The regulations that are referenced for increasing the capitalization of the banks. Do those regulations extend beyond US boarders? Couldn't XYZ US bank just hold or move their "toxic" assets, that require more capital to back, to a foreign branch that does not have the same regulations?
Great discussion. You guys covered so much. I'm curious what your opinions are about the effects on liquidity/financial conditions from Treasury drawing from the Treasury General Account to meet their spending obligations.
Hmmm. Well this aged like milk. Banks were down 5-7% yesterday with regionals performing worse. Seems to be a little bit of a spillover from the fake money market ie crypto ie tulip market. Feels like more pain to come today.
You are only talking about big huge businesses with respect to lending and shadow banking. The small business owner has none of these options. The small-business owner cannot issue a bond 🤦
How about Credit and Auto default. You guys think that's avoidable? Most people I know here in Florida working two jobs just to pay bills and live. Inflation isn't going anywhere and cost of goods getting more expensive. There is no reset here guys without a recession, even of its minor. You need price destruction here. If you think it's all ok then your clearly not thinking of the middle class who gets hit with higher energy and food cost, insurance for everything and rent. Pretend it doesn't matter until it does👍👍👍
Credit Suisse is talked about in the interview - Steven's point is that the business is losing money hand over fist but that's different than it owning toxic loans financed with short-term repo finance
@@BlockworksHQ yea the comment was premature haha, but that's not to say there won't be contagion in europe from a possible bankruptcy, european banks are not subject to US stress test. No telling what other banks are in distress.
Even if the presented view was n´t consensus view, if consensus was more sceptical, even then I would still go all in on total Eurodollar financial System collapse within the next six month.
Things do kinda give off that vibe. Liquidity conditions will increase and probably expand multiples even if everybody wants to see the world end. Maybe one more dip later in the year and we make a higher low
This is straight 🔥 🔥🔥🔥🔥🔥🔥
Jack you ask such great questions..... such a talent!
They talk like it's good that they can't let a bank go bankrupt. The banks KNOW they will be bailed out so they take bigger risks. It's disgusting.
Moral hazard and anti-capitalism 101
👍JW always has a fresh and well-informed take on specific questions -- and is able to express his expertise in clear English👍
The next crisis will be at the sovereign level; bank reserves will be meaningless.
Phenomenal show. Shocker of the day: Joseph is a big Martin Armstrong fan. Did not see that coming.
Listened to this pod on the way to work. These dudes bring that high level knowledge! Enjoyed this one immensely.
Also real estate market still hot in my New Jersey neighborhood. Most people believe fed will be forced to pivot by June
Thank you for this insightful discussion, Gentlemen.
Thank you
Economic investigator Frank G Melbourne Australia is still watching this very informative content cheers Frank
If I have money the bank is definitely not where I put it
Boom! Tetris for Joseph!
good choice cutting the hair, Jack.
The regulations that are referenced for increasing the capitalization of the banks. Do those regulations extend beyond US boarders? Couldn't XYZ US bank just hold or move their "toxic" assets, that require more capital to back, to a foreign branch that does not have the same regulations?
Great discussion. You guys covered so much. I'm curious what your opinions are about the effects on liquidity/financial conditions from Treasury drawing from the Treasury General Account to meet their spending obligations.
I am from another planet....how do I get in touch with this human?
we have instability in the credit market now. The derivatives market is about 10 times larger than the world G.P, When it breaks they stop it.
Hmmm. Well this aged like milk. Banks were down 5-7% yesterday with regionals performing worse.
Seems to be a little bit of a spillover from the fake money market ie crypto ie tulip market.
Feels like more pain to come today.
Was just about to write this lol
14yo beard is a good start Jack
Yea Then what's the chart of CS saying. No stress you saying Sterling and J Yen are stable?
You are only talking about big huge businesses with respect to lending and shadow banking. The small business owner has none of these options. The small-business owner cannot issue a bond 🤦
Guys, how old you were during 2008 crisis 😎
Great new look with the short hair
What's the quick math on 6 to 8% credit default on 14 trillion dollar credit card debt???
Not good. It will trickle into housing and banks
How about Credit and Auto default. You guys think that's avoidable? Most people I know here in Florida working two jobs just to pay bills and live. Inflation isn't going anywhere and cost of goods getting more expensive. There is no reset here guys without a recession, even of its minor. You need price destruction here. If you think it's all ok then your clearly not thinking of the middle class who gets hit with higher energy and food cost, insurance for everything and rent. Pretend it doesn't matter until it does👍👍👍
What about all the zombie companies with enormous debt loads?
Great title..3 weeks later, the 2nd largest bank ever to fail in America. Geniuses...
2 words credit suisse
Credit Suisse is talked about in the interview - Steven's point is that the business is losing money hand over fist but that's different than it owning toxic loans financed with short-term repo finance
@@BlockworksHQ yea the comment was premature haha, but that's not to say there won't be contagion in europe from a possible bankruptcy, european banks are not subject to US stress test. No telling what other banks are in distress.
Even if the presented view was n´t consensus view, if consensus was more sceptical, even then I would still go all in on total Eurodollar financial System collapse within the next six month.
Not the best of predictions...
Short - Everything.
get this nerd back on after the bail-ins happen
Bottom is in
Things do kinda give off that vibe. Liquidity conditions will increase and probably expand multiples even if everybody wants to see the world end. Maybe one more dip later in the year and we make a higher low
@@theonlyconstantischange123 yes I think we are range bound til whenever pivot happens but worst may be over. Personally I’d love a dip
I don't trust the wang
Didn't age well at all. Props for trying though.
Alas, no like from me, too much propaganda. ✌️
Is Joseph Wang a FED plant