They Are Taking Advantage Of The Bank Crisis (Behind Your Back) | The Economic Ninja

There are a lot of changes happening in the banking industry right now, and I want you to understand there are no surprises with the Federal Reserve. However, they are lying to you right now. Like a story out of Barron’s that says that Powell says he’s been caught by surprise by bank failures. But he was just also testifying and speaking before Congress and saying that he is sure that there will be more bank failures.

We’re in a very serious time right now. And how you prepare, how you pay attention will dictate your success or your utter failure during this next crash, because this crash will be worse than all of 2008 combined. I’ve got a story out of CNBC, and it’s entitled why private equity has been involved in every recent bank deal. And the facts are, they do not want you understanding the changes that we are about to witness over the next handful of months as the federal reserve puts a very serious task on the banks.

And that is, I know this is going to sound crazy. You need to hold back around 3% of your deposits for an emergency. I know that sounds crazy because you think 3% is nothing, but to a banking system that is actually collapsing, it’s not teetering, it’s collapsing right now. It started in 2023, and in 2024 it started with a bang with NYCB Bank. I want you to understand that when this banking crisis hits full tilt, and the Federal Reserve does want it to happen because they want consolidation, they want more control.

And control comes through fewer banks being available, fewer options being around for you. When this goes full tilt, banks will, and they will have 100% legitimate reason to do it. Scale back their spending. Scale back their. And when I mean spending, I’m referring to giving you loans. When they slow the amount of loans available for people around the country, the country’s economy utterly collapses. So would you rather be ready for it, or you want to be sitting on the sideline? As I’m going to read this story, I want to remind you, I’m going to put a link down below to my newsletter.

There are links every once in a while that I want to share with you, but I actually cannot put them on platforms because platforms do not want you deviating away from their platform form like this one we’re on right now. So I can’t send you a news link, so I’m going to put it in newsletters. Also, keep you abreast of bullet points of what I covered that day.

If you want to go sign up for the newsletter, go take a look at that down below. I want to be able to bring you every tool you can have or you need to succeed. So here we go out of CNBC, the story is entitled why private equity has been involved in every recent bank deal. And when we say recent bank deal, it’s regarding bank deals that are collapsing.

I’m going to go through the story and I’m going to share some insights that they don’t want to tell you on the news. It says, the $1 billion plus injection that New York community Bank announced Wednesday because they need a bailout, they need help, right? Is the latest example of private equity players coming to the need of a wounded american lender. And that photo that I put it’s very important on the thumbnail of Steve Mnuchin giving a little fist bump to Jerome Powell with their awesome masks on, their security blankets.

You have to understand, these are all friends. They’re all helping each other. And so one runs one propaganda ad campaign over here, another one does another, and then they work together to steal the money of the american people. Says, led by $450,000,000 from ex Treasury Secretary Steve Mnuchin’s Liberty Strategic Capital, a group of private investors are plowing fresh funds into NYCB. The move soothed concerns about bank finances, and its shares closed higher on Wednesdays after a steep decline earlier in the day.

First off, I want you to understand, please, please understand it. And if you understand it, type one. If you don’t, type two. And type two doesn’t mean anything bad, but you need to start to realize this. This isn’t a private equity group that just goes and buys shares to help out the bank. It’s tied to certain assets of the bank. There’s collateral involved, there’s a payback, period. Private equity is smart money.

Right now, private equity is running anywhere between twelve and 18%. I’m sure there’s even higher the riskier you go. But you have to realize, when people like myself or accredited investors go and take their money and they put it into private equity firms, if they’re going to put it into something risky, like a collapsing bank, they want some serious reassurance, either super high interest or they want a piece, they’re going to have some collateral, because if that bank goes down, they want to be able to grab onto something.

It’s very similar to what’s happening with other big banks that come in and, oh, wasn’t that nice if Morgan Chase, you know, bailed out Silicon Valley bank? No, they got the cream of the crop. They’re smart. They know what they’re doing. Jamie Dimon ain’t dumb. And so he went out and he got the cream of the crop from that bank. And if you’ll notice, not all the assets sold.

A lot of it still had to go. And the FDIC, under receivership, had to go and dole it out or find buyers for it, find buyers for it. For pennies on the dollar. Okay? This is very, very important that people understand how this works. So the story goes on. It says that cash infusion follows last year’s acquisition of Pack west by Bank of California, which was anchored by 400 million from Warburg, Pincus and Centerbridge Partners.

A January merger between First Sun Capital and Home street also tapped 175,000,000 from Wellington management. Just so you know, I will be putting money into certain private equity groups during this banking crisis when everything’s hit rock bottom, after the dust has cleared, before people start buying in again. A January merger between first on capital and Home street also tapped 175,000,000 from Wellington management. Like I just said, speed and discretion.

Think about this. Speed and discretion are key to these deals, according to advisors, to several recent transactions and external experts. Let me explain this, because nobody seems to be doing this on the Internet, of course, because they want discretion. Speed and discretion. Speed has to deal with. Inject money into my failing bank right now, fast, and you’ll get the best deal. Because we can’t let the public know that we’re failing.

It’s just going to look like you think our bank is awesome or maybe we’ve fallen on hard times, but you believe in us and do it fast so that the stock price doesn’t fall. That’s the number one key takeaway that you need to take away here. They don’t want stock price falling. Stock price falls. It brings a lot of unwanted attention from regulators and the public. Okay. Also, if you notice, NYCB just said that they had 7% of their deposits pulled in the last month.

Since they’ve been getting a lot of bad press. But don’t worry, they say it’s not a bank run. The pundits are out there telling you it’s not a bank run. It’s okay. It’s just 7%. It’s just 7%. All right. I told you it’s going to get worse. A month ago I said it was going to get worse and it’s getting worse. Okay. And what’s happening as NYCB goes, other banks are being flagged by credit agencies, their health or lack thereof.

Jerome Powell has even just said, and this is out of CNBC. I’m going to be doing a story about this later. The housing market is in a very difficult situation. Weird. And he says, I am sure there will be bank failures. Absolutely he’s sure. But yet over you look on the other side. Barron’s right here, just titled yesterday’s story. Powell says he’s been caught by surprise by bank failures, sharp inflation decline.

He’s been surprised by that. No, he hasn’t, because I’ve been teaching this for years. When the interest rates shoot up, inflation comes back real fast. It snaps back. And when I mean real fast, I’m talking about in a year’s time, bank failures. He’s not surprised by, because when interest rates go up, people borrow less. But they want to keep you very, very confused. And this is very important that you get this through your mind, because all of us get it inside of us, this understanding and knowledge, because what happens is now we start making financial and life decisions based off of truth and facts, circumstances, and we can then absolutely crush it and dominate it and be ready for it because you’re going to need a clear mind when everyone else is losing their minds.

Do you agree with that type? I agree. If you get that I need to have a clear mind when other people are losing their minds. That’s the difference between success and failure. Okay? It doesn’t matter how much money you’ve got in the bank. If you’re looking upward, you’re doing good. If you’re looking down, I don’t care if you’re a multimultimillionaire, you’re going to lose. Everything’s going to be bad if you panic.

All right? That is what’s the most important thing to take away from this right now. Actually, there’s a lot in here. So again, speed and discretion, they say. So I explained the speed for the stocks crashing, the discretion part again, we don’t want our bad laundry being aired by the media. So please, we’re going to give you the best deal. You’re not going to say anything, and you’re going to walk away with well into double digit rates of return this year.

Okay? Now, I’m going to tell you that personally, I am not in any private equity deals right now because I believe as this economy collapses, and I believe it is going to be a doozy in the next year or two. And I say year two because it’s collapsing right now. It takes a long time because of all this discretion, all these secret meetings that are going on for the public to figure out.

And when the public figured out, it is crazy, it’s wacky. I remember the difference. From 2005, 2008, everyone thought I was a nutball. Then in 2008, when Lehman Brothers went down, everybody was talking about it at the office. Everybody was talking about at the fire station, everybody was talking about on the street. It was insane. Everybody knew because the masses figured it out. I want you to know all this stuff before the masses.

So when it’s going nuts, we’ll have secret fun meetings and be crushing it, okay? Because that’s nothing that people are going to want to see on the Internet. So that’s why they want the discretion. They said, according to advisors with recent transactions and external experts, while selling stock into public markets could theoretically be cheaper source of capital. Now think about this. This is so very serious. While selling stock, we’re talking about a bank that’s failing, right? Needs to raise money.

It says, while selling its bank stock into public markets could theoretically, theoretically be cheaper. It is cheaper. A cheaper source of capital. Okay? It’s simply not advisable to most banks right now. Let me explain this. There’s no theoretical. If a bank is collapsing, it needs to make money. It’s dirt cheap. You want to know why? When you print shares, it costs you nothing. You get money. Now, the downside is, as you’re printing shares, stockholders go, well, wait a minute.

Savvy investors go, okay, you’re diluting your stock, right? But there are ways that they know how to do it to where it doesn’t look like they’re printing a ton of stock and it costs them nothing. They don’t have to pay back that stock. They don’t have to buy back that stock. If they have a bank turnaround, they get away with it scot free. Free money that they get to use to bolster their bottom line right now, and they don’t ever have to buy it back.

They don’t have to. They should, because it brings value later on. But the reason why is because they know if they sell that stock, it’s going to look as a desperate effort. So they would rather spend more money on the backside. Think about this. Only adding to their balance sheet woes by bringing in public equity, paying them very high rates of return, plus attaching, guaranteeing that debt somehow through something, they have some type of asset on their balance sheet.

It behooves them to hide this from you. And it’s not just NYCB right now. Tons of banks are doing this right behind the scenes. We are in the middle of a crazy banking crisis. It says public markets are too slow for this kind of capital raise, said Stephen Kelly of Yale program on financial stability. They’re great if you’re doing an IPo and you aren’t in a sensitive environment.

I mean, he’s telling you right now how bad this is. Furthermore, if a bank is known to be actively raising capital before being able to close a deal, the stock could face intense pressure and speculation about its balance sheet. That happened to Silicon Valley bank, whose failure to raise funding last year was effectively its death. Kneel. It’s exactly what I was explaining. I don’t read these stories before I read them to you on Wednesday.

Headlines around noon that NYCB was seeking capital sent its shares down 42% before trading was halted. Now please, I want you to understand this is a regional bank, but it’s a large regional bank and this is happening right now, right in front of us. We went through all of last year going and explaining how bad 2020 three’s banking crisis was and I said it starts again in 2024, a whole new wave and it is now starting and this is going to lead to other banks.

The question is, what banks next? If you know of a bank that you think is having trouble, please put it down below and I’ll go look into it and start covering it. If you want to sign up for the newsletter, the link is down below where I can send you important links that I don’t think certain powers of b want you to focus on. I’ll be sending those in my newsletters and keeping you abreast of what’s going on with the channel and other news events.

I hope you have a great day. The economic ninja is out. Bye. .

See more of The Economic Ninja on their Public Channel and the MPN The Economic Ninja channel.