MAJOR Banks WARN of Mega Collapse Coming: PREPARE.

hey everyone me Kevin here it was nine

days ago that I posted a YouTube video

titled going to cash and boy oh boy a

lot of things have actually gotten worse

since that video in this video we're not

just going to remind you that structural

CPI and PPI has stagnated against many

people's expectations which is a problem

but we're going to save that because we

already know about that we're going to

focus on some big issues and what Wells

Fargo Goldman Sachs just worn both of

them together and I'm going to show you

another chart that's a little scary but

before I do that I want to just quickly

show you what the heck happened after I

shorted Tesla I was not expecting to

make a 50% return on my put on Tesla now

if you're part of the stocks and

psychology of money course or really any

of the courses not only do we go live

every morning where we talk about my

strategies and the trades that I'm

making you're welcome to join those at

meetkevin.com but the stocks and

psychology money one gets all of my uh

notifications for when I actually input

these this was a trade here I made 50%

on within 24 hours I was blown away by

this partly because the market really

took a little bit of a beating today and

I think the beating the market gave us

today is just a warning an early warning

of what Goldman Sachs is actually

warning us about in this video we're

going to reveal how they're actually

telling you to start buying Hedges and

they're going to tell you where to buy

those Hedges so we'll talk about that

but first I want to make a correction

because I made a little oopsy dupsies I

showed you in my going short Tesla video

the Goldman Sachs Financial conditions

chart well my notes were based off of

this chart right here however the

onscreen image was an old image that was

my fault and I was moving the mouse

around an old image using what was in my

mind of this data now it amazingly

aligned the same that's why I didn't

catch it but the fact of the matter is

the same but I'm going to correct it

because when I make a mistake I am going

to tell you I effed up and I effed up

and we're going to fix it because that's

what you got to do everybody makes

mistakes and you got to fix your

mistakes so what do we have here 2024

you can clearly see we go out to today

over here and what I want you to notice

is the plummeting absolute plummeting

that continues to plummet in the Goldman

Sachs Financial conditions index now

this is a combination of vix stock

prices bond prices real estate you name

it it is basically credit availability

it's basically a way of saying hey how

easy is it uh to to get money or uh to

to basically you know do things when it

comes to finance whether it's banking or

otherwise uh and again it incorporates

market conditions and so that's why as

the market was rallying after the

stimulus explosion throughout the covid

period you have this massive period of

low uh Goldman Sachs Financial

conditions this makes sense but what I

want to do right now is I'm just going

to block this section out because we

know when helicopter money is coming

obviously you're going to have low

Financial conditions so let's block out

when we're literally handing out money

to people for a moment I I think that

would be reasonable for us to do I know

some people are like don't make changes

don't make changes no no no no I I think

we should realistically get rid of that

now what I want you to do because you

can get a clear picture of periods of

time where yes we may have had

accommodative monetary policy like uh

quantitative easing we didn't have blunt

stimulus checks right so you go back and

how low are Financial conditions today

relative to history well the start of Co

was one all right well I mean okay we

know that was all related to co and

panic so let's cover that one up all

right so what do we have outside of

covid in terms of financial conditions

well we have a low in 2018 oops and we

have a low in

2014 those were periods where inflation

and I want to be very very clear about

this inflation was averaging averaging

folks

1.7% that's why the Federal Reserve came

up with the LIE although I guess as they

say it's only a lie if uh if you don't

believe it it's not as in other words

put another way uh it's not a lie if you

believe it right dang it and I believe

it I bought it hookline Sinker but

anyway they had this uh accommodative

policy of ah well you know we just want

inflation to average 2% and the idea was

really what can we do to prop up this

1.7 and so we had these loose Financial

conditions in 2014 and 2018 which are

supportive of low inflation but what do

we have right now when we look at the

recent 3month measures of core inflation

well we're sitting really between 3 to 3

and a half% of core inflation this is

bad and numbers are coming in worse not

better uh and again there were a lot of

people who are like I saw the second

wave coming and who knows maybe this

second wave will only be a 3 to six

Monon blip and it'll all go away but

I'll tell you there are a lot of people

who didn't see the second wave coming uh

to a lot of an extent myself included I

was not expecting to see a second wave

uh that was this sticky we expected

owner's equivalent rents for example to

just be an anchor that would bring down

inflation I did revise my opinion to

think okay it's it's just it's going to

take longer to go away but maybe the

line won't be straight down it'll be a

little bit more flattened out that is

sort of something like this you know you

get a little wider of a path down but

the problem with that is that's not

happening either you're actually getting

a reignition of inflation and this is

bad and this is what's leading now

Goldman Sachs and Wells Fargo to give us

big warnings about what might come next

so let's address that the very first

thing we get is a warning from Wells

Fargo and the warning from Wells Fargo

is very blunt they call it the

self-defeating prophecy of lower rates

and I wrote yeah this is really bad

basically uh but listen to this right

here in recent public comments Atlanta

Federal Reserve president boss uh uh

Federal Reserve president bosk were

counted informal discussions with

Business Leaders who were quote ready to

pounce at the first rate or hint of an

interest rate cut uhoh wait a minute

ready to pounce at the first hint of an

interest rate cut boy doesn't that sound

familiar that sounds like basically

everybody who's ready to buy electric

vehicles Solar Products houses expand

their business take up financing move

cash to stocks basically pile everything

in as soon as rate Cuts start well

that's a big red flag to the Federal

Reserve because some people well you

know might not want to wait for that a

lot of people might be all right we're

ready we're getting close all right aim

a lot of people like screw it boom let's

go let's spend well that props up the

economy it's one of the reasons we have

the Atlanta fed real GDP measure which

did come in lower today it came in at

2.3% but it's still well above where the

Federal Reserve expected we would be

this year most expected that this

economy would expand maybe 1 to 1 a 12%

this year and it's actually expanding

more part of this is potentially because

the Federal Reserve has been shouting

yes rate Cuts will come eventually for

the longest period in history at no

point in history have we ever talked

about rate cuts for this

long we've been talking about rate Cuts

since before rate Cuts started it's

scary and so that's actually been

propping up the economy because what's

happening is people are just spending

through it well that defeats the purpose

of what the Federal Reserve is trying to

accomplish sort of like I'll buy a house

now because I like that house and I'll

just refinance when rates come down

because we all know they're going to

come down well that self-fulfilling

prophecy defeats the whole point of

having rate hikes in the first place

well as a result of that Wells Fargo

suggests hey we are going to push back

uh our uh our penciling in of rate Cuts

but in my opinion they don't go anywhere

near far enough look at this they say

this does push the timing back somewhat

especially because inflation numbers are

incrementally higher in the back half of

the year we now have four rate Cuts

penciled in for 2024 with the first

occurring in June rather than may I read

this and I'm like what are you

absolutely smoking Wells Fargo and it

actually makes me concerned that you

have people on Wall Street who are

looking at what the Federal Reserve is

saying the Federal Reserve is saying

look three rate Cuts okay at the

beginning of the year with how low

inflation was plummeting I totally

agreed we're probably going to get more

than three rate Cuts probably okay but

this piece is not written at the

beginning of the year this piece is

written this week after we've gotten

multiple structurally higher inflation

reports and so again at the beginning of

the year if you thought yeah we'll get

more rate Cuts than three fair game now

for you to argue we're going to get more

than three rate Cuts you really have to

think something's going to break J or

well as Fargo here does not indicate

something's going to break they think

the fed's just going to basically have

four rate Cuts in the second half of the

year no freaking way my opinion is that

we should actually be at the opposite

side if they told us three at the

beginning of the year when inflation was

almost cured I mean we were ready to

declare Victory basically if they were

at three then they're probably at 0o to

two now there's no way you're still

sitting at three and obviously we're

going to get the rugging on the 20th of

March which is just 6 days away which is

also summer surgery day so but anyway

it's crazy March 20th is going to be a

problem because I think you're going to

get a fed that's going to remove at

least one rate cut in this one and then

they're going to see how the market

responds and guess what they're going to

do next in June they can rug you another

rate cutaway they can actually they

don't have to go incrementally super

bearish to absolutely destroy the

economy they could simply go all right

it's the March SCP meeting let's get it

down to two rate cuts and then in may

they hold and then in June they don't

cut either and they go let's get the

forecast down to one rate cut and just

see how the economy does is the economy

is still doing well or Jobs still

holding up so far jobs are still holding

up but you know what's not holding up

delinquency is now this is a nominal

figure but even if you factor in

inflation this figure is 40% higher uh

than the nominal figure before the

pandemic inflation if you assume

inflation's 30% we are now above

delinquency rates on all loans and

leases to Consumers Credit Cards and all

commercial banks by at least 10

percentage points compared to 2019

that's inflation adjusted you've gone

from 22.7 over here in uh billions of

dollars now to 32.1 and guess what it's

going straight up now that's actually a

scary line why is this so freaking scary

cuz look usually you have the Sabertooth

over here where it's like it goes up it

comes down goes up it goes down and then

you have to draw a trend line I don't

need a trend line over here this is

nasty enough it's basically

vertical now I know there's some

normalization here but this is not a

year-over-year percentage comparison

this is nominal millions of dollars now

we can change it we could easily change

it to a percentage comparison which is

fine and what do we see well the

percentage the rate of increase is

higher than what we've had an 08 but I

usually don't like doing that because

you did come out of a period where it

was basically impossible to have

defaults right postco so I like this

millions of dollars comparison and we're

basically skyrocketing like we did

during the recession and right after the

recession kind of weird but it's

something to pay attention to this

straight line usually happens in oopsy

dupsies times and what is that leading

to well it's leading Goldman Sachs in

part to say oh dear it's time for some

Hedges after all we have Goldman Sachs

here giving us three risk factors they

suggest the S&P 500 is at all-time highs

and we have exceptionally low volatility

measures this has a large potential for

a near-term draw down what a great day

for it to be March 20th but Goldman

Sachs thinks it's more likely actually

to be April who knows everybody's guess

is as good as anybody else's supposedly

anywh who the second risk they provide

is a tech draw down risk now the tech

draw down risk is simply that tech

stocks have rallied over 50% and

essentially there are plenty of cheap

options to hedge yourself with some of

these really elevated Tech names and

then of course you've got Tech risks or

just Chinese risks in general regarding

election catalysts leading to

potentially higher volatility with

stocks to uh with exposure to China okay

well where else do you have exposure to

China well nobody really cares about

nvidia's exposure to China anymore

because what's happened well nvidia's

exposure to China has just basically

frankly turned into doesn't matter it

just doesn't matter because well you

have so much other money coming from AI

but there are plenty other American

companies that have exposure to China

Apple Starbucks Tesla some of these

companies get 15 to 30% of their

revenues from China so yes Chinese risks

are actually real in the American

economy as well and this is absent like

China invading Taiwan another potential

risk and this is really just sort of

like a little sidebar tangent but

there's a fantastic piece today about uh

in Bloomberg actually about uh from uh

Bloomberg Economist here who suggest

that there is a flood of electric

vehicle production in China and although

this flood of electric vehicle

production in China making new cheap EVs

and sort of blowing up how many EVS are

produced probably won't affect the uh

the American Market directly because we

essentially prevent these Chinese

vehicles from being imported in America

which there's a limitation to that right

at some point if we can have a lot

cheaper cars by importing Chinese stuff

in the future and we have better

relations with China in the future

Chinese cars will come flood America at

some point in the future but doesn't

matter so much what matters is the

competition you're creating in all the

other Auto markets so again take a

company like Tesla they are competing

directly in both Europe and China as

well as other places around the world

with Chinese EV makers and China is

stimulating the snot out of these now

remember Tesla was one of the few

companies who negotiated that there

would be no Chinese ownership of the

Shanghai gigafactory that's really rare

usually the Chinese Communist Party

partners with corporations in China but

during these boom times they really

wanted Tesla to build out the

infrastructure for their own EVS so they

could basically well compete with Tesla

right it's like using your enemy to make

your own stuff a lot better that's kind

of what's happened and then no surprise

some of the the expansions of Shanghai

have started to uh stall a little bit in

favor of other companies getting

subsidized like byd now what's

fascinating here is having a partnership

with China sucks in good times but it's

good in bad times times are bad right

now for EVS so no partnership no subsidy

from the Chinese government for Tesla

oopsy dupsies but anyway this is just an

example of how China can affect you but

the uh Goldman Sachs team actually

recommends you buy volatility index call

options for April expiring at

$16 uh now I don't have a position in

the vix I might open one if I do I'll

send an alert to all the course members

in the stocks and psychology of money

group even if you don't want the course

content you just want to be part of our

course member live streams where we do

fundamental and technical analysis every

morning right after I close the market

morning live stream I go right into it

we usually do 30 to 40 45 minutes on

average of Q&A uh Deep dive analysis you

want to be a part of this it's a really

great way to enhance the changes that

we're seeing coming so check that out by

going to meetkevin.com that's also where

you'll see a link to the millionaire

Symposium event which is uh expected

well it's it's happening June 21st to

June 23rd and it is happening in Vegas

so Ben Malo will be there I'll be there

Ross Gerber will be there we've got some

more speaker announcements coming as

well so we're super excited to share

those with you and uh yeah anyway going

back to Goldman Sachs here they're

recommending volatility calls mostly

because they think the vix should go to

21.5 well I want you to see what the vix

looks like right now when we go over to

Weeble so jump on over to Weeble and

what do you have look at that Trend that

is a little bit of an oopsy dupsy why is

it an oopsy doopsy well because you've

got this perfect downward Channel we're

basically we're near probably in the

lower 30% of that channel and it's

probably primed for a runup especially

if we do end up getting that rugging

from the FED now by the way I use this

uh platform for trading as well oh look

my p&l this morning or today on on a

crap day too uh is up 24.6% that's great

the market was pretty red too but anyway

if you want to use this platform go to

metkevin.com

Weeble and you'll get up to uh 20 free

stocks worth between $3 and

$3,000 some of them could be fractional

some of them could be full so check that

out by going to metkevin.com Weeble

they're a partner of the channel and uh

we love Weeble we use them every single

day so if you haven't used them yet

metkevin.com Weeble I'll link it down

below as well

so we've got Wells Fargo freaking out

we've got Goldman Sachs showing us this

chart I mean look at this they're

suggesting that current levels of the

volatility index are sitting here I'll

move myself there you go are sitting

right here uh when their models indicate

we should be sitting at the red dotted

line and if we get any kind of drone pow

shock we should be up here at the red

dots so there is potentially an

opportunity to make a move on a vix play

now you can't play it directly through

the vix you'd have to use something like

uh I like to call it Vexy uh that's uh

svxy uh that is the inverse of this now

this starts getting a little tricky so

it's really a topic for a different

video but if you want to calls on the

vix you'd have to buy puts on vexi

svxy remember indices you can't directly

invest in you have to use a proxy like

you invest in the Spy to get exposure

for the S&P 500 or you invest in QQQ M

if you want to invest in the NASDAQ 100

index the m is basically the cheaper

version of QQQ uh and it's it's the same

thing essentially so read their

prospectuses it's not none of this

financial advice uh keep that mind I am

a financial adviser but none of this in

this video is personalized Financial

advice we talked about my sponsor uh and

uh I'm I I think I'm pretty transparent

here with my positions no vix positions

although I might open one tomorrow I did

close my Tesla short I expect likely to

reopen this but I do think after a 4.12%

drop today I I think there's a good

chance we're going to get a little bit

of a green bounce tomorrow which might

be the perfect time to go short again

going into Monday Tuesday obviously

that's it's trading but the other thing

to look at too is you look at look how

sensitive Tech is right now and this is

scary uh Adobe in after hours which

isn't even on that chart yet plummets

10% why does it drop 10% well it drops

10% on a bare like barely miss this was

rid ridiculous Adobe barely slightly

missed on their forecast they actually

beat on their earnings and they slightly

missed on their forecast net revenue and

what happens the sucker's down 11%

that's not even fair why though because

things are probably a little overvalued

you want to know a company that beat

across the board and then you want to

know what happened to the stock Ulta

Ulta beat across the board but they made

one mention suggesting that Beauty has

gotten more

competitive and even though their

guidance was in line their indication

that beauty was getting a little bit

more competitive despite beating was

enough to send this sucker down 6.7%

here in after hours that's crazy why is

this happening well it's happening

because these stocks have gone to Crazy

all-time highs look at them this isn't

sustainable this is the week chart for

Ulta now we're going to pull that right

back down to 527 uh in after hours right

here so you have a red Candlestick going

down to my mouse over there tomorrow but

who cares look at this sucker anyway

it's crazy it's all gone straight up

that actually increases earning

sensitivity and that is particularly

what makes me actually more nervous

about a company like Tesla the more

sensitivity you have in the market the

more even a slight Miss can absolutely

destroy a stock and this is one of those

times where I mean just look at the um

uh greed or fear index I love doing this

okay you look at greed or fear index you

know how they say be fearful when people

are greedy and be greedy when people are

fearful we are just barely off of

extreme greed right now Market momentum

extreme greed stock price strength

extreme greed stock price breadth which

means the number of stocks going up

extreme greed putting call options the

ratio between the two greed vix neutral

although it's real it's neutral at a low

level so frankly that should be greed

you've got uh uh you know junk bond

demand at extreme greed and some other

levels this is you know I I I love it

when I when I see people they're like oh

you know uh Kevin told us nine days ago

he's going to cash and then he sold some

positions and people are like oh he's

just fearful really the entire Market is

full of freaking greed absolutely full

of disgusting illustrious greed call me

when the sucker is back at extreme fear

and they going to take my cash and plow

it in but we ain't there right now and

frankly I think there is a real

possibility unless the economy crashes

which if the economy crashes rates are

going to get cut really fast no doubt

about that but as long as GDP and jobs

stay the way they're moving and

inflation keeps doing this nonsense

where it's structurally

stagnating we might get rate Cuts this

year for those of you listening that's

zero yeah I mean think about what we got

inflation whacked us over the last three

months JP removed

fate and there's no jobs recession so

it's like and I mean the banking crisis

is somewhat limited yeah I mean there

are problems in the banking crisis look

I've been reading about this as well you

know fewest Banks posting earnings gain

since 1997 a lot of this could be based

on the fact that FDIC is trying to claw

back money from all the expenses they

had during the banking crisis of last

year so they're trying to get some of

their money back so there are definitely

issues we want to pay attention to with

the banking crisis and I'm watching it

very closely especially now that the

bank term funding program the facility

has closed but holy

smokes I don't know man I just want to

be so transparent and I know people are

like wait how could you how could you

change your opinion well the true

supporters of my channel realize I

change my mind when the data changes

when the facts change CH I I'm not here

to say everything I do is perfect but

when the facts change uhuh man uh-uh bye

it's very simple I do the same thing in

business and that's very very important

if something's working great I'm going

to keep doing it if I got a great deal

in real estate with house hack I'm going

to pursue that sucker until I close that

deal and we're going to rent it out it's

going to be beautiful stabilized

building if some if the facts change and

some seller is trying to defraud me and

they're like oh yeah it's 2% vacant and

then I actually do my due diligence and

it's 30% vacant F you I'm not buying

your crap anymore at the price we agreed

to because you changed the facts

everybody should do that everybody do

not get emotionally attached to things

if you want to learn more about my

housing startup I away go to

metkevin.com I'm sorry no it's not

metkevin it's house act.com

2024 uh if you're an accredited investor

you can invest in the startup and then

uh we are responding to all the emails

that we're getting for people interested

in the mini fund uh 1031 option uh that

will be launching soon which is really

kind of cool and that'll be a precursor

uh to uh essentially enabling people to

1031 from Real Estate into a stock which

is insane that you can do that uh kind

of wild anyway thank you so much for

watching uh let me know what you think

in the comments down below and we'll see

you in the next one