Get ready for the latest bombshell in the world of finance! In this breaking news video, we'll be diving deep into the Silicon Valley Bank fiasco that has forced the Federal Reserve to consider a major pivot.
From the stunning revelations to the potential implications for the tech industry, you won't want to miss this exclusive report. So buckle up and join us as we uncover the shocking details behind one of the biggest financial scandals of the year!
From the stunning revelations to the potential implications for the tech industry, you won't want to miss this exclusive report. So buckle up and join us as we uncover the shocking details behind one of the biggest financial scandals of the year!
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NewsTranscript
00:00 Two out of the three largest bank failures in US history have occurred in just the last
00:06 couple of days.
00:08 What is this going to make Jerome Powell and the Fed do?
00:11 They wanted to raise 50 basis points.
00:13 Now they're put right in the middle of this crazy mix.
00:17 I'm Gav Blacksburg, aka Wolf Financial.
00:19 I'm here with Evan from Stock Market News.
00:22 Before we get into this video, make sure that you're subscribed to the channel.
00:24 We have important updates coming every single day this week.
00:28 And give this video a like.
00:29 Let's get into it and start out with how we even got here.
00:32 Evan, let me turn it over to you.
00:34 Yeah, we're going to give you the latest updates on the Silicon Valley Bank situation.
00:40 The federal government, FDIC, Department of Treasury, and the Fed did come out with an
00:45 announcement last night talking pretty much, you can see it on the screen here, but most
00:49 of it is towards the bottom, which you want to read in this one, that they're going to
00:53 protect all of the people who had money at the bank.
00:58 No losses from this will come from the taxpayer, which will, do you know how the stuff is going
01:03 to be paid for on this one?
01:04 I know we talked about that a little bit before, but you know where it's going to be coming
01:07 from?
01:08 Yeah.
01:09 So per Biden, there is a pool of insurance money that banks pay into either on a quarterly
01:14 or yearly basis.
01:15 And it's supposed to be a stockpile for events like this.
01:18 Right.
01:19 And I believe that it was taken into much larger concern following the 2008 crises.
01:24 And so the idea is that this money is going to be pulled from that stockpile.
01:28 However, we have a lot of questions.
01:29 How much money is in that stockpile?
01:31 Can they realistically pay this off?
01:32 Are the banks going to be happy with them taking it from there?
01:34 Because of course, this, you know, is affecting many banks, kind of widespread, but there's
01:38 only a couple that have officially shut down.
01:41 And how do they replenish those funds?
01:43 Does this end up being QE?
01:44 There's so many questions, but per Biden, that is where they're saying the money is
01:47 coming from, not from the taxpayer, but from the bank's own insurance funds.
01:52 Okay.
01:53 And if you go over to the next slide, I thought the more unexpected news that we didn't see
01:57 come in was, if you read at the top, Signature Bank was also shut down.
02:02 Signature Bank is pretty big in New York and a lot of people knew about it.
02:05 It was one that I knew of as well.
02:07 So that's really interesting.
02:08 And I also thought in this, that second sentence talking about shareholders and certain unsecured
02:14 debt holders will not be protected.
02:16 So a lot of the common stock shareholders who were owning those shares literally saw
02:20 them go to zero.
02:21 If you had bought some of those stocks a year ago today and held to right now, you would
02:25 literally have zero dollars.
02:27 So from $300 to zero real quick.
02:32 I thought that was pretty fascinating.
02:34 And if you go over to the next slide, there was also some news this morning that HSBC
02:39 is going to be buying the Silicon Valley Bank's UK subsidiary for one pound.
02:45 They're going to inject about $2 billion of liquidity into it, and they're going to protect
02:49 all of the people and money at that bank as well.
02:52 So there is some money being involved, but the assets, the value of it, the terminal
02:57 value of literally just one pound.
02:59 Yeah, pretty crazy to see it being valued at that.
03:02 In addition, on what you were saying beforehand, certain banks like First Republic, I mean,
03:07 even as early as Friday, I believe, or Thursday, people like Jim Cramer were saying that this
03:13 was a great buy.
03:14 It's down 70% plus today.
03:16 So the situation certainly has escalated very quickly.
03:19 There was also some news from Goldman, and it seems like every bank has a different take
03:22 right on what's going to happen at this FOMC meeting.
03:25 Yeah.
03:26 So I think switching up to what we were kind of talking a little bit about to start is
03:29 how this is going to affect Jerome Powell, the Fed, and what they're going to do going
03:34 forward.
03:35 Goldman Sachs kind of came out when this was the first person that switched off.
03:38 You know, when Powell spoke in front of Congress last week, it kind of became the market expectations
03:44 for him to raise 50 basis points.
03:46 And we'll kind of see that a little bit going forward in the video.
03:50 But that was walked back pretty quickly over the weekend.
03:53 Goldman Sachs is now saying that he will not raise rates at the next meeting.
03:57 They did say that they do still think the Fed will raise rates going forward.
04:01 Still about 75 basis points of rate hikes coming, but a pause and maybe a little bit
04:05 of more a wait and see.
04:06 If you go over to the next one as well, Barclays came out and said pretty much a very similar
04:11 thing.
04:12 Goldman Sachs was last night.
04:13 Barclays came out later today.
04:15 So that was Sunday night and then Monday during the day for Barclays.
04:19 And what I think is also equally as interesting here is that literally tomorrow we do have
04:23 CPI.
04:24 So CPI, this one will be about data from the month previous.
04:29 So February, we're not going to really see the impact of this whole dilemma that's been
04:33 going.
04:34 We have to wait a full another month for that.
04:35 So even if the Fed, whatever information we're about to get, it's going to be kind of for
04:41 not and we're going to have to wait for the month after.
04:43 So Fed is in a very difficult point and you can kind of see why they're saying pause,
04:47 wait and see.
04:48 Let's see how the banks are going to impact inflation.
04:52 I was talking on a space earlier and it was pretty clear that everyone is kind of in that
04:57 camp that this was a very deflationary event.
04:59 And you can tell that makes sense.
05:00 A lot of people are scared and not spending as much.
05:04 So that's pretty fascinating.
05:06 I know I said a lot right there.
05:07 Is there anything kind of on this topic before we go and look at that?
05:10 You pulled up the history of how inflation has been going over the last couple of months.
05:15 This is CPI year over year.
05:17 I do love to look at kind of the history of it and how we've been going.
05:20 I can really see that pick up in 2020 and 2021 really.
05:24 And then you can kind of see the pathway we've had coming down, being a little bit slower.
05:28 But yeah, Wolf, anything I just said there that's on the screen right now?
05:32 Yeah.
05:33 Again, it really matters where the money is coming from that is going to secure these
05:38 deposits.
05:40 And does it end up being QE basically, which is a massive round of money injection into
05:47 the market and into the economy?
05:50 And how does that affect the inflation?
05:52 So we've successfully been coming down.
05:55 You can see all the way since we peaked in June.
05:57 So that's several months of down months in inflation.
06:00 And we're expecting to continue that trend, perhaps a 6.2 or 6.3 print for February here.
06:08 However, what if that turns around?
06:11 What if we get a higher print, right?
06:13 After several months of coming down, that could be really dangerous for the market.
06:17 So like yourself, I'm just kind of watching and waiting as well.
06:21 And then we do have some of those CPI estimates here if you want to cover those.
06:24 Yeah.
06:25 So you kind of saw where we were coming from last month was 6.4.
06:30 And now Wall Street, the median estimate is 6% here.
06:34 You can kind of see how far each one is.
06:36 The top one is at 6.1.
06:38 The lowest one is at 5.8.
06:41 Not really that far of a range.
06:42 I expect next month's one will be a lot wider.
06:46 And as I was just saying, you know, is all this information going to be for naught when
06:50 we have the next month's information with all this impact, with all this craziness going
06:55 on?
06:56 So definitely something to keep an eye on and kind of waiting for.
06:59 I wonder if whatever move we get off of the number we get might just be walked back because
07:04 we're just kind of waiting for the month ahead.
07:06 But I know on the next slide, we had some interesting data here.
07:10 The first one.
07:11 So this is right after Jerome Powell was speaking in front of Congress.
07:15 Kind of what you can see the 500 to 525, that was a 50 basis point rate hike.
07:21 And you could still see there was two more rate hikes coming after that, both 25.
07:24 So this is showing 100 basis points of rate increases coming.
07:28 And if you just quickly go over the next one, we can kind of go back forth between them
07:32 a little bit.
07:33 And it is calling for a 25 basis point hike and that being the top, which is pretty interesting.
07:41 We'll see how that one develops, but you can definitely see that the pathway being pretty
07:45 different and how quickly that could change.
07:48 So any thoughts on this one?
07:50 It's so different.
07:52 It's crazy how quickly these Fed Fund futures can swap.
07:55 Yeah, we were talking about this even before all this stuff started with the banks.
08:00 We were in fact on Spaces last Wednesday, Thursday area, and we were saying, hey, the
08:05 Fed, you know, they don't know what's going on either.
08:07 Right.
08:08 They adjust based on one month of inflation data and they switch around their ideas.
08:11 And just to give one more look at it, this was the previous data set.
08:17 And then this is the post.
08:18 Right.
08:19 And so kind of just seeing where those meeting probabilities are going.
08:22 It's fascinating.
08:23 And it could totally change within three, four days from now as well.
08:27 Right.
08:28 It's a crazy data set.
08:29 Yeah, exactly.
08:30 It can literally happen tomorrow.
08:31 We have CPI coming in that could change this so much.
08:35 What happens if we get a hot CPI number?
08:37 Will the market kind of just ignore it and be like, as I've been saying here, well, let's
08:41 wait for next month.
08:42 We're going to have a deflationary force, banks collapsing, or does it actually take
08:47 it seriously?
08:48 That would be quite the situation we end up in.
08:52 But looking forward.
08:53 Yeah.
08:54 I was going to say, let's get into a couple of these quotes.
08:55 No, I thought this is one is a little bit more of kind of investors and outside people,
09:01 what they thought and kind of what their conversations were.
09:03 We'll probably go through Kathy and Bill Ackman.
09:05 But Kathy said that she expects the Fed or wants the Fed to pivot based on deflationary
09:10 forces.
09:11 And it's kind of funny when I say I was kind of saying the similar thing here on the second
09:14 part, but continues to focus on lagging indicators.
09:17 Now we're about to find out about inflation from last month, not what just happened.
09:22 But yeah, I don't know if they're going to quite pivot.
09:25 That is very strong language and it probably would suit Kathy Woodstocks.
09:29 I can't see that one happening.
09:31 But yeah.
09:32 Yeah, doubtful we're going to get that full on pivot.
09:34 But there was a really interesting, now several interesting tweets that have gone out from
09:38 Bill Ackman over the last couple of days.
09:40 We had the chance to be on Spaces with Bill Ackman as well and get some of his thoughts.
09:44 And he pretty much nailed what had to happen here because he was calling for instead of
09:50 he wasn't quite pulling a Jason, calling for pandemonium.
09:53 But he was stating that before market open, the government had to intervene and ensure
09:59 that all deposits were guaranteed to be able to get their money.
10:04 Otherwise things were going to go to hell pretty much.
10:08 And he was right.
10:09 And, you know, that is what ended up happening.
10:10 So we have this tweet from him just kind of running through a little bit of his thoughts
10:13 on the economy and what has to happen here and what could be, you know, a decline in
10:17 rates could make this a better investment.
10:19 So do you have any thoughts from this tweet that he put out?
10:23 My main thought with his tweets, first of all, great information.
10:27 But if you know that thread where it's like, that's just too much, you know, I'm really
10:30 happy for you, or I'm really upset for you.
10:32 That's kind of how I feel.
10:34 I don't like threads, but I do not like this more.
10:36 So it's a little bit of an interesting one.
10:39 Not too many thoughts here.
10:41 You know, he's been talking a lot and we'll see how it goes.
10:45 And yeah, it is cool to see these people come on Spaces and be able to actually kind of
10:49 talk and share their thoughts with the people.
10:51 And yeah, and then there was this Michael Burry one, he loves to retweet or tweet something
10:56 and then delete it.
10:57 And Gerg actually had a really funny quote on this one where he like, Michael Burry has
11:01 predicted two out of the last 57 crashes.
11:04 Did I botch it there?
11:06 Yeah, it's something along those lines, two out of the last 40, you know, downfalls because
11:12 he's always calling for it and then deleting it and then coming back.
11:15 I don't think this guy's coming on Spaces anytime soon.
11:17 But yeah, like you can see, he is calling for another big fall here is what it looks
11:23 like, right?
11:24 Yeah, we'll have to wait and see on that one.
11:28 But overall, I appreciate everyone for this video.
11:31 We're trying to get at least one video out every single day this week, 10 videos this
11:36 month and this is kind of just not the start.
11:38 This is not something that we're going to be doing one time.
11:42 This is just the start of something big and if you enjoyed the video, so like and subscribe
11:45 and anything else you want to add Will?
11:47 Yeah, not spot on.
11:49 There's a lot that's gonna be happening this week.
11:51 This is a evolving situation.
11:53 So it's important to stay in the know.
11:55 You want to be safe, protected with your money that's in the bank, your money that's in the
11:59 market and we're coming daily delivering this for free.
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12:06 Give the video a like.
12:07 Come check us out on Twitter where we're live pretty much most of the day and we'll see
12:11 you in the next one.
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