You did not have it in FDIC insured accounts. Most people don’t know. You just don’t put money in a bank and it’s FDIC insured. We’re going to take part of it to fund the bank, and we’re going to give you worthless bank stocks. It’s happened before in Greece and Cyprus. That was a test bed to see what the general public would do, just like what happened a handful of years ago when everyone was forced to wear masks. I’m not joking. These are social experiments, and I think a lot of people are going to straight up fail in this, all right? So let’s go before here, and I’ve got some important notes, because this is a very fancy channel, and we’re going to talk about why people are stressing out and thinking that an impending banking collapse in America is coming soon.

So it says here, first off, they’re talking about liquidity, and they’re saying that liquidity is tightening. They say that higher interest rates and reduced central bank stimulus means less easy money in the system. That’s very true. People are also saying that banks right now have to compete harder for deposits and funding, and you’re seeing that everywhere, where people are going, hey, I walk into my bank and there’s all these signs that if you open a checking account or savings account, we’re going to give you this, this, and this, whereas that didn’t even exist after the pandemic.

Think about that. The money was flowing so easily through the system. Now banks are freaking out because they don’t have enough people depositing money and keeping in their banks so that they can go and loan out their money at interest to just keep their doors open, all right? They’re also talking about tighter liquidity, making weaker institutions more vulnerable. Now, we just had a bank close down. It was a small bank in Chicago, and people on the internet were freaking out, and saying it was over silver. That was all a lie. It was all rumors.

It was not true. That bank in Chicago had nothing to do with silver, and it is normal. Every year, banks do close down, and right now, we’re having actually the lowest amount of banks close, shut their doors, because the Federal Reserve is already injecting money through a program because banks don’t trust each other, all right? So we’re actually already in a very bad situation, but you don’t see it because the Fed is injecting that liquidity into their banks. That should tell you something right there about the banking system being weak. Unrealized bond losses.

This is a very important note because in the last handful of years, we’ve seen rates rise, and whoever, whatever banks, or I’ll just read this, banks bought large amounts of low-interest bonds when rates were near zero. As rates rose, the bond values fell. Now, of course, the banks can keep them through maturity, and eventually, they’ll pay back their original investment plus the interest rates that they agreed to. But here’s the problem. Think about this. What if the bank needs it sooner than waiting for that bond to mature? What if there are 10-year bonds or 30-year bonds, right? That is the issue right there.

So banks are holding on to a bunch of unrealized gains, or sorry, unrealized losses because the value of those bonds have fallen because interest rates have risen, okay? So that’s a very serious issue. A deposit flight risk is feared right now. Customers can now move money instantly with online banking, and this is why there’s such a battle right now over a bill that is going to allow or not allow people to make interest on crypto stablecoins. Because banks fear that if you know that you can go and deposit a stablecoin onto an exchange that allows you to get a good rate of return, I think right now it’s paying darn near 4%, right? It’s paying as much as the T-bill, and you don’t even have to wait.

You’re getting that percentage rate broken up over every single day, and it’s liquid right now. That scares banks because people will figure out, oh my gosh, I can make more money easier putting my money on an exchange like Coinbase or other exchanges in the US and get a great rate of return and have it really liquid. They’re scared that there will be a deposit run or a withdrawal run on these banks, and that would turn things down fast. They’re even saying that if confidence continues to drop in the banks, withdrawals can accelerate rapidly. And we saw this happen with SBB, Silicon Valley Bank, SVB, a couple of years ago, and this is a real serious threat.

There’s also, they’re saying even healthy banks can face stress if withdrawals spike, so it’s not just banks that are in the hurt locker that are exposed to this. Hey, real quick, I want to throw something out to you. I’ve got a little bit of time left on the Money Mindset Mastery program. Links down below, it’s $9. I know it’s went up a lot, and it’s going to go up again. There’s guaranteed 100 slots down below if you want to join this. And it’s 10 modules. You get to watch one module per day, and then you go to watch it as many times as you want after that.

But I believe so strongly that it is going to change the way you think about investing and money forever. And I feel so strongly about it. If within 30 days you buy it and you say, Ninja, this isn’t going to change my life, this wasn’t worth the $9. It didn’t change anything. I’m not going to be able to make more money or create more money after I took this. We’ll give you your money back, okay, as long as it’s within 30 days, all right, because that’s how the payment processing works. All right, another thing about banks that people are freaking out right now, the too-big-to-fail debate is starting to ramp up.

People are now questioning whether the government would step in again like 2008. Like I said before, this could go from a bank bailout to a bank bailout, which would take some of your deposits, your money, and they would rehypothecate the bank, re-stabilize the bank, and you would in turn just get worthless bank shares. That’s not a good thing. And people now are also concerned about the moral hazard. You know, reducing rescuing banks encourages future risk-taking, and you can apply this to the car industry. The car industry, ever since the late 70s, has been bailed out multiple times, the 70s, 80s, the mid-90s, and 2008.

There was some kind of rescue plan that the government came to the car manufacturer’s rescue, and it wasn’t let the best car survive, the best company survive. We’ve seen horrible things where people were wiped out with General Motorstock. It was just cancelled on them. And then later on, the government gave them a bailout, and then later on, GM just issued new shares and sold those to pay off the debt. It’s absolutely horrendous, and I believe you’re going to see that actually happen with the banks again. And then you’ve got confidence cycles, and this is really important because a lot of people after COVID got really smart.

They got a lot more educated because schools didn’t teach any of us about finance and economics, so they went to YouTube, and they went to other places to learn about how these economic cycles work. And now, they’re starting to be concerned about banking is built on trust, but if headlines spark fear, perception alone can create instability. And right now, we’ve got a lot of AI channels out there deceiving people and getting them to do things that they normally wouldn’t do because they’re using fear to motivate. You know, I have used tons of titles to get people to click, only to say, look, this is the fear that’s out in front of you.

This is how you win from it. And one of the ways you win is if you feel that there’s a banking run, well, first off, make sure that you’re in an FDIC insured account. And if you’ve got more money than that, then go open up a second account with another bank. I mean, simple things like that that people don’t realize how at risk they are. And they’re so simple to do, and then what happens is you sleep better at night. That’s important, right? Now, last but not least, the commercial real estate exposure has to be gone over because of banks.

Banks hold loans tied to office and retail properties. Falling property values increase a default risk. Well, just so you know, those are regional banks. You’ve got small local banks, right? Then you’ve got larger regional banks, and then you have the multinational massive banks like JPMorgan Chase, well, as Fargo, stuff like that, Bank of America. By and large, your greatest risk to commercial real estate as far as a bank is concerned is your regional banks. They are the ones that put out the most loans for commercial real estate that have absolutely created in the last four years because of COVID.

And because of work at home and all of the new tech, and especially with AI, fewer and fewer people need large commercial. This is one of the aspects of the economy that I’m going to dive into soon, is buying up as much commercial real estate as I can during this next downturn because it’s already bad, but it’s going to get worse as banks tighten the lending. Guys, I hope you understand this is where the internet is going. This is where the massive amounts of fear are, and it’s not in the media yet.

When it hits the media, the average person that doesn’t pay attention is going to start freaking out and go running to the bank and pulling deposits, and that’s when you’re going to have a real bank run. Hopefully you got something out of this. The Economic Ninja is out, and if you want that link down below, it’s still $9 for a little bit of time for the Money Mindset Mastery Course. Bye. [tr:trw].

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