Speaker 1: An illegal alien from Guatemala charged with raping a child
Speaker 1: in Massachusetts. An MS thirteen gang member from Al Salvador
Speaker 1: accused of murdering a Texas man of Venezuelan charged with
Speaker 1: filming and selling child pornography in Michigan. These are just
Speaker 1: some of the heinous migrant criminals caught because of President
Speaker 1: Donald J. Trump's leadership. I'm Christy nom the United States
Speaker 1: Secretary of Homeland Security. Under President Trump, attempted illegal border
Speaker 1: crossings are at the lowest levels ever recorded, and over
Speaker 1: one hundred thousand illegal aliens have been arrested. If you
Speaker 1: are here illegally, your next you will be fined nearly
Speaker 1: one thousand dollars a day, imprisoned, and deported. You will
Speaker 1: never return. But if you register using our CBP home
Speaker 1: app and leave now, you could be allowed to return legally.
Speaker 1: Do what's right. Leave now. Under President Trump, America's laws,
Speaker 1: border and families will be protected.
Speaker 2: Sponsored by the United States Department of Homeland Security.
Speaker 3: The first thing that we have to talk about is
Speaker 3: the biggest thing that has happened last week, Silicon Valley
Speaker 3: Bank collapsed. We'll give some some preference on this, but
Speaker 3: this is the second bank to collapse in a week,
Speaker 3: one of the biggest bank crisises in American history. Yep,
Speaker 3: and this was the biggest bank to fail since two
Speaker 3: thousand and eight. What pretty much caused it, at a
Speaker 3: very high level explanation is they didn't have enough money,
Speaker 3: so they over leveraged themselves. You know, when when the
Speaker 3: Fed raised interest rates, they were invested in bonds and
Speaker 3: mortgage backed securities that didn't work out for them, actually
Speaker 3: lost money, and they announced that they needed two billion
Speaker 3: dollars to remain solvent. When they announced that they needed
Speaker 3: two billion dollars to remain solvent, there was a rush
Speaker 3: on the bank. Obviously, people were scared, like money, my money.
Speaker 3: They didn't have enough, so then the fdi C has
Speaker 3: to step in, and now they're working through that. They
Speaker 3: said that everybody that has was fdi C insured will
Speaker 3: have their money, well had their money today, and then
Speaker 3: everybody else they're working on within the next week. So
Speaker 3: it was a very in this bank. A lot of
Speaker 3: people have not heard of, but it's one of the
Speaker 3: biggest banks in America eight I think it's eighteenth biggest
Speaker 3: bank in America or something like that around that. So
Speaker 3: it was geared towards Silicon Valley, right, it was geared
Speaker 3: towards startup companies and benture capital firms, and these are
Speaker 3: the places where these guys went to borrow money and
Speaker 3: to get capital from. So it's not like a regular
Speaker 3: bank where you just go in like Chase Bank and
Speaker 3: you just put one hundred dollars and open an account.
Speaker 3: But you know, it's it's one of these things that
Speaker 3: that was disturbing and the causes you know, eyebrowns every raised.
Speaker 3: So yes, so all right, so what's the impact on
Speaker 3: this going forward? What's the impact on the stock mar
Speaker 3: because all the bank stocks lost money as a as
Speaker 3: a result of this, so it was like a ripple effect.
Speaker 3: So what's the take on this SVB situation?
Speaker 4: We I talked about it at the live show. But
Speaker 4: risk to reward means everything. So if I came to
Speaker 4: anyone and said, hey, I'm going to loan out money
Speaker 4: to start up companies that have between one hundred one
Speaker 4: to one hundred employees, the net margin is anywhere from
Speaker 4: three percent to fifteen percent, and I'm going to try
Speaker 4: and offset it by investing in bonds and mortgage backed securities.
Speaker 4: Instant fail like this is the worst business plan ever
Speaker 4: and they're over capitalized. We'll talk about it later, but
Speaker 4: I think the ANGEL and VC environment has to change
Speaker 4: dramatically because they're funding all of these companies.
Speaker 5: Think about I mean just want to add to you
Speaker 5: what you're saying for because that's a great point when
Speaker 5: we think about the time period of when these loans
Speaker 5: are taking place.
Speaker 2: Yeah, low interest.
Speaker 5: Rates, right, so hero right, we're talking about the lowest
Speaker 5: interest rates. And if we've watched the market, right, we've
Speaker 5: seen what interest rates being raised has done to tech companies. Right,
Speaker 5: So think about now when you have low interest rates
Speaker 5: and you're giving loans to tech companies, when of those
Speaker 5: interest rates rights, there's going to be an inverse effect.
Speaker 2: I started losing, right.
Speaker 5: So like the pandemic, we saw all these startups, right,
Speaker 5: we saw all these these companies IPO, we saw a
Speaker 5: bunch of SPACs. Pandemic is over in the past. Yeah,
Speaker 5: interest rates have risen. Now it's not you're starting to
Speaker 5: see these these these effects. Obviously we see it from companies,
Speaker 5: but now you see it from a bank. It's like yo,
Speaker 5: here it comes right. These are delayed reactions to some
Speaker 5: of these decisions like the Federick getting raised. It's like, oh,
Speaker 5: it sounds great. Always a quarter point, always, three quarters
Speaker 5: of a point always. I mean it's like after a while,
Speaker 5: it's like, wait, what is the long term effect?
Speaker 2: Chris? We don't see it in the short term.
Speaker 4: I mean, and they're swooping under the rug. I said it,
Speaker 4: but I think it's interesting. They announced this news the
Speaker 4: weekend of the oscars. So now you see Brad Pitt
Speaker 4: hopefully you know nobody gets slapped on stage, right. They're
Speaker 4: going to recover it again on Monday about what happened.
Speaker 4: But so you're kind of swooping it under the rug
Speaker 4: to soften the blow post announcing midweek or Friday morning.
Speaker 4: Then on top of that, yelling ha announced that the
Speaker 4: government is not going to build the bank out. Oh
Speaker 4: so the long term effects is like a lot of
Speaker 4: banks are going to go under any it sets up
Speaker 4: for JP, Morgan, Bank of America, the Big four to
Speaker 4: become even bigger.
Speaker 5: Right, because you think in terms of like, yeah, there's
Speaker 5: money there people who are insured, but you're going about
Speaker 5: to lose all those customers.
Speaker 2: Yes, and so if you're losing customers, they're gonna have
Speaker 2: to go somewhere and you need safety.
Speaker 4: I mean, people was telling me earlier, like it was
Speaker 4: some memes going around about risk mitigation, Like the risk
Speaker 4: management team was like throwing water at a fire that
Speaker 4: sort of thirty third floor and he's throwing water on
Speaker 4: the first floor. It's like all of these companies that
Speaker 4: got funded, most of them weren't even profitable. Like if
Speaker 4: you look even at the acquisition of Slack, and this
Speaker 4: won't affect the tech like Microsoft matter, it won't affect them,
Speaker 4: but like smaller companies that are getting started, it's gonna
Speaker 4: affect them dramatically. But even take Salesforce paying two billion
Speaker 4: for Slack, and then the team of Slack, the management
Speaker 4: team wasn't using Slack teave and communicate on a day
Speaker 4: to day basis. They was using what's happened telegram Like
Speaker 4: it was just insane. And I hate to say it,
Speaker 4: but this is like the leaning of this generation.
Speaker 2: Yeah, and it's tech driven.
Speaker 5: I mean, the unfortunate part is that some many startups
Speaker 5: do employ people, right, and so now if the company,
Speaker 5: if the bank is dissolved, the right thing about the
Speaker 5: payroll of those people who are to make pyroll.
Speaker 2: It's over.
Speaker 4: Hopefully a bridge, loan or something will be given, but no,
Speaker 4: it's going to be over and we have to be
Speaker 4: very honest like when things earners.
Speaker 2: What's up?
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Speaker 1: An illegal alien from Guatemala charged with raping a child
Speaker 1: in Massachusetts. An MS thirteen gang member from Al Salvador
Speaker 1: accused of murdering a Texas man of Venezuelan charged with
Speaker 1: filming and selling child pornography in Michigan. These are just
Speaker 1: some of the heinous migrant criminals caught because of President
Speaker 1: Donald J. Trump's leadership. I'm Christy nom the United States
Speaker 1: Secretary of Homeland security. Under President Trump, attempted illegal border
Speaker 1: crossings are at the lowest levels ever recorded, and over
Speaker 1: one hundred thousand illegal aliens have been arrested. If you
Speaker 1: are here illegally, you you will be fine nearly one
Speaker 1: thousand dollars a day, imprisoned and deported, you will never return.
Speaker 1: But if you register using our CBP home app and
Speaker 1: leave now, you could be allowed to return legally. Do
Speaker 1: what's right, leave now. Under President Trump, America's laws, border
Speaker 1: and families will be protected.
Speaker 2: Sponsored by the United States Department at Home Mad Security.
Speaker 2: Everything was right, And I said it before.
Speaker 4: They're gonna let us get money in twenty twenty for
Speaker 4: the disaster that's going to come. You have to check
Speaker 4: the financial soligncy score of your bank. That just mean
Speaker 4: is your bank have a high probability of going broke?
Speaker 4: Google it called them up acting with the scores. If
Speaker 4: they won't tell you what the score is, probably should
Speaker 4: take your money out.
Speaker 2: Yeah. Yeah.
Speaker 3: And then also what we talked about on stage yesterday,
Speaker 3: well stage Saturday, about this is that.
Speaker 2: There's a few different lessons here.
Speaker 3: So this was a bank where most institutions had their money,
Speaker 3: not retail investors, but retail investors can still learn from this, right,
Speaker 3: Whereas a lot of people historically, especially in our community,
Speaker 3: they're like, well, I don't trust investments, I don't understand
Speaker 3: investing to I'd rather just put my money in a
Speaker 3: bank because it's safe. And the crazy thing about that
Speaker 3: philosophy is that banks invest your money. Yes, right, So
Speaker 3: this was like I said, the reason why this bank
Speaker 3: failed is that their investments didn't work out for them.
Speaker 3: But the overarching lesson here is that banks invest your money.
Speaker 3: So you putting money in a bank account saying that
Speaker 3: you don't want to invest. It's crazy because the money
Speaker 3: that you're putting in the bank account is actually using.
Speaker 2: Your capital to invest. Right.
Speaker 4: And this is the crazy part that we're using the
Speaker 4: active customer deposits as soon as they came in.
Speaker 2: You're trying to offset the losses. We just fraud. We've
Speaker 2: said this plenty of times.
Speaker 5: Just like you go to the bank and you ask
Speaker 5: for five thousand dollars, we got to call it before
Speaker 5: a tenth, You got to call it before. Most people
Speaker 5: think like, yo, the bank has they should have the money, right.
Speaker 2: But this is the reason.
Speaker 5: Because it's actively being put out to use as a
Speaker 5: tool and.
Speaker 4: Unfortunately, it's gonna be a squeeze on regional banks with
Speaker 4: a smaller bank and Midwest I'm from man, those risk
Speaker 4: controls are going to get tightened. Long parameters are going
Speaker 4: to get tightened. I feel bad for like small business owners,
Speaker 4: like they're not going to be able to loan that
Speaker 4: money as easily. And according to what Dave was saying,
Speaker 4: it's a big crash coming yea, yeah, yeah pretty soon,
Speaker 4: So those regulations are going to get even tighter.
Speaker 5: I was listening to the Fat Joe and he was
Speaker 5: talking about how he shout the fact jo Joey. He
Speaker 5: was talking about how he, you know, he banks with
Speaker 5: a regional bank. You know, if he had three million
Speaker 5: dollars and they only showing two hundred and fifty, what
Speaker 5: they're gonna do with the rest of my money?
Speaker 2: He talked about that.
Speaker 5: As far as this is concerned, yeah, yeah, not saying
Speaker 5: that he was an invested in she's saying he giving
Speaker 5: commentary for commentary on SBB on Instagram.
Speaker 2: Yeah yeah, yeah, he did a live about it. I
Speaker 2: was like, I'm gonna check that out.
Speaker 5: That's that's interesting because I'm like, yo, yo, Joey, like
Speaker 5: he knows like he stopped in.
Speaker 2: He'stopped.
Speaker 3: Sometimes he saw us who a political figure was who
Speaker 3: I didn't even recognize.
Speaker 5: He's like, yo, guys, I'm teaching yat yo, at least
Speaker 5: you should know these things. I'm like, yo, bro, you
Speaker 5: know we tapped in, but he stapped in. So what
Speaker 5: I heard this commentary on, I'm like, yo, that's important
Speaker 5: because even like when we were saying like yeah, and
Speaker 5: I know people like I don't have two hundred and
Speaker 5: fifty thousands, but at some point, like you may start
Speaker 5: a business and it may gross that and if your
Speaker 5: business that amount is insured. But yeah, what happens to
Speaker 5: the rest? Even if you had five thousand. It's not
Speaker 5: a well known bank. Have you ever logged into your
Speaker 5: account and your account was short or over?
Speaker 4: Money is being actively switched, And I know they'll say
Speaker 4: it's a bank in air, but this is happening too much.
Speaker 4: Banks are going through a huge issue of not having
Speaker 4: enough liquidity, and with every market, every market is tied
Speaker 4: together NFT crypto stop market mutual funds. Like even people
Speaker 4: who thought they had mutual funds through SVB called and
Speaker 4: SVB owned a mutual fund, was not in your name,
Speaker 4: not had I did that to y'all. Boy, y'all would
Speaker 4: have my head right. So you have to be careful
Speaker 4: a monitor who you're banking with. And it's the funny part,
Speaker 4: like the guy who ran that bank was involved in
Speaker 4: another bank crash. So going back to the fundamentals of
Speaker 4: like knowing the founder or who's running the company and
Speaker 4: what kind of intemporary they do or don't have, will
Speaker 4: decide what kind of actions that are taking. And I
Speaker 4: won't even mention Wells Fargo and other banks that introduce
Speaker 4: the scamming come on.
Speaker 3: And then also it's important to understand we talked about
Speaker 3: this yesterday too. You got to diversify. You shouldn't put
Speaker 3: all your money in just to think. And this is
Speaker 3: why investing is important, because you should have emergency funds.
Speaker 3: That's important. But at a certain point you got to
Speaker 3: start diversifying. So whether it's in stocks, whether it's in
Speaker 3: real estate, whether it's in you know, private equity, putting
Speaker 3: money into different other businesses. You got to start thinking
Speaker 3: strategically like how where can I put this money?
Speaker 2: Now?
Speaker 3: You just don't want to put money into something that's
Speaker 3: going to lose money because that's not beneficial. But now
Speaker 3: you have to actually start playing the game. It's like Monopoly.
Speaker 3: When you don't win Monopoly by just having the most money.
Speaker 3: You win Monopoly by having the hotels or the houses,
Speaker 3: because then when they land on your hotel, your house,
Speaker 3: then they have to pay you, right, And that's how
Speaker 3: you actually win Monopoly. Because I've won Monopoly two times
Speaker 3: in the last two weeks, and the Monopoly Champions playing well,
Speaker 3: I beat my dad. It was my dad, my niece,
Speaker 3: and my son. And then the other time it was
Speaker 3: it was my niece, my son, and my sister.
Speaker 2: Gotcha.
Speaker 5: I'll give you the first one because your dad is legit,
Speaker 5: you know, disrespect the second one.
Speaker 2: Okay, one question. I got strategy. There's all types of
Speaker 2: different rules you can do. It's all about strategy, all right.
Speaker 6: My graduates from my school being forced back drop drop,
Speaker 6: Mike drop back drop.
Speaker 1: Drop, an illegal alien from Guatemala charged with raping a
Speaker 1: child in Massachusetts and MS thirteen gang member from Al
Speaker 1: Salvador accused of murdering a Texas man of Venezuelan charged
Speaker 1: with filming and selling child pornography in Michigan. These are
Speaker 1: just some of the heinous migrant criminals caught because of
Speaker 1: President Donald J. Trump's leadership. I'm Christy nom the United
Speaker 1: States Secretary of Homeland Security. Under President Trump, attempted illegal
Speaker 1: border crossings are at the lowest levels ever recorded, and
Speaker 1: over one hundred thousand illegal aliens have been arrested. If
Speaker 1: you are here illegally, your next you will be fine
Speaker 1: nearly one thousand dollars a day, imprisoned and deported, you
Speaker 1: will never return. But if you register using our CBP
Speaker 1: home app and leave now, you could be allowed to
Speaker 1: return legally. Do what's right. Leave now. Under President Trump,
Speaker 1: America's laws, border and families will be protected.
Speaker 2: Sponsored by the United States Department of Homeland Security.