Phase 2 Of The Banking Crisis Just Started

[@KenMcElroy]

If you want to support the channel, please share this with someone you think would benefit!

[@issenvan1050]

Why don’t you use timestamps?

[@kevintewey1157]

29:30 the super rich in the USA are living the Communist dream but only the Super Rich by not working When are you cowards ever going to admit that your system sucks for most people When are these cowards going to take a good look at China and tell people how a working system is HELPING COMMON PEOPLE. ????????????????????

[@jerrycampbell-ut9yf]

This bank crisis is so far from being over. Anyone who has been around for longer than 12 years, knows a credit crisis isn't over in two weeks. Makes me laugh seeing folks thinking this was all over so quickly. We are seeing a credit contraction that is gonna lead to a major contraction.

[@Peterl4290]

In my opinion, some of these banks were attempting to restructure their bond portfolio, which involved selling their low-yielding bonds despite the potential loss, and compensating for it by buying higher-interest-rate bonds on the open market.

[@larrypaul-cw9nk]

I have learned to not trust corporations. I was badly hit by the '08 financial crisis. Since 2019, I've just been focused on investing through a financial advisor, and it has been paying off, and I'm never going back to banks full time.

[@Mrshuster]

I'm intrigued by your experience. Could you possibly recommend a trustworthy advisor you've consulted with?

[@larrypaul-cw9nk]

Her name is “Vivian Carol Gioia” can't divulge much. Most likely, the internet should have her basic info, you can research if you like

[@Mrshuster]

I just Googled her name and her website came up right away. It looks interesting so far. I'm going to send a mail to her and let you know how it goes.Thanks for sharing truly!

[@lesliewhitney81]

Just get away from banks. I never thought I'd live to become like my grand mother. She was born in 1913. She saw the great depression and the engineered market collapse and the engineered bank collapses. She died in 94 and used to tell me about what it was like. And she never put a dollar in a bank in her adult life lol.

[@juliusshum8254]

Appreciate the perspective as always, as to your comment on what banks are seeing that we may not see, the banks need to meet rigorous stress testing requirements and get ready for the new capital regulations called “Basel 3 End Game”. These are all pointing to banks need to hold more capital against potential losses which translates into higher capital costs for lending in addition to higher interest rates. All in all making it less profitable to lend in the Commercial Real Estate space. The real question is, as deleverage progress in 2024 and beyond, it will likely put pressure on CRE and we may see favorable pricing. Recall this is a point Ken touched on in another video as well.

[@07wrxtr1]

JP Morgan Will always come out ontop due to its ties to the federal reserve…

[@WinterBreeze-wr1vm]

The smaller will get gobbled up like I was just told discover was going to be bought out by Capital One it will be a Dominion effect but yea chase and BOFA those two will be the last stating not sure if they will even make it we shall see

[@roseoreillysievers6057]

True

[@rm4519]

I just want to know what to do. Everyone just keeps yapping about collapse.

[@johnboy6594]

Exactly.

[@Habib-uk8yc]

😂😂😂​@@johnboy6594

[@cocotico9997]

Fact 😊

[@travishallgren1871]

If you were in a building that was going to collapse. What would you do...?

[@vincentyeo88]

For an investor: When in doubt, get out. For a newbie: When in doubt, stay out.

[@10317]

Mmmm point taken. I am a small real estate investor and I appreciate your input. Ken and Dannielle you both offer great perspective and it’s really helpful.

[@extremefocus7985]

Banks will just say "FORGET ABOUT IT!" "It's not like it's our money!"

[@robertomoralesx]

I honestly need a beginner guide to all of this information !! its crazy Ken how you can just speak the language of finance in videos like this

[@JacquelineSkene]

Have you moved out all your assets from the Bank And backup with the recommended Quantum Financial System?(ISO especially XLM and XRP)

[@jamiesweeney6286]

Mark to market, same thing in 2007, banks didn’t want to lend, started cutting business lines of credit…payroll couldn’t be paid,….rug pull, 2

[@eyelovecolorado2195]

First…. To thank Ken for all your videos! Sold everything in 2021 and now I’m ready to buy!!

[@brendasmith1533]

Great show! Definitely worth re-watching. Thank you.

[@FirstnameLamename]

I'm old enough to remember when people lost their shiz when the Big Mac went to 99 cents. I tell this story to the kids at the window when I pay $7.00 for a big mac today;

[@JacquelineSkene]

Have you moved out all your assets from the Bank And backup with the recommended Quantum Financial System?(ISO especially XLM and XRP)

[@ohiofarmer5918]

Wendy's just announced a single for 99 cents. Haven't had time to get one to see if it's some sort of mini burger..

[@theodoroseidler7072]

The main problem, as I see it, is with the bank guarantees. They were loaded with long maturity bonds accumulated over yrs of zero interest rates. If interest rates go up, the value of those bonds go down sharply. But that, also in my opinion, is a sign of incompetence as any financial institution should be able to hedge against moving interest rates. Pension funds should find themselves in the same predicament. These folks are usually gifted bailouts with your money :)

[@sandroaces]

All we gotta do to stop being manipulated by fed is stop getting into debt no matter how much interest rate is.

[@mike9132]

Then Congress needs to stop raising the debt ceiling

[@TreatsOnTheStreets]

Let em fall. We need to get back to a free market.

[@07wrxtr1]

When they fail they will confiscate assets: your stocks bonds and anything collateralized. Go watch The great taking - it won’t be like 2008… much worse

[@janetvasquez610]

No!! I want my bank

[@daveandpaige6471]

Free market is good. But I don't think too many people were happy in 1929 and years after. Soup lines are coming.

[@ronkellam8184]

If you decide to invest in T-bills, you should have more than one bank account with different banks and credit unions. You must link your Treasury account with a certain bank for funding and receipt of matured T-bill payments. If your bank does default, you can switch bank accounts for your Treasury account so your money is not tied up in the failed bank. A good idea is to create a T-bill ladder, so you would have bills maturing at different dates, but on consecutive weeks. It's a little more work, but it spreads the risk out more.

[@SigFigNewton]

Safer to stick with stocks

[@arethereanyuniquehandles]

@@SigFigNewton Ah, no. Lots of risk with stocks, and can happen fast. Has been good, but don't ignore the risk.

[@gosmarte669]

Put your money in a custodian bank so that the money is not on the banks balance sheet. Schwab has a custodian bank for example.

[@danielwilliams9052]

Have you moved out all your assets from the Bank and backup with the recommended Quantum Financial System?(ISO especially XLM and XRP)

[@jeremyhartsell2750]

If banks need deposits then why are they charging people to deposit cash and closing down some people's accounts that deposit abnormally large amounts of cash often?

[@SamTheCarnivore]

Its because of the Bank Secrecy Act. The government fines them if they accept cash deposits without filing enough suspicious activity reports. Banks have decided that cash customers are too risky to accept and will close accounts. Unfortunately this is because of government regulations and not really the banks. They are just playing it safe,

[@jwmustang1]

Not always true. I had an account with 2k in it. I didn’t touch for a yr and they started charging me a fee for no activity. I pulled the money and put it elsewhere

[@Chubbchubb2313]

​@@jwmustang1WoW !!! They charged You???

[@acheng9938]

1. Negative equity of commercial mortgages （chase and bank of America） 2. Outflow of bank deposit 3. march 11th 2024 ceasing of Bank term funding program (Silicon valley bank is domicile outside US indeed. ）

[@AbelSFR]

This is happening in SF right now. Buyers are picking up as much 40 cents on the dollar on some of these commercial deals. These kinds of deals are now spreading to Oakland. I read on Real Deal a hotel in SF sold for A 70 percent discount!

[@radodrobic2414]

Do you mean South Florida?

[@Frontslider]

the forth big one is that the bank reserve rate was lowered to zero. They have no cushion.

[@sallyannmilavec990]

I'm in a small community in TX and there is a MASSIVE MASSIVE building of apartment complexes in our town. It doesn't make any sense, prices are going down and when these hit the market, we fear the gov is going to fill it all with illegals that the American taxpayer is providing income for. MS-13 has already been arrested here. The builders of these apartments were careless, the banks were careless and it will be a dark day coming.

[@nesq4104]

Your the illegal in Texas not the other way around. Texas is stolen Mexican land. How far are you from your homeland? How many oceans and states do you cross

[@Barnfind.]

YES MAM YOU CAN BET IT WON'T BE FOR THE BETTER. SOON THEY WILL BE IN YOUR LOCAL SCHOOL BOARD, CITY COUNCIL, AND LOCAL GOVMT. THEY WILL NOT ASSIMILATE BUT WILL START CHURCHES, AND STORES, BUSINESS ALL WITH MINORITY PROGRAMS FROM GOVMT. SCHOOLS WILL BE SWAMPED AND WILL GET FREE LUNCH. ETC. ETC. ETC. WITHIN FIVE YEARS YOU WILL SEE. FIGHT BACK AND GOOD LUCK

[@timedwards752]

There are huge apartment buildings being built all across the US, most with very little parking. It really makes you wonder what is going on. How are people going to afford these apartments without transportation to a job? Unless these are being built for people who won't need or have a job....

[@davidpowers8266]

They are doing the same in Buffalo ny. They are definitely building them for immgrants and we are paying for it

[@brianwills4476]

My understanding that the loans from the Band Term funding are due 1 yr from the date of the borrowing. So all the money isn't due back on March 11th. It depends on the date of the loan.

[@BrianYamabe]

I believe the BTFP loans are due a year from when they were taken. So not all funds come due March 11

[@johnnyb33good21]

You're right. Who's to say that they don't extend this program or create a new one to push more liquidity in the market to prevent a crisis

[@mrrazr8079]

Laws are changed all the time. I was under the impression these loans were over nite with option to rollover until 11 March 2024

[@mgez919]

Banks not lending = Recession.

[@Derp-r2m]

Banks never lend. Read from the IMF, theyre arbitors. They "lend" you your own credit, you issue a security, they purchase, offer you a disbursement (NOT a deposit), you accept and sfrawman dead entity incurs interest underwritten by your signature as guarantor and agreement. However, you may rescind

[@w4gcampaign887]

Can do 1 on ppp loans allot of ppl need to understand how thts affects our economy pls... great information ❤

[@dtrout]

If the loss is going to hit the banks, why wouldn’t the bank do a 2-3 year extension at the same payment per month and run the mortgage balance higher…. allowing the business to keep going and try to claw their way to profitability through growth…. and then spread higher cost of capital across more units sold …. banks cannot afford to have a tsunami of defaults but they may be able to lose 2 percent …. for a few years, but would have the additional time to spread out losses as well as potentially saving some of the business ventures.

[@JacquelineSkene]

Have you moved out all your assets from the Bank And backup with the recommended Quantum Financial System?(ISO especially XLM and XRP)

[@daveandpaige6471]

I agree. In 2008 they didn't work with anybody. But they got reimbursed by big government. Makes no sense

[@youmayberight2434]

Thank you for this video. Great show!

[@danielwilliams9052]

Have you moved out all your assets from the Bank and backup with the recommended Quantum Financial System?(ISO especially XLM and XRP)

[@navyretired230]

I am a bit nervous about banks. Do i liquidate everything? Gold silver etc? My grandparents taught me about the real hardships of the great depression

[@JacquelineSkene]

Have you moved out all your assets from the Bank And backup with the recommended Quantum Financial System?(ISO especially XLM and XRP)

[@robc8468]

What about all the floorplan loans held by car and truck dealers sitting on massive unsold inventories sitting unsold for over a year?

[@ohiofarmer5918]

Just waiting. I have noticed that curbstone cars are less than half what they were

[@ohiofarmer5918]

I see a possibility of being the bank myself for land contract loans. Costs of maintenance and insurance keep climbing. Regulations the same

[@ezzieeddie5439]

I've been listening to Herbert Hoover lately

[@shirleylake7738]

Thank you for the information and speculations.🎉

[@southernyankee2300]

I have put the money from the sale of my home in several high interest rate savings accounts until I can find another home or some land to build on. I thought about buying gold coins feeling it might be a safer bet than keeping it in us currency but I’m unsure about that. I am not interested in risking it in the stock market, do you have any ideas of what might be a better place to park the cash? Thanks

[@TheMohamed1952]

Million dollar question .. but honestly what you are doing is the best in this weird market ..

[@shengyu668]

There is not a lot of choices. There is always risk no matter you are holding cash or real estate.

[@pikachu2003]

The collapse of the banks will mean some will Have restricted access to their money. Sure, its insured but you might be delayed in getting to it. Save some cash on hand. And break up your money between several banks. To prevent not having access to it.

[@CrystalReynoldsRealtor]

Mortgage notes!

[@TheMohamed1952]

@CrystalReynoldsRealtor Sure.. if you want to lose all your money and wash up the Wall Street crooks debt

[@ScottSeaton-b8q]

Why is the expiration of the bank term funding program an issue? For banks with loans already, they can just pre-pay their loan (there is no pre-payment penalty) and then they can just take out a new loan prior to the expiration 9:45 for the same amount and that loan won’t be due for another year.

[@manko717]

So, should the big banks be taken to court, in NYC, because they inflated their assets. Now they get written down, and will take losses.

[@daveandpaige6471]

Yes. 100 billion dollar fine.

[@Bee-ym9nq]

When do you think this will happen?

[@jayayers2511]

I heard that fdic only has enough $$ for about 2 percent of the banks. What happens when that’s gone on a big bank run?

[@michaelswami]

The huge property owners can issue debt, so they control that. However, smaller property owners depend on banks, which can change their mind.

[@chevelle592]

ken your wisdom is infinite, and im sure you have plans in place to protect yourself. i know one person who does not care and it will not be affected by these banks decisions is Dave Ramsey, with $650million in PAID FOR real estate!! i wished more companies did business like this. Ken im kinda surprised that you use the banks as much as you do, especially as careful as you are. love the info and knowledge you share.

[@danielwilliams9052]

Have you moved out all your assets from the Bank and backup with the recommended Quantum Financial System?(ISO especially XLM and XRP)

[@jamesstivaly8274]

Thanks guys I have my own business no debt whatsoever and I can’t get a loan

[@johnnyb33good21]

If your books are done correctly and your tax returns reflect that and you have Profits, banks will give you financing.

[@AX-Driver]

@@johnnyb33good21 I guess you don't remember 2008. I had tremendous equity in my properties, very good cash flow and profit and was completly blocked out of getting loans. The reason, "we have stopped making loans to anyone involved in real estate". That was the theme of every bank lender I talked with and that was 30+ and a bunch of loan brokers. Similarly, today, my go-to lenders have stopped lending. There are still options available but they are very unattractive. So, a great credit contraction is in the works. That, my friend, is truth.

[@SigFigNewton]

@@johnnyb33good21did you watch the video

[@Northstar2000]

I sold my hair to buy the dip. Now Im bald

[@honestyfirst3994]

like it!

[@johnmceiver3769]

excellent discussion

[@lithobreakerf.5373]

So are US Treasuries safe during a banking collapse? Traditionally I think they have been. He said a lot of people have their money in them, including me.

[@MrFree006]

But what are the banks doing with money that they are borrowing from the Fed?

[@keithrodgers1030]

Is it me or are we experiencing a mega "pump and dump" with regard to bank debt eg the nationalizing debt ?

[@douglasschnabel4480]

It is not correct to say that "no one lost money" when banks failed last year. Yes, the depositors were protected. But their stockholders and bondholders were wiped out. This may not be a huge thing for an entity like Signature Bank but would be huge if an entity like J P Morgan Chase or Bank of America had to be shut down.

[@paulfeasal6024]

There's billions they invested into the bigger banks and medium sized ones. Chase, B of A and Wells Fargo got over 4 billion from the government and some of the other larger banks. I dont remember the amounts giyen to trh medium and smaller banks. This was right after the crash of Silicon Valley Bank. Also keep in mind they have insurance one each person that is required by law of 250,000. Sone banks have more.

[@organizer14]

What about FDIC?

[@ZoomedOut2020]

Please correct me if I’m wrong, but the BTFP is a one year extension of collateralized loans…. from the date of issue. Hence the total amount of the funds ARE NOT DUE on 3/12/24, only those funds borrowed for one year to date. We can also see a running up of the bar tab since the FED announcement to terminate the program. It’s a train wreck, but a bit slower than folks expect.

[@rcolucci09]

How do short sales work for Multifamily? Are they different from single family?

[@MyLoganTreks]

Facts are DJT loosened the Frank Dodd Act and allowed banks to lower capital reserve limits, having a career for 20 years in banking wealth management DJT also wanted unsecured loans... Facts are I know what also caused the largest merger in a decade and less competition means higher prices for consumers

[@NedkoHristov]

What are you talking about Ken? It's a hassle to move the money? I takes me one click on Treasury direct. I'm always take the higher interest

[@Zoofactory]

Great Find this week. I really like the show. Keeping it in Layman’s Terms…. Sub Earned!!🎉

[@manko717]

Are their Assets worth the amount at the higher interest rate.

[@Shirley-v3g]

Some of these office buildings can be converted into multi-use or condos…. Why not give that a try ? / that worked well in Toronto - with H&R reit …

[@manko717]

Include their exposure the China Evergrande Group. Talk about that

[@Mikey196601]

I can see why many economists are saying bad stuff will really start happening in March

[@getmotivatedaboutlife2789]

Ken, what’s your opinion about residential Real estate investing in Lake Havasu, Kingman, and Bullhead city in Arizona?

[@caryngildea6225]

My client is selling her house here in San Diego and relocating in Lake Havasu! It is crazy expensive!

[@daveandpaige6471]

Everything super expensive. But if you got megabucks. Yes. Short term I would wait. I see a correction in all real estate. Prices have been dropping

[@twintailsanimations4973]

Visit in the summer before moving there. Havasu is one of the hottest places in the US.

[@nealweeks6632]

Are they really marking these assets to market? I understand most banks are working or extending these loans.

[@dcal7406]

JPM logo will be on the White House and capitol building at some point

[@manko717]

Rents will go higher. Landlords will raise the leases and rents.

[@FlipHackingRealEstate]

2.5 tril in resets in the next 5 years. it's roughly 500 bil/yr - private capital is rapidly growing

[@thetrain1919]

I think ultimately the banks requiring a lot more up front capital given the LTVs you’re seeing is a great thing. Too many people keep taking credit cards, idiotic car loans and student loans and it needs to stop.

[@tarawhite4419]

It hits this summer

[@toryloving3492]

Cars are overvalued, homes are overvalued, commercial real estate is overvalued. People will have negative equity in all asset classes!

[@manko717]

So why didn’t the Fed lower rates or extend to save them. They we’re borrowing hoping rates would fall.

[@cbpuzzle]

So sad that the commercial bank balance sheets will take an equity cut. They hold customers over a barrel and get govt handouts selling a money product that they don't own and is never in scarce supply. They're just sales and marketing operations. So sad.

[@danielwilliams9052]

Have you moved out all your assets from the Bank and backup with the recommended Quantum Financial System?(ISO especially XLM and XRP)

[@thedot66]

Its so easy to stay rich once you are already rich. I speak from experience.

[@quietlike]

How long in duration are BTFP loans?

[@lawrencesmith9059]

they have one more year before they must be repaid

[@georgep2389]

And the FED just Printed said money out of thin air.

[@sonofsarek]

You should talk about the rise of shadow banks giving out bad loans and how they are funded by money market funds

[@williamtillack2456]

The Bank doesn’t have to sell the asset .

[@edwardsmcreynolds1268]

What is new here! This discussion has been the case for over a 100 years. There three buckets, cash, real estate and securities. What’s your new bucket thought process?

[@lawrencesmith9059]

The banks know that real estate could fall 50% in a really bad recession.

[@ainaguru4986]

wow

[@trxmedia9430]

You guys need to wear headsets You’re going from yelling in the mic to talking too low every 3 to 5 seconds lol I have to keep adjusting the volume

[@johnmoody1010]

Not to mention Basel 3 accords

[@caldwellrepaircentercaldwe9065]

8 percent dude

[@ajmedina78]

Lower LTV means more than likely the property is overpriced. I do commercial deals in the southeast and it’s hard to find a deal at 65%. Negotiate.

[@williamtillack2456]

Why put people (Corporations) into default. Just extend the loan term. Problem solved !😅

[@FrankLoVasco]

They can't if they sold the loan to someone else -- like a Pension Fund, or Insurance Comp

[@zhenshan456]

billionaires IMO are working 2 days a week now after they became a billionaire not when they start. I believe they also have a period of time work e.g 12 hours a day. they just pick the right lane, focused and also lucky.

[@mistertexaz]

I haven’t watched the whole video, but cmon Banks aren’t going anywhere

[@manko717]

Maybe their stock value will take a big hit. So what. Rich people will take a hit. The Big Banks never fail. They always come out great.

[@bruceb85]

banks are putting up debt obligations as line of credit in exchange for loans they are using to buy treasuriess?

[@leviathan1788]

I ' _totally_ ' thought valley speak was a relic of a best-forgotten past. Danille has other ideas.

[@musashi4856]

Don't fret. Dodd-Frank will save the industry from collapse...

[@generalfeldmarschall8966]

Brian is correct. With the program ending on 11 March, those loans taken out on 11 March 2024 won't be due until 11 March 2025. 😎

[@musebrad]

Lots of information about loans and failures. What can the average person do to protect themselves? Not very helpful.

[@jessiemartinfostersr.6067]

SOUNDS LIKE THE , 80'S REPEAT ...

[@rosiegolding9389]

I got CD's for 5.65 percent and 5.25 percent. I'm okay

[@janetvasquez610]

Nice

[@daveandpaige6471]

The higher the rate I'm thinking the higher the risk. They need deposits. Jat

[@DeborahThomas-h6x]

I think we should “drill baby drill” and unleash our economy.

[@ssmy2081]

The government runs to help them. Some people with money take advantage of this situation and make more money and some lose their roofs.

[@TheMohamed1952]

Exactly more bailouts .. more money to real estate and stock owners .. rest of the country in the 🗑 ..

[@jessiemartinfostersr.6067]

CONGRESS , IS CHECKING IN ON THE BANKS ,,, DIGITOL IS GOING TO BE LIMITED TO ONLY INTER BANKING BUSINESS ,,,

[@berth4280]

Sorry i justt can't .

[@patjolly]

When you say "no one lost deposits", you are talking ONLY US citizens with deposits in US banks

[@darthnegativehunter8659]

it will spread to the larger banks if they decide to acquire the smaller ones. zero interest. who buys it? whoever does it gets hurt

[@randyreynolds1045]

Hope not

[@clauthequeen]

Don’t trust your bank.

[@XRP-Alchemy]

Cascading Liquidity Crisis? Ripple XRP to the Rescue. ♒️ ODL: On-Demand Liquidity.

[@danielwilliams9052]

Have you moved out all your assets from the Bank and backup with the recommended Quantum Financial System?(ISO especially XLM and XRP)

[@XRP-Alchemy]

@@danielwilliams9052 BYOB: Be Your Own Bank with ISO gold standard XRP.

[@realestatetraining6103]

People need to have there cash reserves on game