shareholders by around 25

however the current refusal to add

additional assistance is starting to

make people wonder if this bank is ever

going to recover it's kind of like when

a Founder puts money into a startup and

uh you know people are like oh that's a

good sign like they really believe in

the startup right like me I have a

housing startup and I'm literally like

risking my entire net worth on this

startup like if this startup fails uh

you know I could go bankrupt and then

it's just like wow okay yeah you're

putting a lot of faith on that startup

so I need to make that sucker work right

but like if a Founder stops supporting

their startup or like a biggest

shareholder stops putting money in you

kind of make you kind of start

scratching your head like have they hit

that point where they're like this is a

sunk cost uh we cannot be a victim of

the sunk cost fallacy the sun cost

fallacy is the principle of we've put X

dollars in but we should not like some

the sun cost fallacy is basically well

we already put so much money in

well let's just put in more because you

know if we stop putting money in we're

basically walking away from our

investment and that's kind of what's

happening now they're stopping putting

money in it's it's anyway I won't go

with any more analogies I think you

understand the Sun cause fallacy so

anyway

now the crisis of Credit Suisse because

the Swiss bank is having a ripple effect

on the European financial sector shares

of banks have like plummeted to Fresh

record lows contributing to a broader

disaster in the European Bank stock ETS

the ongoing like struggles basically at

Credit Suisse are heightening

instability around the entire Financial

system in the United States not only

leading the stock market and bond market

rather now to price in one basis I'm

sorry 100 basis points or a full one

percent cut in interest rates by the end

of the year but they're also starting to

make people wonder is this 2008 all over

again Michael burry made us basically

seem made this seem like yes Michael

burry's like uh Silicon Valley Bank is

just the tip of the iceberg but

everything is rhyming like 2008 and 2000

uh like 2000 did the.com bubble and this

isn't good this potentially is setting

up for another banking financial crisis

and that's kind of being seen at least

for Credit Suisse in the pricing of

their credit default swaps okay now

cds's credit default swaps they're

basically a financial instrument that

work like an insurance policy it's kind

of like an option but a little different

it's basically a contract where one

party pays a premium to another in

exchange for protection against the risk

of a specific credit event happening

like a default if the specific event

occurs the party providing the

protection pays out the other party it's

a hedge it's kind of like an option

contract okay uh now in the case uh but

they're they're not as regulated and

this is why we kind of had the 2008

financial crisis because they're kind of

Arcane and not as regulated uh they're

derivatives okay but so are options

they're derivatives but anyway

in the case of Credit Suisse a one-year

credit default swap is now sitting at a

thousand basis points bips which means

it basically costs a million dollars

to ensure against 10 million dollars

worth of the bank's debt defaulting

that's insane it's a massive premium for

a credit default Swap and it shows how

expensive it is getting to protect

against This Disaster because as the

disaster gets more and more real the

more expensive it gets so basically the

bond market and the credit default swap

Market is telling you

we screwed and the Ripple effects of

potentially Credit Suisse failing would

be probably two and a half times as big

as the failure of Silicon Valley Bank

not only that but remember when we had

Silicon Valley Bank Fears Everybody

basically flocked to JP Morgan and Bank

of America Bank of America is bragging

about how they just got 15 billion

dollars of inflows that's a lot of money

in inflows right well if Credit Suisse

goes down

it's gonna be even worse because that's

like that's one that's nearly one of the

top eight Banks that's insane it's it's

a huge bank so anyway uh this is a a

sparking discussions about disclosure

requirements over recent reporting

weaknesses they're actually literally

disclosure week like they just disclosed

that they lack confidence in some of

their prior financial reporting that's

like the last thing you want to tell

your shareholders and so Credit Suisse

is trying to deal with not only uh

poorly reported Financial uh uh

disclosures a following stock price

their largest shareholder who doesn't

want to bail them out anymore but also

their exposure to a lot of high-risk

businesses which is bad because if a lot

of your loans are to high-risk

businesses during a financial crisis

well things could get worse as basically

people default on those higher risk

loans which is really bad so in other

words long story short

Credit Suisse is sucking it's been the

easiest short for the last years it's

basically going straight down and the

best thing that you could do is join the

programs on building your wealth link

down below uh I'm I I can't advise being

being short these because I can't give

you personal financial advice but I mean

if you just I mean look at this this

chart goes this is the 200 week moving

average going back to 2017. dude it's

straight down

I certainly certainly since 2021 it's

been straight down I mean go to the day

chart this is the 200-day moving average

now this is just sad it's just trending

to zero and it's going to a buck 80 in

pre-market down about uh 28 right now so

even though we had good PPI uh numbers

and retail sales numbers uh this morning

the market probably is moving down on

fears of financial contagion largely in

part due to what's going on with Credit

Suisse so that gives you the latest on

Credit Suisse what's going on there

check out the linkos down below