Credit Unions are Buying Banks – Your Bank Might Be at Risk!
Summary
➡ The article discusses two main issues: the rising problem with auto insurance and the decreasing reliability of electric vehicles. One in five car accidents now result in the car being written off due to the complexity and cost of repairs, a trend that is predicted to worsen. Additionally, Tesla’s Model 3 and Model Y are reportedly only charging to 64% of their original capacity after two years of use. The article also mentions the dishonesty of car companies, such as Toyota, who have been found to lie about their testing results.
➡ Silicon Valley Bank and First Republic bought bonds that unexpectedly lost value. Needing cash, they sold these bonds at a loss, resulting in their friends getting paid and the public having to cover the taxes. The speaker warns that similar situations could occur with auto companies, potentially leading to faulty car parts and accidents. They express frustration at the lack of accountability for these actions.
Transcript
But there’s been new regulatory changes that have made it so that credit unions can purchase a bank. The non-profit can buy the profit for-profit bank. Which is wild when you think about that because it absolutely makes no sense that this is happening. You can say, oh big deal, what’s it going to happen once or twice a year? In 2024 it has happened 11 times already that a credit union has purchased a bank. Really. That’s also 24% almost a quarter of all the banking mergers, purchases, and 2020 so far. So if you see, there’s a trend going on with this.
And one thing with credit unions is that generally are they safer? Would I put my money in a credit union? Yes. Over a bank? Yes. Everything has problems now. And now that they’re letting them buy the bad guys, buy the for-profit guys, and still call themselves a non-profit, it is crazy that they’re allowing this right now. And I don’t think it’s right personally, but it’s happening. It’s happening right before our eyes. Now the FDIC just issued a report that went under the radar. And what the report says is that all these banks have unrealized losses and that it’s growing.
It grew by 39 billion dollars in the first quarter of 2024. 39 billion dollars that the unrealized losses. What is that? Bank buys an asset. Bank buys something of value, an asset, and the price they paid was here, now it’s worth here. So oh okay it’s gone down. That’s an unrealized loss. Now the thing about this is that those unrealized losses went up 39 billion dollars to the tune of 517 billion dollars right now for these banks. Various sizes, various problems, but that’s just what we know about in 2024.
So you’re gonna see more and more of this going on, and it’s going in the wrong direction. Now the most disturbing part of this whole thing, yes they’re buying, yes credit unions are buying banks, and I think that this is a sign of the times, but the number of banks that have problems that are on the watch list, that have questionable problems right now, has grown to 62 from 26, 39, now 62 banks did not fail the stress test, are on the verge of having real difficulties, and you know listen, we want you to understand that this is only you know less than 2% of all banks, it’s no big deal.
Guys, a bank run. If 1% of the people took their money out of banks, it would destroy the system, it would be a massive bank run. That’s something that people don’t want to admit and don’t want to realize. I’m up in Laguna at the montage, it’s overcast here, it’s beautiful, cool in the 60s, not nice, just stunning, such a great place to visit, but we got to talk about this, because you have to look at the banking situation. Nobody wants to sit there and talk about the severity of this, and is my bank safe? Who knows? Okay, the list of these banks, you have to protect yourself.
You know, I had a subscriber, didn’t give me his name, so I can’t say his name, but he, their ATM is now closed in the weekends, no ATM access in the weekends, so he says, so Dan, it’s a bank holiday for me to hit the ATM. What would you do if you couldn’t get money from Friday night until Monday morning? You know, not everybody needs money, Dan, not everybody’s gonna hit the ATM. Yeah, sometimes things come up, think about this, think about this, I had, you know, my son had a car problem, go hit the ATM, son, I can send you cash if you need it, if you’re short, until payday.
Well, he hit the ATM, okay, you know, on a Saturday night, we’re trying to get his car fixed. Everybody does this, it happens to all of us, but you’ve got to store some cash inside the house right now, because this is not going in the right direction. The banks are having troubles right now. And now you find out that the banks, you know, can be purchased by the credit unions. Now, think about this, during COVID, we learned of the term community bank. Well, isn’t that just a friendly bank, Dan, that that’s out there and to serve a smaller community? That’s one type of community bank.
The other community banks are basically nonprofit banks that are out there. And the idea with it is that they’re there to help. They’re there to give loans to smaller businesses, to startups, to things like that. That’s a community bank right now. And again, the nonprofits are the way to go. If you’re looking for money right now, it’s drying up out there. And it is seizing, you know, it’s not available like it used to be. I have a buddy who is starting a business right now, and he’s going to look for equipment.
And he has money inside of a credit union. And he walked into the credit union and said, Hey, if I want to borrow this type of money and not really pull it out of my credit union, what would you give me the loan for? And unbelievable terms, 3%, because he has the money in the bank. Okay, because if he doesn’t pay, I’m just going to suck the money out of the account, which, okay, call secured, call it whatever you want. But do I have to let family members know, no, this is your account.
Nobody else needs to go about this. Do you want us to issue the check? Do you want to do it today? We can get the paperwork going for you. That’s the way to go. Okay. But again, it took him driving down there, not doing this over the phone, but walking in there and getting that approved. Okay, so you’re going to see more issues right now, but it’s a lot more to cover. Okay, tell me what you think about this so far. Let’s talk about our sponsor Patriot Gold Group. Think about this.
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You know, people think because it’s buying gold, it must be difficult. It’s very easy. And when you have someone with great customer service like that, it makes it even easier. Contact Patriot Gold Group today. Think of the instability globally that we are all going through right now. You need to protect yourself and protect your family. The best place to do that is Patriot Gold Group. Give them a phone call today. Let them know that I call 888-301431. Do it now before it’s too late, guys. Contact Patriot Gold. One thing that we’ve talked a tremendous amount about is the price of insurance and how some people are going without insurance.
I am telling you, this is the biggest mistake you can do is to go without insurance. It is idiotic for 1000 reasons because nobody intends to have an accident. Nobody intends to have somebody slip and fall or get hurt at their home or have your dog bite somebody. Nobody intends for that to happen. Ah, you know what? I’m just going to cover it myself. For you to think that, you know, rich people, oh, they’re just going to self-insure. They don’t do this. They have insurance, guys. That’s how they run their lives.
Now, with that being said, we are seeing crazy things right now where you’re having these assessments on condos. The Cricket Club is in Florida. The Cricket Club is an old condo association. And I found a great story where they’re getting hit with $132,000 assessments. People buy $200,000 condos. Oh, I’m going to retire. I can plant myself here. No, you need to come up with another $132,000. 60% of your original purchase to fix this. Now, a lot of things happened with this. You had delays of construction. You had people putting off, you know, improvements.
No, no, no, no, no. What happened was, is that these people got hit with all these repairs. You had the condo collapse two years ago. And that put an end to everything, guys. It just did. It just did. So this is absolutely stunning out here. And it just is just a beautiful spot to park. And, and I bring my fake internet out here, my little box, and I can work from here. It’s absolutely amazing. But, you know, this is a problem right now with this insurance. Now, here’s a staggering number.
Think about this right now. With auto insurance, one in five car accidents right now, one in five, 20%. They are totaling the car completely. Done. Hey, these cars are too complex to fix right now. This is a five fold over 20 years ago. Okay, well, cars are just gotten so much more sophisticated. No, they’re, you can’t get parts. They’re so difficult to fix. They’d rather just write it off. So that’s one reason that we’re having real problems with auto insurance is that one in five is getting written off.
Isn’t that terrible? Now, here’s the worst part about this. Read the story below because it’s great. And it’s boring people like the, you know, adjusters, and the people that appraise vehicles and people that do accidents. But the story talks about how this trend is going to get worse. It’s going to get to the point that within a couple of years, you’re going to see this jump to 30% of all vehicles will be totaled when you get into an accident. Okay, get ready for, you know, your $15,000 a year premium.
No one, Hey, you know, bought some insurance because I’m going to go hit some people. Nobody does that, guys, they all do it to protect themselves. And for the people that don’t have auto insurance, or homeowners insurance, even renters insurance for that matter. I’m telling you, do you have a cat? Has this cat ever scratched anybody? You have a dog, dog ever bite anybody? Here in California, it’s called strict liability. Your dog bites anybody, we don’t care what the reason was. You’re liable. That’s how bad this is.
Next auto thing that I found absolutely fascinating. Think about this. Tesla has a problem with this model three and model y, where it is after two years. So the third year of use, you’re seeing that these car batteries are only charging to maximum capacity of 64% of their original charging amount. What? So you cannot get a full charge on a two year old Tesla. Isn’t that wild to think about guys? Terrible. Read the story below. This is staggering. When you think about this, you know, Volkswagen lied about their numbers.
That’s one thing. Hey, listen, we got, we got 38 in the city, you know, they did things like that, that were bad and got caught and had whistleblowers come forward and say, yeah, we fudge those numbers. Okay, that’s one thing. But when you buy a new vehicle and within two years, you’re not going to get your full miles per gallon or charge amount. Think about this. If you bought a Toyota today and you found out that the Toyota was going to get Twitter crawlers, just pick that car with thin air and you were only going to get 64% of the mileage that you were promised from the day you purchased it.
You’d lose your mind. You’d go, what is this? What’s wrong with my car? Well, this is an EV car, sir. It’s different. They don’t last as long, you know, listen to the silence. Yeah, the silence of you walking, we’re only getting 64% of your charge amount. Has anybody out there that has a Tesla? Have you experienced this? What story did they tell you about this? What is the, you know, you know, the lullaby that they gave you at night to pacify you so you’re not jumping out a building because that’s terrible, guys.
It’s absolutely terrible. But add that story to the fact that they don’t want to fix cars right now. They don’t want to do this. They just want to write your check and write the car. Now, the problem with that and with the last two years is that two years ago when there was a real inventory problem with cars and you could not get a vehicle. People were on like they were sniffing glue. They were buying cars over the sticker price. It’s the tune of $40,000, $50,000. I found a Bronco that had a $60,000 up charge on the sticker.
Enjoy. You want the car? $60,000 over. Okay. How do you insure that car? Okay. Well, I talked to my insurance man and he said, well, we’re going to give him the value of the car, Dan. What about the $60,000? That’s their responsibility, Dan. That’s not what the car is worth right now. Okay. So do you see where this is headed, guys? Everybody’s doing poorly. The banks are doing poorly. The insurance companies are doing poorly. Businesses off. Restaurants are closing all around you. You know, people need to charge more and they’re trying to get creative on what they’re doing.
You’re going to have municipalities invent taxes that we’ve never seen before. You’re going to have things come out of thin air. You’re going to have charges, you know, from everything. Your school, your kids, not this year because the school year is done. Wait till next year and your kids want to play sports. I am telling you the fees that they’re going to charge to hop on a bus and to drive your kid to a sporting event. You know, back when my kid did this in 2019 was the last year he did it.
They wanted $128 for that bus ride. Okay. For his team. Oh wow. Your son changed sports. We need a new bus fee because you’re out of your mind. Okay. It’s one bus fee and pull all the kids. Show me how kids are paying multiple bus fees. Oh yeah. I guess you’re right Dan. Okay. So they’re going to create ways to tax you, to bill you, to do everything. Picking up your trash. Um, you know, everything your water bill, everything they’re going to come up with ways because they’re not making money and it’s not just your household.
It’s everybody and inflation is killing everything right now. It is absolutely doing a number on each and every one of us right now, but protect yourself. I’m telling you guys go out and make sure I’ve said this 50 times on this channel, make sure you have money in your house. If there is a bank crisis, that there are bank runs, if there are bank closures or if you’re ATM, hey, you know what? We’re going to just close the ATM on the weekend. It’s not convenient anymore.
So that’s a bank holiday guys, as far as that. But what I tell people, if you are on a fixed income, think about this, try to have 10% of your income in your house in cash. Okay, is gold better? You know, yes, I love gold. I love silver. I love all that stuff. But as far as green cash to pay your bills, large bills, small bills, quarters, man, I’m telling you, I just use quarters here to park today. Okay. I’m glad I had that and didn’t have to use my credit card for the minimum, you know, charge.
You know what I mean? Think about this, guys. This is what we’re living through. I’m going to finish this video with one more car story and Akio Toyota, T-O-Y-O-D-A, not O-T-A like the car company. He is the CEO of Toyota and he came out and apologized because Toyota, the Japanese car company, the largest car company in the world, just lied about testing on their cars. Crash testing, acceleration testing, power testing, airbag testing, and fudged it on nine different models of the car. This is so bad.
And again, apologize. We will do better. But they stopped production on three of the vehicles right now. And again, read the story below. You can find out what they are. But again, who’s telling the truth right now? You got Tesla at 64% of the charge amount after two years. Does that give you any any faith in an electric vehicle at all? No. How about Toyota? I love Toyota. I love the Prius. I hate the plug-in Prius. I had a friend of mine that had one of those.
It was a headache to use that thing. But the regular, you know, hybrid car is great, man. It gets a lot of gas mileage. They’re reliable. And again, I always thought they were safe cars that they got into accidents. But now Mr. Toyota, you know, is apologizing because they fudged those numbers. How do you feel about that? How do you feel about a car company lying to us and telling us one thing and it being another? How about banks that have unrealized losses? You know, I want you to think about something.
You know, we’ve heard talk about capital gains taxes and how they want to, you know, do things to like, hey, if you have profits on your capital gains taxes, we want to tax you on that. Now, think about unrealized profits. So if you buy something for $10 and it’s worth $50, they want to tax you on that for the $40. You haven’t sold it. You haven’t had the the gain yet. But they want to tax from it. What do you do with these unrealized losses where people are going to start having to sell these things? What happened with Silicon Valley Bank and First Republic is very simple.
They bought bonds and the bonds don’t never go down in value. And guess what? They did go down in value, guys. So now that they went down in value and they needed liquidity, they needed cash, they need to pay bills. They sold them. And after they sold them, they sold them at a loss and all their friends got paid off. And you and I got caught paying the taxes on that. This is the worst thing about this. You know, it’s funny, the big short is running on cable again right now.
And I taped it for a few friends. Hey, you want to watch Big Short when you come over, watch it. You know, but when you see this and how they just fleeced us and nobody went to jail, nobody paid, you know, nobody. There was no Senate committee that really did anything. It’s a joke. This is what’s going to happen with these auto companies. Now, Toyota, the car company, thinks that they’re doing us a favor by telling us this. It’s terrible, guys, because you could see, you know, people that bought cars, what have you gotten to an accident? It was because of one of these faulty things that they made up, you know, and said it was okay.
Acceleration, airbags, crumple zone problems. Ooh, yeah, it’s going to be John’s Toyota. Okay. Don’t forget that. Okay. Please don’t forget to hit the like button. Please don’t forget to subscribe to this channel. And this is beautiful. Just stunning. Overcast, beautiful day, very cool, low 60s. Email me at hello at iallegedly.com. I’ll see you guys very soon. [tr:trw].
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