Hello Folk. What is going on? Viewers of the tube. My name is Tyler and I’d like to introduce you to the channel that keeps it as funky and isolation and quarantine as this grandma. You know how we sked dance. It’s time for Chico. Krypto. Well, it’s been a few days since I’ve seen all your faces and since I shot today’s video, Monday’s video all the way back last week on Friday. It’s hard to assume what has happened with the markets traditional and crypto, but we can look to see what happened as of Friday last week. Well, the Dow Jones stock market started to look like the crypto market’s volatility. Massive single green candle pumps and in three days brought it up nearly 4000 basis points. The strongest rally since the Great Depression in 1933. But as of Friday, the rally had to be put on pause, which I’m sure got investors, hedge fund managers and financial analysts shaking in their boots because the stops have all been pulled out. My friends, the Fed and the US government, including the Treasury, doesn’t have any ammo left. They created three new SPV special purpose vehicles, which we talked about last Friday. 4.5 trillion dollars is available for the banks and the corporations and the Fed funds rate will have to be dropped into negative territory if slashed any further. So what is going on with finance? One point zero. Did today pump or dump? Well, we need to look back to something. The financial crisis in 2008, because similar things happened back then like the collapse and bailouts and the creation of F.P.. These happened in March of 2000, a March 11th, 2008. Federal Reserve and other central banks announce specific measures designed to address liquidity pressures in funding markets. And from the announcement, the Federal Reserve announced today an expansion of its securities lending program. Under this new term securities lending facility P S L F and S P V well, what happened after the announcement of this SPV to the Dow Jones on the day March eleven pump in that pump lasted for about a month, but eventually back down like Charlie Brown. That downward pressure kept up for over a year. Yes, a year, you guys, where the Dow went from around 11000 basis points to six thousand six hundred and twenty-six points at the low, a loss of basically 50 percent back then. During that time, it felt like the sky was falling out from under investors. Have we felt like that so far during present times? No, not yet. And that is why I believe finance one point zero in the stock market hasn’t felt the full brunt of this bear market. It’s still to come and it possibly could have started today. But this isn’t all about the stock market. I mean, stocks. They are for the big boys. Your average Joe or Jill is an invested. I mean, look at stock ownership since 2008 to today has fallen from 62 percent of Americans to 55 percent. You have the stock market has pumped significant gains to be had and getting stocks is easier. Robinhood app, cash app and more. That doesn’t make sense, does it? So who are the 50 percent that doesn’t own stock? Well, those are the people who don’t have that killer White-Collar job with a four or one K. Just check out the percentage of Americans who have for one case. It’s about 50 percent. So corporate America is economically forcing their worker’s slaves to invest in stocks. So if you didn’t know half of America is a corporate Shachar workforce and the other half of America is small to medium-sized businesses who do not have four or one cases for their employers. So we have a major disconnect going on where the corporate workers, half of America saw the great gains in the stock market, while the blue-collar, hard-working America and for the most part didn’t. But for that half of America, what are they limited to economically if they aren’t in the stock market? Well, they could get Krypto, but a majority are just using bangs. And that is what we need to talk about right now as the stimulus bill gives them a dark and dirty toolbox. So smaller banks have under 10 billion in assets. They have been given something just a sweet. Their leverage ratio has been reduced from 9 percent to 8 percent until the end of the national emergency. That previous regulation of keeping it at nine percent regarding banks leverage ratios were put in place following that 2008 financial crisis as a way to better ensure that they would be prepared to cover. Loan losses should the need arise, and this ratio specifically measures the core capital of a bank relative to its assets. So for an easy example, if a bank lends out one hundred dollars and has ten dollars of capital held in reserve to cover possible losses in that loan pool, its leverage ratio would be 10 percent and divided by 100 hundred. Now, the higher the leverage ratio, the safer the bank, the lower the riskier. So dropping it to eight percent means we have a shit ton of risky small and community banks across America. So what about the big banks, the big bankers? While these financial institutions like JP Morgan, Goldman Sachs and more, they get a sweet pass to even sweeter. They’re allowing all financial institutions to suspend troubled debt restructuring as there is going to be a ton of troubled debt coming out of this. And it allows financial institutions to delay implementation of the Financial Accounting Standards Board’s new current expected credit losses rule, meaning they don’t have to account for much during this whole crisis but get to run willy nilly, which is amplified by the more fine print. Banks, specifically the national ones, have their lending limit waived for the duration of this crisis. They will get to lend as much as they please. But remember, I said things get nasty with the banks if they get disgusting. They are modifying the brick in Dodd-Frank Act, the act drafted in 2010, the longest piece of financial regulatory text in history to stop these sons of bitches from ever doing 2008 again. So what are they modifying while they’re giving the FDIC the power to establish a temporary program to guarantee the banks that temporary, which if you understand the government and when they say temporary, they usually mean forever. Remember Nixon taking us off the gold standard? Accordingly, I have directed the secretary of the Treasury to take the action necessary to defend the dollar against the speculators. I have directed Secretary Connally to suspend temporarily the convertibility of the dollar into gold or other reserve assets, except in amounts and conditions determined to be in the interest of monetary stability and in the best interest of the United States. So what is this forever program? In my opinion, to guarantee bank debt? Well, it was first brought forward in 2008. Hey, we’re bringing it back. And it’s called the Temporary Liquidity Guarantee Program. And to get this program going, the Federal Deposit Insurance Corporation, FDIC and the Federal Reserve invoked it. And the secretary of the Treasury approved the use of the systematic risk exception under the Federal Deposit Insurance Corporation Improvement Act of nineteen ninety-one. And under the guidance of the systematic risk exception, FDIC implemented two programs. A Debt Guarantee Program DCB, which extended the FDIC, is guaranteed to newly issued debt instruments of FDIC insured institutions that are holding companies and their eligible affiliates. And the transaction account guarantee program he a g p which provided unlimited deposit insurance coverage of non-interest bearing transaction accounts. So these two programs are revived today and the FDIC insurance covers all the new loans and debt the banks get to run willy nilly with. Who covers this? If the bank’s job, the taxpayers are. Yes. The FDIC always boast that they will cover bank runs without taxpayer money from their Web site. The FDIC received no congressional appropriations. It is funded by premiums that banks and thrift institutions pay for deposit insurance coverage and from earnings on investments in U.S. Treasury securities that FDIC ensures trillions of dollars of deposits in U.S. banks and thrifts, deposits and virtually every bank and thrift in the country. But if you look into the fine print of these programs, like in 2012, when the Transactions Account Guarantee program was investigated, you see the truth on page 10. They talk about the potential impacts of this program. If it was extended, it read, some have raised concerns about what effect an extension of tag would have on the FDIC Deposit Insurance Fund EAF. Under the program, as established by the Dodd-Frank Act, TAG insurance functions as part of the FDIC traditional insurance for risk-based insurance system to function effectively. The entity setting the insurance premium must accurately forecast future risk or be able to recoup losses ex-post. If the FDIC can successfully estimate the future costs that tag funds would impose on the D-I app, then the premiums could be set to cover. They expected losses. However, problems may arise if the insurance is underpriced due to an underestimation of those future losses. If future losses caused the DHS to become depleted, the DHS may have to borrow from the Treasury to protect depositors, putting taxpayers at risk. So my friends, we the citizens are the last leg regarding saving the banks. Now, if the banks make bad loans, that banks overstep. If the banks lose at all, that taxpayer is now on the hook. It’s a bank bail and not bailout. But this craziness is the case for bitcoin and crypto bitcoin. And defy turns you into your own bank where you control the flow of funds, where the funds are allocated into interest-bearing accounts and using your funds as collateral. Reaping the rewards of which in the past the banks did. So, my friends, we are all on the hook as American taxpaying citizens for this. But we don’t have to contribute to their addictions for cash as if we put our money in their bank. They’re going to use it as collateral and make money. They’re already getting four trillion dollars from the federal government. So when the FDIC decided to say this, we’re living in unprecedented times at a time when a pandemic like this, it is way too easy to get confused and to have fear about what you should be doing with your money in your account, especially as you’re looking to volunteer at the volatility in the stock market and the financial sector. This is what I would like you to take away from this. Your money‘s safe at the banks. The last thing you should be doing is pulling your money out of the banks now, thinking that it’s going to be safe for someplace else. You don’t want to be walking around with large amounts of cash and you certainly don’t want to be hoarding cash in your mattress. It didn’t pan out well for so many people. And I will tell you this. No depositor has lost a penny of their insured deposits since 1933 when the FDIC was created. So if you’re talking about having your money in a safe place, please keep it in an FDIC insured name. I was like, oh, snap. They’re getting scared as banks don’t have the cash. New rules. They only half have 8 percent reserves on hand. So it’s 8 percent of the US population decides to run on the banks. Ninety-two percent of people can’t and will not be able to get their money out. They pleaded that on the 24th of March 25th, they made a new plea showing that counts. They cover up to 250 KW. Then the same day they retweeted an FDIC bank who is probably having bank run issues. Their post about how cash is dirty, unsafe, unclean and will only be safe with them. Then on Friday, they posted. Banks don’t have to report to them this entire month. The FDIC, in coordination with other federal banking agencies, announced a 30 day grace period for filing first-quarter call reports for banks that may need additional time due to staffing priorities or disruptions as a result of Cauvin 19. So the banks, no frickin oversight right now. And FDIC is in the dark about how bad things are getting regarding their cash reserves. I’m getting my money out of the bank. Cash I can survive with gold as a hedge and BDC cerium and altcoins. They’re holding nicely on my ledgers. Cheers. I’ll see you next time.