CNBC Anchor *LOSES IT* | MASSIVE Freakout on Bank Bailouts

yes they're talking about mortgage

Holdings at a bank whose clients are

super interest rate sensitive the whole

thing from top to bottom in my opinion

is just horribly mismanaged and the fact

that we're giving anybody a Buy in this

instance is so nothing to be proud of I

think that's pretty much that was my

question for you Rick dude right on

right freaking on this guy nailed it

this is ridiculous this bailout and

whether individuals should be bailed out

the bank should be bailed out do you

hold these depositors effectively

accountable

my mom's 87 years old she still moves

her money around she's very cognizant of

insured up to what 250 000 means and I

don't suspect there's a lot of

businesses that could have less than

that which means they need to do their

due diligence and where they domicile

their money yeah I have no sorry

feelings for anybody and when I hear

stories that people are happy that

they've done this because their

relatives have deposits my guess is all

the relatives were thinking about

probably Handler money with more care

than the clients of this Bank okay and

then finally Rick now now that it

appears that that everybody's being

backstopped it turns effectively so many

banks into public utilities yep how

should how should they be operated then

what should Executives get paid to do

what they do running our Public

Utilities you answered your own question

look at our Public Utilities you know

when we first invented cars and gasoline

they both grew up together you had no

gas stations you hardly had any cars

they grew up together now here we are of

course trying to make EVS happen

overnight in an inorganic way okay same

thing we're talking about energy

companies as utilities to me when you

put those words together when any entity

becomes a utility it just becomes more

mismanaged as they go arm and arm with

the government right Rick thank you we

got some other news beginning yeah look

he is so right I mean straight up fact

bombs there yesterday I went into uh

Mario's Twitter spaces a lot of people

in there Bill Ackman you had

presidential candidates in there

Senators congressmen people well anybody

who really matters on Twitter was either

listening or in there I had the honor of

speaking on that Twitter spaces and I

was one of the people one of the very

few people actually taking the

contrarian point of view now I like to

do that not solely to be contrarian but

because I do feel like I have different

perspectives and my argument was hold on

a second maybe

depositors should be taking at least a

little bit of a haircut because if

depositors don't take a little bit of a

haircut and the government which is

exactly what they ended up doing ends up

just bailing out everyone what they're

sending the signal of is don't worry

Banks if you fail because you're too

risky with your lending don't worry we

will bail you out even if you're less

than too big to fail in other words

you're smaller than too big to fail

you're too small and to to fail well

that doesn't make sense because now

we're basically saying bail everyone out

my thesis is all you're doing by a

hundred percent backstopping everyone is

giving the middle finger to FDIC

Insurance you've just told all of

America that a 250 000 limit that is

your insured limit per account per

person so you could actually you know

Jerry rig that all the way up to like

two million dollars you can go to the

fdic.gov and you can figure out oh if I

have uh an IRA if my wife has an account

if I have an account if we have a joint

account you can do all the math and you

can get up to two million dollars in

FDIC Insurance all you have to do is go

to fdic.gov and figure it out but

basically what the government just said

is hey um that 250 000 limit

we weren't serious about that the limits

actually infinite don't worry you're too

stupid to understand that when you go to

a small community bank and they

underwrite your loans well maybe we

don't even know what underwrite means

when they give you a loan without even

asking what your income is or can airing

if you have any income kind of like 2008

when dead people got loans for mortgages

and people were like well housing just

goes up forever maybe maybe the

government just thought to say don't

worry we'll pamper you all the way from

birth to death because you're too stupid

to figure it out yourself to me it's a

big middle finger to people who actually

are diligent with their money we all

have heard about 250k FDIC there's

nobody that goes into a bank and doesn't

know about it because there's signs and

stickers everywhere that tell you you

know once you have more than 250k and

subject to the various different

accounts rules that I talked about that

you're at risk and the fact that you

benefit as a depositor from the

incentives the bank gives because

they're taking riskier action by either

offering you higher rates lower fees or

no underwriting basically simple lines

of credit for basically uh businesses

that have no cash flow mortgages for

business owners of businesses that have

no cash flow that are super risky now

the bank takes all the risk and what

you're saying by creating an unlimited

guarantee for them not even taking a

mere what maybe even a five percent

haircut of deposits off of over 250k

well you're basically telling every

other bank in the United States is hey

don't worry take all the risk you want

because we will bail you out no matter

what we'll just bail you out so take any

risk you want so why the hell would

anybody not now uh just take whatever

kind of risky loans they can get why

would Banks not start offering those

potentially creating even more of a

bubble in the future now short term it's

frustrating it's a middle finger to the

people who are diligent and the people

who pay attention to these sort of risks

however it's obviously a boon in the

short term for those businesses who get

all this capital and also potentially

the moral hazard that's now created is

going to potentially reanimate or

accelerate should I say the debt bubble

that we're actually in now that could

actually be fantastic for like the next

10 years it's entirely possible that 10

years from now we're just straight up

because all the banks are like

we're just going to get bailed out so

let's just lend money like crazy and

what could happen is you could have the

craziest bull market ever for the next

10 years and really what you're just

doing is setting up an even bigger

bubble to pop in the future you're

kicking the can down the road that's all

it is it's Corp it's it's banking

socialism is what it is nobody's allowed

to lose money no because everybody's too

stupid to handle things themselves let's

just let's just you know let taxpayers

all distribute the the costs now I get

it people keep saying Kevin Biden and

the treasury Department say no it's not

taxpayers that are paying the bill yup

yeah it is these are facilities that

were established by the Federal Reserve

to take toxic assets and were funded by

taxpayers back in 2008 after the

Dodd-Frank crisis it's called the

treasury exchange stabilization fund

it's ultimately what backstops the

program when the FED loses money on the

toxic assets they're buying through the

B tfp bailout facility it's the acronym

is not by the effing fed pivot uh but

that's that's what it kind of seems like

but anyway

um it's wild because when that program

actually takes losses guess who's gonna

cover the bill

taxpayers so it's totally a fraud in my

opinion to basically call this not a

taxpayer-funded bailout but whatever let

them label it however they want uh their

goal right now is to prevent contagion

to me it just sends a big signal that

the fed's not concerned about inflation

anymore not only is the Fed not

concerned about inflation but they're

able to wake up on a Sunday because

they're so nervous about what's actually

happening in markets that they realize

oh crap it's probably not going to end

with this one bank it's probably going

to keep getting worse I don't know

that's just that's just my thesis I mean

maybe maybe I'm wrong to say people

should actually look at an insurance

policy and go that says I'm only insured

up to 250k maybe I should be smart about

where I put my money and diversify oh

wait why would I do that I'll just act

dumb and let the FED bail me out and

sure enough that's exactly what they do

whatever man whatever you know the

reality is the vast 99 of Americans

don't exceed the 250k FDIC limit anyway

so this is just straight up taking money

from taxpayers and bailing out rich

people or businesses with lots of money

now I get it I get it there are a lot of

businesses who are operating their

business paycheck to paycheck and

they're like ah but if I don't have

access to my Capital I can't payroll pay

payroll okay well you got back stopped

now take the lesson take that as a

little wake-up call and diversify your

money away don't ever put yourself in a

situation again where all your money is

sitting at at a one of these

smaller Banks to where if one of them

fails you don't have money at least if

you're at the larger Banks you know the

FED is guaranteed going to bail them out

uh and run the money printer because

they've already said that the top eight

are too big to fail right the smaller

ones maybe at least diversify amongst

the smaller ones

but then again right now the FED has set

a precedent for bailing everything out

so maybe that doesn't