Matthew Cox | Inside True Crime Podcast - Why Small Banks Are Failing (More Crashes Coming)

Episode Date: February 22, 2024

Why Small Banks Are Failing (More Crashes Coming)

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IKEA has hundreds of design ideas and affordable options to complement any budget. After all, you're in your small space era. It's time to own it. Shop now at IKEA.ca. The people in that bank were too rich to fail. They said there were too many rich people. that had money in there that had paid for influence that started making phone calls and said you got to fix this and say oh we'll fix it will this will that we're securing the banking

system and well in the banking that that alone like that problem alone isn't going to in my opinion fix it because all you're really doing is giving everybody a huge safety net to continue to act badly yeah Hey, this is Matt Cox, and I am here with Brandon Keyes. Brandon has a YouTube finance channel, and we're going to be talking about Silicon Valley Bank, and, yeah, check out the video. What is, oh, man, I watched a sender today.

I wish I could remember his name. He was talking about Silicon Valley Bank. Silicon Valley Bank. Today, he was grilling people. Oh, yeah. Today, he was, but it was good. But so what happened, because I've watched, I'm an expert, I've watched it like four of five videos. Yeah, exactly.

Well, I mean, so Silicon Valley Bank, let's start off there, right? So, I mean, it's, obviously, it's based in Silicon Valley, but it has a few branches globally and another one in Boston. And what it's really known for is funding startups. And so what it does, essentially, you can go to Silicon Valley Bank, SVB, get a business loan, or, you know, these startups kind of put their money in this bank. use it to pay their employees, all that kind of stuff. So it was really well known for getting involved in the tech sector, which has been getting crushed lately because of, you know, the recession, the Federal Reserve raising interest rates.

And so what they did, they put their money in, you know, how a bank basically operates. They have, you know, they lend out money to people, other creditors and whatnot. And then they also potentially could have like a bond portfolio, which is a quote unquote safe investment. Right. But what happens in a bond. portfolio is like when you put it in and the interest rates are low like they were two years

ago that that bond you get a short return and it's like you know a five 10 year 20 year 30 year bond gives you like two to three percent or something like that so a very short small return with a long duration and those are not very liquid assets right it's not like you're owning equity in a company that's like publicly traded or anything like that and you can kind of buy in sell into it. And so what Silicon Valley Bank did is essentially they would say, you know, hey, we'll help fund your company for some equity at X startup. It's risky. You know, they're not making money right now, but 10 years down the road, maybe they'll make a lot of money and this equity that we have in here is going to be worth a lot of money. And we could potentially cash out

then. And then, you know, on the safe side, we're going to buy all these bonds. And so Jerome Powell and the Federal Reserve has been raising interest rates at basically, at a historic pace. So, I mean, we just had another FOMC meeting on Wednesday, and they still raised interest rates by 25 basis points, which is like 0.25%. But every meeting prior to that, except for the last one, not this past week, but the one before that, it was 75 basis points every single time for a good period of time. And basically Jerome Powell said it's going to be higher for longer, all this and that. And so what happened to those bond portfolios of Silicon Valley Bank was that they lost a bunch of money. And so these companies that were banking with Silicon Valley Bank, you know, the Fed's raising interest rates, venture capital is a little bit tighter, right? So like, I don't know, Joe Schmo, who has a shit ton of money to invest in these tech startups that, you know, is creating, I don't know, vegan cat food for transgender kids or something like that.

Um, that's going to go real well. For, for something like that, you know, that they're creating this, I don't know, some crazy tech thing that's like, maybe it's going to work. Maybe it's not. Um, you know, that they're essentially loaning money to them. Then the venture capitalists after, you know, like, like I said, the interest rates grow up, they're going to be a little bit tighter with their money. They're not necessarily going to, they're not necessarily going to lend that out as much. And so because they didn't lend that out as. much that whatever money's in the bank essentially that company that's creating this vegan cat food for transgender kids or whatever it is has to go to the bank now to pay their employees and pay the

reserves so they're doing all this and they can't pay back their loans and their bond portfolio is getting crushed so simultaneously Silicon Valley Bank in order to credit these people and allow them to pay their employees needs to sell their bond portfolio at a loss and they're losing all this debtors so one of the uh i guess the bigger names i can't remember the exact title who it was but they essentially they tweeted out like silicon valley bank tweeted out that you know hey we're looking for investors in our bank because you know we need that and they tried to say like essentially like hey we're fine we just need some more investors like everything's fine oh and and they took it and people ran what people saw the writing on the wall yeah i mean they just basically

rang the fire alarm and everybody was like oh shit like i'm getting my money out of here as quickly as possible and so that caused a bank run so not only did they sell a bunch of stuff at loss their shares were getting crushed everybody took their money out of the bank it causing them to go bankrupt and the problem is is that the fdic which is essentially like the essentially the insurance for all these bank accounts they insure up up to 250 000 per bank account right which sounds like a lot of money for an individual person, but if you think about it of like a company for, you know, 100, 200,000 employees. Caput's not cheap.

Yeah, that's not a lot of money. So all of a sudden, you know, you had million dollars in this bank account. You can only get a quarter of it back. And so that's crushing startups and other things like that. But, you know, Silicon Valley Bank is the one that got the most, I guess, publicity because they've already gone bankrupt and they were very risky with their investments. but there's allegedly 183 other banks around the country that are quote unquote regional banks that are having this same issue well what else went went under another bank a few days after that one

went like a week ago went under yeah there's like credit suisse is one that's like a big name that's getting a lot of publicity behind that too and i mean like i said there's still like a bunch of other ones that potentially could go under and you know what does that all lead to it leads to like more regulation and more kind of eyeballs on all these things. So Biden came in and said, don't worry, we're going to insure every dollar in the bank and everything will be good. Yeah. And so what does that cause, right?

So I mean, Jerome Powell is supposed to not be, and the Federal Reserve is not supposed to be influenced by any of this stuff, right? They're supposed to be just like looking at the overall economy. They're supposed to be in charge of creating a healthy banking sector. So, you know, they've kind of gone through these meetings. saying that they're going to raise interest rates for a long time, higher for longer. They're going to have more unemployment because essentially we have skyrocketing inflation. Like, I mean, the last CPI print, which is how the Fed kind of reports it, was over 6%.

And, you know, every year the target is 2%. Right. And, you know, it's 6% as low as it's been in the past, I don't know, six or nine months or something like that. It's been over 10% and all that in the U.S. And, you know, if you're living your everyday life, you know that inflation is over 6% right yeah yeah you can go to the grocery store and come back and like your grocery bill yeah Jesus God almighty I got less groceries and spent

you know 30% for like I spent 30% more money and got less stuff than I typically get like yeah it's outrageous exactly so the statistics that the reporting for the CPI it essentially changes every you know four to five years or something like that and so they just recently changed it again in uh i think it's going to infect either in march or may i can't remember off the top of my head but it's getting changed again this year on how they're reporting the quote-unquote basket of goods for CPI and so you know all this to say this is basically influenced how now the fed is looking at things and powell kind of had a meeting and he was very wishy-washy on what he's going to do in the future and so i mean this causes a bunch of market manipulation and other things like that and it's you know

causing President Biden to now come out and say like, hey, you can't keep raising interest rates because, you know, you're going to kill all these banks, when in reality, these banks just didn't really allocate their funds properly. I mean, like, if you're looking at a risk management portfolio for all of what these guys did, I mean, it doesn't take like a finance guy or a genius to be like, all right, dude, like, what the, what the fuck are you doing kind of thing? Like, you weren't, you weren't using, you weren't using reasonable underwriting guidelines to lend this money out. But once again, you know, everything was going up. Yeah, exactly. We talked about in the last video. Like they start thinking, oh, we can't lose. Like, we're doing

great. Well, I mean, like what I, what I say is when the interest rates are low, they're at like zero percent for like 10 years. When that's the case, dumb ideas don't die. I mean, like you could just like, like, like I said, like vegan cat food for trans kids or like the even like FTX and like some of these crypto things where it's like put in this money, all this staking is fine. Like There's nothing behind it, but, you know, we're just coming up with these random ideas and they're shooting up from companies that were non-existent. And then within two years, you have a multi-billion dollar evaluation. Like, that just doesn't make any sense. And that's kind of the environment that we were in.

And these banks were just lending to all these companies, just putting a bunch of marketing dollars behind it. And, you know, these companies shot up on huge evaluations. So the bank's dancing for joy. And then now all of a sudden, like, you know, inflation skyhose. high and the fed's like all right well we got to pull back the reins a little bit and uh you know the companies are getting fucked therefore the banks are getting fucked and yeah i mean the end consumers the one that's left holding the bag so yeah i i love that that don't worry we're gonna we're going to pay that money we're going to cover those losses out of this fund that's been set

aside you mean the fund that's funded by it's funded by the banks right and the banks pass that on to the to the consumer so it's like you know ultimately the citizens of the U.S. ultimately end up bailing them out. I mean, it's going to be our tax dollars that's going to be paying it, right? I mean, so, I mean, they've already claimed, I think it was like higher like 80,000 more IRS agents. And like, you know, when it comes down to it, the people who are getting audited are not the... The 80,000, the Republicans crush that, by the life. They're not hiring 80,000 more.

Yeah, I know. But they're trying to do stuff like that, you know, so... Well, what I was going to say is, like, and I get it, because... The argument is that the, let's say you had $2 million in this bank account. It's only FDIC insured up to $250,000. And they're like, look, it's, you know, one, you've got some people are arguing, hey, those are rich people. They should have thought about it.

They should have diversified more. They should have thought about it. And then, of course, some people are saying, hey, those are bank accounts that that money is actually going to go to pay individuals that work at companies. and you know that's horrible too those companies will go under okay well those companies are probably going under anyway yeah um like to me i could see going in and saying if you were i could see going in and saying to the government look if this is a if this is a corporate bank account and this is money that's allocated to pay your employees like we'll help fund that and you can pay us back with a very general we'll

give you a very generous loan but we're not going to bail out everybody across the board that had money you know what i know what fdic insurance is like i know how much is covered you knew how much was covered you you know if you're you know if you're opening this company and you're making a stupid product and you know but by now you know that that this is risky you know what's going on you know you're going under you know you can hold out hope that nothing bad's going to happen but you invested in this company you borrowed money you've got money in the bank count It's only got up to $250,000. The bank goes under, you'll lose the money.

Now, I understand if that's for your employees, well, then fine. We can work with that. We'll come up with something, but I wouldn't go bail everybody out. That doesn't even make sense because if it was a bunch of poor people that had money in there and they weren't related to rich people, I don't think they would have bailed them out. Tons of regional banks go under all the time that they don't bail out. So it seems like, and I always say this because I watched a video that they were talking about, the people in that bank were too rich to fail.

They said there were too many rich people that had money in there that had paid for influence that started making phone calls and said, you've got to fix this. And they're, oh, we'll fix it, will this, will that. We're securing the banking system. And that alone, like that problem alone isn't going to, in my opinion, fix it because all you're really doing is giving everybody a huge safety net to continue to act badly.

Yeah. He's been known to cure insecurity just with his laugh. His organ donation card lists his charisma. His smile is so contagious. Vaccines have been created for it. He is the most interesting man in the world. I don't typically commit crime, but when I do, it's bank fraud. Stay greedy, my friends.

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The Naked Gun. Tickets on sale now. August 1st. No, 100%. And I think, like, you know, what we saw out of the 2008 crisis, right, is that the government came in and bailed out a shit ton of companies, right? And, I mean, at the end of the day, not all those companies were great companies. Right.

And so, like... But I think that's different. like that was a that was way more yeah that was affecting individual homeowners across the entire country which were also stupid by the way well i mean you bought four houses yeah you know you bought four houses to rent out you don't know what you're doing you're you knew you didn't apply for you know you didn't qualify for these loans so so in some ways that's stupid but also so if you actually go and look into it remember when they did that and everybody was saying that the government's going to end up owning all these banks, they didn't.

Yeah. And that will never see that money back. Man, like 92% or 95% of all the TARP funds were paid back. Yeah. Almost all of it was paid back. So you had these people, it's cats and dogs. You're raining from the sky and it's horrible and it's Armageddon and we're going to be communists or socialists and none of that happened.

So, you know, I get it. But that was different. Like the whole financial structure, the whole financial system was crashing. Oh, 100%. Well, I mean, like what I think too there is like, like you said, that that was like different because it was housing, right? Right. I mean, this like you're messing with people's like jobs and like other things like that, like how they're making a living essentially. This wasn't millions of people's jobs.

And they could have come up with a better plan. But I mean, all right. So SVB, it's one bank, right? I mean, like I said, it is almost seeming like it's a contagion and this is just starting. And that's the scary part about all of. this is that you know it's come out like I said 183 others that could potentially be like that and you know the way the banking system is set up is there's really like four big dogs and then there's a bunch of regional banks and so like what my fear is is essentially that all right one of these

four big dogs is now going to bail out Silicon Valley Bank and then uh you know these 103 other guys are then going to get swallowed up by these four guys they just basically mega banks right mega banks and then what happens when you have a mega bank right there's less touch points of entry and then if the government wants to come in and do something or make some sort of regulation you don't have to go searching for you know this guy has a regional bank in tennessee's first bank and then he has a chase bank account then he has you know capital one then he has an offshore one it's like well you only got four options now yeah and then you you can go to one of these and just you know cut somebody out like that or you know you need a loan

well like I don't really like what you said on this video this one bank cut you out I don't really like you know right I don't know your views on this like what like I mean it's almost impossible to build a relationship with a bank that you mean nothing to so you can't you know with a small regional bank you can build a relationship where where you can you know they'll give you some leeway here they'll understand your small business like I understand here's what happens

with him so sometimes he needs cash flow and sometimes this but he's good for it he's been in the community for 10 years Like, I know the guy. I went to high school with the guy. Like, he's good. Always been good. We have a good relationship. You can't get some guy in New York City who's a member of a mega bank to pay attention

to some little guy in Temple Terrace, Florida, who's trying to get $100,000 alone to, you know. Open a restaurant or something like that, you know? Like, I mean, it's 100%. That's the case. And then, you know, that guy in New York, all right, who does he know? Maybe some young ambitious kid who's going to start the next FTX or, you know, some of this, like, stupid vegan cat. food thing and they're 400 million dollars to invest in something stupid and ridiculous and yeah and then it's like okay well I'm going to let this thing has the potential to boom and like all right this little

restaurant here in temple terrace all right like maybe sure you'll make a couple thousand dollars a month right yeah but they don't want they don't want yeah right exactly so you they want to lend the big money that's going to have big potential hey have a question for you all right and I already know you didn't read this this is so disappointing I'm already disappointed and just asking just the idea of the discussion. Did you ever read the book, Jennifer Government? No, I didn't. Did you, I know you, I did.

I forget it. Listen, Jennifer Government, I'm amazed that Jennifer Government never became a movie. It was, it was so, so, and you don't probably remember this, but there was a time, because you're like, you're in your 20s. I'm a young gun, man.

What could I say? I don't know. There was a time when kids were shooting each other over Nike's, over Nike tennis shoes. Well, Jordan's, right? Right, Jordan's Nike, right? So this person, so this was happening, right? This person, so 1984, like we were talking about, is essentially it's kind of like communism, you know, gone wrong, right? Like, well, in this, this is capitalism gone wrong.

And it's basically the elimination of taxes. And so you have that the guy, he breaks up the map. It's a guy named Max Berry. He breaks up the map where he explains to you, like Europe's kind of socialist. And then you basically have socialism and you have capitalism and there's a few communist countries. And but the capitalist, like it's the United States, part of Australia. you like it's got this whole world order thing but capitalism has gone to such an extreme that if you work for if you go to work for for for nike right your name is now brandon your surname is

now nike you're now brandon Nike if you're unemployed it's brandon unemployed it's it's you know matt state farm it's you know whatever it's matt all state i work for all states or it's matt all state let's say yeah um and it starts off where Nike comes up the book starts off with Nike comes up with something they call it's like a guerrilla marketing plan and they say here's what we're going to do

we're going to advertise these new Nike tennis shoes that are they're called mercuries and they're going to sell them for $1,500 a piece and we're only going to

make a thousand of them but really they've made 40,000 pairs And they say we're releasing 100 pair At this store in the mall This was back when there were malls Yeah back when people were wait in line

Right these things So people are waiting in line But they're not going to release 100 by the way They actually send a thousand to the store Yeah so people will get lots of them What's happening is people go out And they're spending at that By the way they explain that the shoes

Are being made in China for $2.50 a piece Yeah They got $2.50 cents a piece They're selling them for $1,500 bucks and people are buying them so they can resell them for $2,500. But Nike essentially just blows this out and the way they get street credit

is they hire someone from the NRA because there's the police force who only investigates crimes if you pay for it. So if your wife gets murdered and you want someone to find it, then the government comes to you and says, look, it's going to be $45,000 to fund it.

So if you fund it, you can refinance your house, get a loan. We'll investigate. We have a 97% conviction rate. We will find these people. So, but what happens is they release 100. There's really like 1,000 of these shoes or 500 of these shoes. They're releasing at Nike Town and, you know, East Lake Mall. People are lined up.

And in order to build street cred, they hire someone from the, from the NRA to shoot. the first five people that buy shoot and kill the first five people that buy Nike's and steal the shoes and run off and that will build street credit people will be like oh my God people are shooting each other for these shoes they're definitely worth it and so they do they have some guy

he shoots four or five people grabs a couple pair of Nike's and runs off and one of them's like a young girl she ends up dying and eventually the parents hire they go to the government to investigate and they go to Jennifer her government she works for the government yeah and she investigates the whole thing and

if you really like they're literally like there are companies there are companies like um let's say a shell corporation like shell corporation when you talk about espionage it's on a whole another level yeah i mean we're talking about corporate espionage on a on a where they literally have their own like military and they've got they've got gangs with which are McDonald's. They'll tattoo McDonald's on, like, their neck or something. The McDonald's, and then they'll have another guy, there'll be another gang will be the Burger King gang.

Oh, man. And so the Burger King gang's hanging out in front of the McDonald's, guys are trying to go into the McDonald's. They're like, yo, man, where are you going? Yeah, why aren't you going to Burger King? Oh, oh, you're going to McDonald's, you know, and like, that's a, they're getting to a huge fight. Yeah.

It sounds ridiculous, but when you read the book, I read it two or three times. I mean, it's so overwhelmingly good Because when you read it, the things that happened in that book, they had taken things that happened that were happening in society. It was written by a guy. The guy, he wrote Surrup. Anyway, I think he's Australian. And he wrote this book.

And it takes things to an extreme. But some of the things that you read about, you realize, like, that's happening. These things are happening. Like, this was 20 years ago. this is happening now. Oh, 100%. It's insane. And I really, when I read it, I thought, this would make an amazing movie.

Yeah. I mean, like we were kind of talking about this a little bit before, right? Like, 1984 stuff. Like, you never really thought that this would, like, I mean, this was supposed to be some, like, thing for entertainment. Like, it's way out there. And, like, we're getting closer to that than you really think, right? I mean, if you read the Communist Manifesto and you kind of go through, like, I think it's like 10 of the different, whatever, things of communism. If you really look at it pretty deeply, like the United States probably checks like seven or eight of those boxes.

Like, we're getting pretty close to it. I mean, like, sure, we're not as bad as maybe like Russia or China or some of these other places. But, you know, the whole like land of the free thing, we're not really there anymore. I mean, people are getting censored, right? I mean, like, yeah, I would say it's really, listen, the United States has the best marketing campaign ever invented in history. I mean, the whole slogan of the home of the brave, land of the free, home of the brave, like we have more incarcerated.

We have what, 5% of the world population. We have 25% of the total incarceration of the entire world. One out of every 100 people is on some form of incarceration in the United States. That's one out of 100. I mean, it's, it's, you start doing the numbers, and it's insane. You know, they, you know, can you have guns? sure, some people can. Like, I can't.

And it's super regulated. Like, there's so many things that have veered off from the Constitution. When I got wrong, I'm sorry, when I got Rob. When I got, when I was arrested, I was being, and I was being interviewed by the FBI, there was this chick there named Candace Calderan. She was a chick. She was a special, an FBI agent. And we were talking, and I remember she said, well, we were talking.

talking about somebody and she said, well, she won't talk to us. And I went, well, I said, you know, it's not like she has to talk to you. Yeah. And I said, I mean, and she goes, she goes, what do you mean? I go, I said, well, I mean, the Constitution say, like, you self-incrimination, like you don't have to incriminate yourself. You certainly don't have to answer questions from law enforcement. And she said, and I go, I'm pretty sure that's in the Constitution. And she goes, well, that document was written a long time ago. And I looked at my lawyer and I go, we're still using it, aren't we? And she, and my lawyer said, some of it. She has some of it. And I just, the look on this shit's face, I just remember thinking, like, you're trying to say that this person is guilty. That was a bit, the, the

spirit of the conversation was, I believe this person's guilty because she won't talk to me. And I want to indict her. Yeah. And I was saying, one, she didn't do anything wrong. which by the way is not what I said about anybody else that I was talking about but I was saying this person has not done anything wrong and two she doesn't have to talk to you and she was saying by not talking to me I think I should add her to what they wanted to be an indictment and it was like like that's not right like you can't you you and but she was like yeah the constitution is like that's that's an old document like I'm pretty sure that's the foundation of what this country's built on and that's what I thought at the time I don't believe that now. Like, I now know that it's... I mean, you went through the system. If anybody knows, it's you, right? I mean, you know, I said the nicest thing about going through the system is that I was

extremely guilty. Yeah. So anything that happened to me, I really had to blame myself. But I've seen tons of... Not tons, but I've seen people in prison that made the mistake of getting indicted and then thinking that they were innocent or not wanting to accept the fact that the government said they were innocent and went to trial. and instead of getting 18 months in prison

ended up with 15 years or 10 years or the disparity between taking a plea and going to trial is the most unfair part of the system. Like, you offered me 18 months. I go to jail or I go to trial and I lose. I see that I think the disparity should be a few years. Like maybe I get two or three years now. I should have taken the 18 months.

I got three years because I would do, but it's not. Yeah. You offered me 18 months. I get 10. I get 12 years. Yeah. 10 or 12 years. And you're like, that's insane.

Yeah. Like literally 10 times the amount. Right. And it doesn't do anything, by the way. All that is is for the public. Because the truth is, if you sent that person to three years, their life has been so overwhelmingly devastated by that three years. The extra seven or eight years doesn't change anything.

It doesn't do anything but just cost the taxpayer more money and make the money. and make them feel like, yeah, that was justice. But the truth of, if you really sat down and looked over everything and what this person had done, the average person in society would say, yeah, I'm sorry, man, he doesn't deserve 10 years. Yeah. That's why, by the way, I don't know if you know this or not,

the jury in a criminal case, is only allowed to determine guilt or innocence. Not the amount of time. They have no idea what you're even facing. Most jurors, if you ask them, hey, so you just found this guy guilty for fraud. Like, yeah, right, right. So what do you think he's going to get?

Oh, probably probation. Somebody else might say, I think he's going to go to jail for a couple years. And then they find out three months later, they read the paper and find out the guy got 15 years. And they go, I didn't know he's facing 15 years. I would have never found him guilty. Exactly.

They can't let you know. The only time a jury is allowed to. know what you're facing is if the death penalty is involved that's it wow so if you're potentially could get the death penalty they have to let them know by the way if he's found guilty of this charge he may be subject to the death penalty that's it they won't even tell he will get it just because he may because the judge determines that yeah judge has a shit ton of power yeah law enforcement often questions him not because he's suspected of a crime but because they find him fascinating. He is the most interesting man in the world. I don't typically commit crime,

but when I do, it's bank fraud. Stay greedy, my friends. Support the channel. Join Matthew Cox's Patreon. So, so anyway, that was my rant. Um, anyway, sorry, yeah. No, I mean, that's all fair, but I mean, it brings us back to the point, right? Like, things aren't exactly as they appear. when it comes to like everything right so i mean whether it's big government whether it's you know the banking system like you think you put your money in the bank and it's safe right i mean like but what you don't realize is everything that you do at this point with your money unless you're like hiding it under a mattress i mean even hiding it under a mattress is a risk right because like you're losing your money when it comes to inflation you're losing your money you know if you

park it in a bank account because you know you get like 0.5 or even 2% or 2 and a half percent and inflation six. So I mean, you're losing whatever the spread is every single month. And yeah, so I mean, like people have just been kind of, I guess, privy to, uh, jump into these scams and like just trust people and like think like, hey, you know, I don't know, this sounds like a good idea. Like this person has fabricated their numbers or whatever. So it looks like it's a lot better than it is. Lindsay Lohan said it was. Yeah. Solid investment. I mean, they said it was a good, you know, this, you know, poopy dog coin or whatever it is. is is a good investment and it's going to go to the moon so through all this you know it's been

funded by these banks who have just had the easy ability to just loan to whatever the fuck they want and then they're like oh well we'll buy these bonds that it'll give us two to three percent back well now the interest rate's at like five percent so you're losing cash like crazy and so i mean like at the end of the day it's just been this perfect cocktail that's just like killing like all these stupid ass companies that have gotten people to believe like hey you know I'm I'm going to be the next Jeff Bezos and create the next, I don't know, Amazon for whatever it is, or I'm going to create the next Uber for this, or I'm going to create, you know, the next whatever it is. And so, yeah, like I said, when the interest rates are low, dumb ideas never die.

And that's just kind of the environment that we've been in. And so what has Jerome Powell kind of had to do? I mean, we like forced his hand essentially to raise interest rates at a skyrocket pace because, you know, I mean, hindsight's always 20-20, but he probably should have been done doing this a lot earlier yeah and so we're into this situation now where you know like we said about 2008 essentially we're going to have to bail out like a lot of these banks and so they've talked about already injecting like two trillion dollars into into the system more inflation yeah and i mean like it's it's going to be a really interesting environment to see what we decide to do right so the market essentially like the market is very forward facing and so the

market has already priced in 100 basis points of rate cuts by the start of next year so you know take that for what it is but you know it's like i said every single meeting they've been raising and pal has been saying before this past one that they're going to keep raising and raised throughout 2023 well now the market's like pricing in like hey you're going to have to reverse course on that and inject a shit ton of money back into the system well what's what's that going to come out of either the banks are going to get swallowed up by those four big guys or you know the president now has the power to say like hey we bailed out the banking system because you guys were idiots so now we're going to put more regulation on you to kind of come to your help and come and kind of save you or you know and then

the and consumer's going to be stuck holding the bag with a shit ton of inflation they're going to either get taxed out the ass or lose their jobs and you know we're going to have to bail out these banks who are invested in this vegan cat food for trans kids right and you know it's it's all all like kind of just goes back to the end consumer and you know the rich people are going to swallow up hard assets like real estate gold and like maybe invest in some of these smart companies like an apple or an amazon that are already kind of proven instead of jumping in or maybe they even have enough like liquidity to jump into some of these stupid ideas well hey the interest rates are going down and then they can you know ride that wave up and then jump out at the top because

they know some idiot's going to buy this super stupid fucking dog token or whatever it is so i mean we just get into this never-ending cycle where the rich get richer the poor get poor and that gap in between gets larger and what does that do it leaves the people that are at the very bottom of the overall economic system to say like hey like this is fucked up we need some help government come and help me and what does that leave them that leaves the government with a just extreme amount of power where they'd be like all right well we'll help you you know well eventually that that you got four or five percent of owning 80 percent of the wealth and then you've got everybody else who's just poor well at some point that whole crowd says you know what

we're going to do we're just going to go take it from all you rich people yeah like that that's you know that's just communist communism uh it's a communism revolution you know and that's what like ultimately that's what happens and i think i don't know did you Did you, did you ever see, have you ever watched Handmaid's Tale? No, you're bringing up all these things I haven't seen it. Bro, you've got to see Handmaid's Tale. Have you seen that? Forget it.

Handmaid's tale is amazing. All right, I got to watch on that thing. God, it's so great. And it's really, listen, it was written back probably in the 50s or 60s, but it's like apropos for what's going on because they, they tie in all these things about the religion. They tie in global. you know like climate change they tie in like uh just all kinds of stuff and it you and it's it seems good on this whole thing too like oh what do you do i don't i mean so like the way i think i mean

it's essentially like it's all revolved around this whole fiat dollar system right i mean the government has so much control over the inflation the dollars like whatever and so what the theory is is like the Fiat monetary system, you know, it inflates by 2% every year. Well, our efficiency and as hard as we work is supposed to grow by more than 2% every year. Well, that doesn't necessarily happen, right? I mean, maybe with tech, it happened for a little bit, and that's why we saw a little bit of a boom. But, like, right now, are we more efficient than we were like two years ago? Are we 10 times more efficient or, you know, 10% more efficient than we were last year? I wouldn't say so. No. And because of that.

that you know that just causes well it causes like somebody my age right if i am dating a girl or something like that we decide to get married right now we both have to work a two income household we have to put off having kids later i mean it's like this never ending cycle of just like you know killing the the traditional family where you know you can't have necessarily kids and like that that's why you're seeing you know people my age get married a lot later not have kids until they're mid 30s And then that causes some sort of, you know, there's higher risks when you have kids later in life. And so it's like, I mean, like the family's one issue, right? I mean, like the personal freedom, people are going to be retiring a lot later.

You're going to have to be supporting your, you know, your grandmother or your parents a lot later in life. Well, this system is designed to grow. It's designed to continually, you know, it's not like you say, hey, there's 300 million people and we're going to, we're going to maintain society this way. Unless you had a completely planned society of some type, but our society is set up to continually get bigger and bigger. It's like the thing that's happening in Japan, China, like you've got a whole segment of society is just missing. You've got all these people getting old and nobody to take care of them.

And so that's going to be a major problem in 10 years or 5 to 10 years. It's going to hit China so hard. They've got like 30 years of people just of a group of people. Just a gap. right this gap that should be working is gone yeah and then what do you do right i mean like then it's like all right well the government's got to come in and control all this stuff and help out so i don't know i mean i think like at the end of the day a lot of these banks like what we what we need to hope to see is that like silicon valley bank and like credit suisse and some of the bigger names that

have already failed are like the last cog and that you know the federal reserve kind of holds true I, in my opinion, I think that if they, you know, kind of keep their foot down and don't necessarily inject all this liquidity in there and don't have to bail out all these big guys. And hopefully these big four banks only swallow up a couple. Like, if all these things happen, then we'll be able to come out the other side a little bit better. But, I mean, not to be doom and gloom on this whole thing, there's just a lot of shit going on and shit's hitting the fan where it's like kind of the perfect cocktail where, I mean, it's almost like inevitable that if we're even if we're not already in a recession we should probably we're probably going to get there in the

next year or so and you know we've been in an economic time where it hasn't necessarily been solid for the past year like people look at okay point at unemployment at like an all-time low well i mean the fed's like pointing that this needs to to raise and um you know some other things like that so i think like just the amount of control that the government and other people have when it comes to like the monetary policy is what's going to be you know americans America's detriment in the end. Like, we've been so lucky and blessed to live in America where we've had the global reserve currency since 71 and, like, basically, like, the powerhouse where we need to go bail out all these people and, like, we have the strongest military and all this and that.

I don't really think countries are afraid of America anymore or look at America as, like, this all big power. I think, like, you know, we're starting to see a lot of cracks in that armor. And, you know, Silicon Valley Bank is just, like, an aftermath effect of all of that, where people are kind of like grasping at straws and trying to you know make america and like these companies and all this other things like fabricated look a lot better than it actually is kind of my my viewpoint on it like i hope shit doesn't hit the fan but i don't think continuing continually bailing out people or bailing out bad behavior is you know like i i think lend them the money or you know like in as far you know there's i think there are other ways to fix the

than just continually bailing them out. Well, yeah, I mean, I think that and, like, banks need to be smarter with how they're lending. They need to have more strenuous, strenuous processes and things like that, too. And, I mean... Listen, in China, they'll just take them out and shoot them. They'll, they just... First of all, this is not getting monetized. You've mentioned transgender multiple times.

I've mentioned China. Like, it's got to, there's a problem. There's going to be a problem. Colby's got to be like, what are you doing, bro? That's like, that's part of the problem, though, right? I mean, like, you can't... It's not a freedom of speech. platform yeah i mean it's controlled it's controlling the narrative at the end of the day

we thank god we didn't mention covid yeah um so yeah it's it's so yeah we've mentioned the porno chick yeah like i mean it's over this is a horrible video for me um my bad dude i'm sorry about that um yeah i think that i i think bailing people out over and over and over and sometimes you just have to let a nice little chunk go under and and or you know listen in China, you know, they just take the executives out and shoot them out in the park and just shoot them in the head. Like, do you remember listen, this was 30

years ago that China was selling dog food, like they were just kind of starting to become a major powerhouse, right? And one of the things they were doing they were selling like dog food. And the dog food manufacturers put some kind of a filler in the dog food and hundreds of dogs were dying in the United

States. And so they took the CEOs out of the place and just shot them in the head execute them like like because in the way they looked at it was look like

you're what you're stupid decision just cost our country tons of jobs money everything no and here's how we're going to let let other people in running these countries

companies know we all shoot you in the fucking head and they just took them out and shot them in the head and that was it it was over so you know I think those I think if they they take these the problem is is you know

in this country you've got civil and criminal and these guys like have they done anything criminal i'll tell you what the f the fbi i can they'll find something you did criminal yeah so i mean too i think it's like some people that are getting loaned like hundreds of thousand dollars like take student loans for example right i mean you're going to go do student loans and get some like gender studies major you get 250 000 you go to some liberal arts college 250 000 in debt by the age of 22 or maybe even 25 or whatever you took a long time to graduate because you've changed majors and all that you're making 40 50 grand a year you're never going to pay that money back and then what what we've

been doing to kind of I don't know put a band-aid on it is like all right president Biden has been like all right I'm not going to charge any interest on on your student loans like now or you know they keep pushing it back I think the next time they're going to make the decision is in July and then they were going to forgive them yeah tons of what does that say for the people that borrow the money and paid it back well I mean they were going to forgive up to like 10 grand but the thing is is that 10 grand that they were going to forgive up up to people is they were going to tax that 10 grand on you so you take that 10 grand that I don't know you have a hundred thousand dollar loan now it's 90,000 well we gave you 10 grand so you're going to have to

pay 25 or 2,500 of that as taxes because we gave that to you right so it's like kind of like a backhanded thing that they were going to do with all that but essentially like they've stopped the interest payments on student loans for now and majority of students loans are lent out by the government and so majority of people just haven't been paying that they've just been like hey you know the government maybe they're going to bail us out eventually and not not make us pay it but you know when that when those uh you know the payments start knocking and you have to get paid or you have to start making those payments that's an extra i don't know 250 300 400 that people haven't had to pay for the past two years yeah so what's going to happen with that floodgate

opens. And you're teaching high school for $40,000 a year. Yeah. You know, because your degree really doesn't pay you anything because it's, you know, gender studies or something. Yeah, you're a math teacher at a high school in a small town where, you know, the... Yeah, you're making $35,000. Yeah. And on that note, too, I mean, you're making $35,000. And then your grocery bill has gone from $100 to $200. And like, everything around you has gone up. Your rent's gone up and everything like that and we're like all right i get to this break on this 300 400 400 payment for a few years for a few years then it opens up and then now my rent went from a thousand dollars a month to 1500 a month and now on top of that i have a 400

student loan payment that i got to make right i mean like we've seen basically credit card interest skyrocket uh interest like our loans on credit cards or whatever you want to call it i can't think of the proper term right now that's credit card debt skyrocket and we've seen personal savings go at like at an all-time low and so we're basically like just cooking up for a recession and it's like all these things are just kind of in a recession I personally do yeah I do but just because the I mean some financial yeah some financial bro is going to say tell me that I'm an idiot because I'm not you know like I don't know but if you look around and you just are you think about the comments guys were giving you like a couple of guys gave you a hard time in

the comments and you were like they're like this guy isn't an expert you're like I didn't say it was an expert yeah you can't go in the comment well you go in the comments but you have to understand people are just jerk off yeah no I mean like some financial bro's probably going to tell me in there that I'm wrong and we're not in a recession yet but and that everything's fine everything's peaches and daisies but I mean like look around you can talk to any real estate agent out there they'll tell you they ain't nothing selling yeah like every prices are dropping and they're still not selling yeah so there's a there's a recession you can go in the grocery store going you know come on man it's it's a recession like no i mean

is it as bad as it's going to get no not even close yeah but this is and this is this is right now they're propping it propping it propping it propping as much as they can but at some point there's just nothing else you can do and it things start going bad i mean as the as the crypto scam see it the rug pulls you know i mean we're going to see that in the overall economy unfortunately and i think we're just making for the perfect cocktail right now for shit to just hit the fan well you know there's always fraud that's true yeah that's what i fall back on people say how are you so relaxed listen yeah i got it i i got something no okay listen all right listen oh my god i didn't do you remember the uh the um sheriff's deputy that called me

or the invest sheriff's investigator you know i went and and did that it was pretty cool it was pretty They were actually pretty cool. Yeah, I talked in front of like 30, at least 30 investigators with the Hillsborough County Sheriff's Department. I went in and was talking about title fraud. Oh, yeah. So super cool. I'm actually supposed to do it again on the 28th. I was supposed to go talk to.

Anyway, a whole other subject. Anyway, very cool, right? It was pretty cool. And I was really very, I couldn't believe how nervous I was when I walked in because I was like, oh, wow, these guys really hate me. Usually when I go, it's brokers, and most of them like me. Like, they think they've seen my stuff. I kind of know they already kind of think. They know what I did.

They're like, wow. At least they're kind of impressed. Like I thought, respect it kind of thing. These guys are going to hate my guts. But after about 10 minutes, I was like, oh, they're all right. Like, they're giggling and laughing and smiling. I felt much more comfortable.

Yeah. Initially, I was real. Like, I typically don't know. I was spoken in front of three, 400 people. Yeah. But I was never been so nervous. There's shit and bricks out there. Yeah, I was.

I didn't even do anything wrong all right all right so we're gonna I'm gonna wrap it up is that cool yeah that's fine with all right cool um we gotta put your we didn't even mention your we we got put your link we'll put the link we'll put the link to brandon's uh channel it's um green candle yeah green it's a youtube channel green candle and we'll put the link in the description and i appreciate you coming by and i appreciate you guys watching buy one of my books uh I sell paintings on Etsy and I appreciate I also have Patreon see you

I don't know if you guys know this or not but when I was locked up I wrote a whole bunch of true crime books and all of the books are on Amazon Barnes and Nobles audible their e-books check out the trailers using forgeries and bogus

identities Matthew B. Cox one of the most ingenious con men in history built America's biggest banks out of millions Despite numerous encounters with bank security, state, and federal authorities, Cox narrowly, and quite luckily, avoided capture for years. Eventually, he topped the U.S. Secret Service's most wanted list and led the U.S. Marshal's FBI and Secret Service on a three-year chase, while jet-setting around the world with his attractive female accomplices. Cox has been declared one of the most prolific mortgage fraud con artists of all time by CNBC's American Greed.

Bloomberg Business Week called him the mortgage industry's worst nightmare, while Dateline NBC described Cox as a gifted forger and silver-tongued liar. Playboy magazine proclaimed his scam was real estate fraud, and he was the best. Shark in the housing pool is Cox's exhilarating first-person account of his stranger-than-fiction story. Available now on Amazon and Audible. Bent is the story of John J. Boziak's phenomenal life of crime. Inked from head to toe, with an addiction to strippers and fast Cadillacs, Boziac was not your typical computer geek. He was, however, one of the most cunning scammers, counterfeiters, identity thieves, and escape. artists alive, and a major thorn in the side of the U.S. Secret Service as they fought a war on

cybercrime. With a savant-like ability to circumvent banking security and stay one step ahead of law enforcement, Boziak made millions of dollars in the international cyber underworld, with the help of the Chinese and the Russians. Then, leaving nothing but a John Doe warrant and a cleaned-out bank account in his wake, he vanished. Bozziak's stranger-than-fiction tale of ingenious scams and impossible escapes, of brazen run-ins with the law and secret desires to straighten out and settle down, makes his story a true crime con game that will keep you guessing. Bent. How a homeless team became one of the cybercrime industry's most prolific counterfeiters. Available now on Amazon and Audible. Buried by the U.S. government

and ignored by the national media, this is the story they don't want you to know. When Frank Amadeo met with President George W. Bush at the White House to discuss NATO operations in Afghanistan. No one knew that he'd already embezzled nearly $200 million from the federal government. Money he intended to use to bankroll his plan to take over the world. From Amadeo's global headquarters in the shadow of Florida's Disney World, with a nearly inexhaustible supply of the Internal Revenue Services funds, Amadeo acquired multiple businesses, amassing a mega conglomerate. Driven by his delusions of world conquest, he negotiated the purchase of a squadron of American fighter jets and the controlling interest in a former Soviet ICBM factory.

He began working to build the largest private militia on the planet, over one million Africans strong. Simultaneously, Amadeo hired an international black ops force to orchestrate a coup in the Congo while plotting to take over several small Eastern European countries. The most disturbing part of it all is, had the U.S. government not thwarted his plans, he might have just pulled it off. It's insanity. The bizarre, true story of a bipolar megalomaniac's insane plan for total world domination. Available now on Amazon and Audubord. Pierre Rossini, in the 1990s, was a 20-something-year-old, Los Angeles-based drug trafficker of ecstasy and ice. He and his associates drove luxury-year-old.

European supercars, lived in Beverly Hills' penthouses, and dated Playboy models while dodging federal indictments. Then, two FBI officers with the organized crime drug enforcement task force entered the picture. Dirty agents willing to fix cases and identify informants. Suddenly, two of Rossini's associates, confidential informants working with federal law enforcement, or murdered. Everyone pointed to Rossini. As his co-defendants prepared for trial, U.S. Attorney Robert Mueller sat down to debrief Resinia at Leavenworth Penitentiary, and another story emerged.

A tale of FBI corruption and complicity in murder. You see, Pierre Rossini knew something that no one else knew. The truth. And Robert Mueller and the federal government have been covering it up to this very day. Devil Exposed. A twisted tale of drug trafficking, corruption. and murder in the city of angels. Available on Amazon and Audible.

Bailout is a psychological true crime thriller that pits a narcissistic con man against an egotistical, pathological liar. Marcus Schrenker, the money manager who attempted to fake his own death during the 2008 financial crisis, is about to be released from prison, and he's ready to talk.

He's ready to tell you the story no one's heard. Shrinker sits down with true crime writer, Matthew B. Cox, a fellow inmate serving time for bank fraud. Shrinker lays out the details, the disgruntled clients who persecuted him for unanticipated market losses, the affair that ruined his marriage, and the treachery of his scorned wife, the woman who framed him for securities fraud, leaving him no choice but to make a bogus distress call and plunge from his multi-million dollar private aircraft in the dead of night. the $11.1 million in life insurance, the missing $1.5 million in gold. The fact is, Shrinker wants you to think he's innocent.

The problem is, Cox knows Shrinker's a pathological liar and his stories of fabrication. As Cox subtly coaxes, cajoles, and yes, Khan's Shrinker into revealing his deceptions, his stranger-than-fiction life of lies slowly unravels. This is the story Shrinker didn't want you to know. bailout, the life and lies of Marcus Shrinker, available now on Barnes & Noble, Etsy, and Audible. Matthew B. Cox is a conman, incarcerated in the Federal Bureau of Prisons,

for a variety of bank fraud-related scams. Despite not having a drug problem, Cox inexplicably ends up in the prison's residential drug abuse program, known as Ardap. A drug program in name only. Ardap is an invasive behavior modification therapy, specifically designed to correct the cognitive thinking errors associated with criminal behavior. The program is a non-fiction dark comedy, which chronicles Cox's side-splitting journey. This first-person account is a fascinating glimpse at the survival-like atmosphere inside of the government-sponsored rehabilitation unit.

While navigating the treachery of his backstabbing peers, Cox, simultaneously. simultaneously manipulates prison policies and the bumbling staff every step of the way. The program. How a conman survived the Federal Bureau of Prisons cult of Ardap. Available now on Amazon and Audible. If you saw anything you like, links to all the books are in the description box.