Welcome back to the Mad core show where we talk fast and we don't skip class because education is important and you should probably take it pretty seriously anyway. I Digress: The month of May started off with a lot of turbulence. The pilots flying this particular simulation were definitely screaming May Day Here's what happened: First Republic Bank saw what Svb was doing when that bank blew up and they basically said hold my beer and then on the other side of the markets we had Pepe a cryptocurrency basically screaming I'm the new crypto Overlord and then just for some sprinklers on top we have an Fomc meaning we have an unemployment report and we have a bunch of earnings going on. So as you can tell, what a hectic way to kick off the new month.

Obviously, you should buckle up before we hop into all of it because I don't want you to lose your socks and while you're doing that, make sure you destroy the like button. With all that being said, let's ride foreign. How many of you been updating your bankruptcy bingo card? But make sure you mark off FRC because we might be getting a winner pretty soon. All jokes aside, First, Republic's failure was the major news not only of today, but pretty much the entire weekend as I'm filming this.

we don't have 100 of the picture, but we have the majority of the gist if you will. So I just want to know in future videos. I Might have a couple updates here and there, but this is the major things you're gonna need to know about: JPMorgan FRC the FDIC and really what it means for you for me and everyone else potentially involved. After burning the midnight oil pretty much all night, we found out early this morning that the government the FDIC First Republic Bank JP Morgan and a handful of other Banks came to a conclusion for the end of this bank failure story.

JP Morgan ends first Republic's turmoil after FDI seizure, which means that First Republic officially joins a list of one of the biggest bank failures like ever. Now the number one spot does go to Washington Mutual which had an asset count of 307 billion dollars and now number two. Svb was there for a little bit, but it didn't stay there for long. officially.

now number two is First Republic which before the collapse had a total asset count of 229 billion. Here's a pretty wild piece of information for you: The total assets of 511 U.S Bank failures from 2009 to 2022 was 339 billion, but the total assets of the three U.S Bank failures in the last two months has been 548 billion dollars. If that doesn't tell you that something funky's going on in our system I Don't know what will. for those of you who want the details that we currently have for the entire situation I Found two phenomenal breakdowns: FDIC accepts JPMorgan deal to acquire First Republic JP Morgan pay 10.6 billion to the FDIC FDIC to provide 50 billion five-year fixed rate financing JP Morgan to repay prior 25 billion deposit injection from large U.S Banks First Republic 84 branches in eight states will reopen today.

May 1st as branches of JP Morgan all deposits once again, all deposits a First Republic will become depositors of JP Morgan and will have full and instant access to their deposits. JP Morgan says deal has fair value mark on acquired loans at roughly 22 billion JPMorgan will not assume first Republic's corporate debt or preferred stock in acquiring First Republic Bank JP Morgan has bypassed laws against acquiring Bank while controlling 10 percent of U.S deposits. I Find this part to be kind of interesting because before we got into the weekend, this was a rule. This was a regulation in the U.S that no singular Bank could exceed 10 of all deposits.

and I guess something changed from Friday to this morning where they're like, all right. In the meantime, we'll forget about it. and most likely it's because JPM was the only one big enough who could kind of acquire and potentially handle the size of this situation. JPM Shared 13 billion in losses with the FDIC Received a 50 billion dollar loan from the FDIC effectively bought back its own deposits.

expects to profit 5 billion over the next five years. Added 18 billion in market cap this morning alone. This crisis has taught us the rules don't matter in times of panic. one more time.

For the people in the back. What a phenomenal quote. Now before we move on I Want to clarify one important part? A lot of you might be thinking and correct me if I'm wrong in a comment below that it sounds like the taxpayers are once again bailing out a bank. Probably giving you some pretty negative flashbacks to the 2008-2009 financial crisis.

And while you're kind of right that these losses are being socialized, it's not exactly taxes. It's not the same same thing we had going on almost a decade and a half ago. But there are some interesting aspects. So let me just explain.

the FDIC is the Federal Deposit Insurance Corporation And according to their website, this is what they do. The mission of the FDIC is to maintain stability and public confidence in the nation's Financial system. And they achieve this by ensuring deposits, examining and supervising financial institutions for safety and soundness. and Consumer Protection work to make large and complex financial institutions resolvable and manage receiverships.

A lot of things which they literally were having to do over this past weekend. Now here's the part that I really want to get into. the FDIC receives No. Congressional Appropriations As in they don't receive tax dollars.

It is funded by premiums that Banks and saving associations pay for deposit insurance coverage. The FDIC insures trillions of dollars of deposits in U.S banks and thrifts deposits in virtually every bank and savings associations in the country. So what in the world does that mean? the taxpayers once again bail out another bank. Well, not really because it wasn't tax dollars.

That helped alleviate this situation. It was more so of the insurance premiums that a lot of banks pay. But remember these: Banks pay them from their profits and their profits come from their users, their clients. So no, tax dollars didn't really bail out the situation, but it was essentially bailed out by everyone who has a bank account in pretty much all of America.

As a quick recap: JP Morgan whose CEO is currently Jamie Diamond acquired 173 billion of First Republic Banks loans, 30 billion of Securities and 92 billion in deposits. It's that last number that's actually pretty scary because a couple months ago, they had over 200 billion dollars worth of deposits. Which shows you the size of this Bank Run And that number's even a little bit overstated because don't forget that it includes the 30 billion injection that came from 11. Banks A couple weeks ago, there was a massive, massive Bank Run JPMorgan and the FDIC agreed to share the burden of losses as well as any recoveries on the firm's single family and Commercial loans.

I Love this concept of sharing the burden of losses because remember, the FDIC gets their money from all the insurance payments that basically all these banks have to make. And they're able to pay those insurance premiums from us, the clients. So congratulations, we're all sharing in on the burden of losses. But don't you worry because the JP Morgan deal for First Republic hailed by Biden as a stabilizing move.

So I think we should all give ourselves a little bit of a round of applause. Congratulations, don't pat yourself on the back too hard. Did they get a good deal or not? Because we've also had people saying well, it's not going to be substantial to their bottom line, it's not going to be, you know, maybe slightly positive to the bottom line. Maybe I mean if you're still arguing about whether it's positive to the bottom line, it's hard to say that it was a sweetheart deal at the same time.

I I Think you're probably right that they got a deal that that Jamie Dimon doesn't think he's going to lose money on or hopes he's not going to lose money on, but those are a great deal. Oh, I would um and we'll get bigger so it this doesn't move the needle in in a major way. But look at what. JP Morgan acquired First Republic was one of the most envied Banks Why it had very rich depositors, it was able to make jumbo mortgages to um, very credit worthy clients and it had what was viewed as the best client experience, the best customer service all that is now acquired by Um JPMorgan at a cost that's only modeling more than what they would have lost in their deposits definition.

So for JPMorgan, that is a great deal and you see that in the stock price now. Will it make a huge difference to the bank? No, but at the margin it is undoubtedly and unambiguously beneficial to. JP Morgan Once again, the Rich: God Richer You want to know who really benefited from the situation? Congresswoman: Lois Frankel Man: I Love me some alleged political insider trading. So whenever something really crazy like this happens I Love to jump in and see what our politicians are doing because I think it's really cool to see how people who have no training in Wall Street whatsoever almost overnight develop an impeccable sense of timing.

And as you're about to see, Lois is no different. Here's her periodic transaction report. It's a filing that is legally required of our Congress people when they're doing any Trading And what I think is pretty interesting is how she got out of her First Republic Bank position on March 16th. Now, if you do some of the math, that means that she avoided almost a 90 additional downside decline from that moment until now.

So pretty good timing, but it doesn't stop there. It gets even more crazy because she ended up getting into JP Morgan on March 22nd and from that moment till now, it's up over 10. So she avoids a larger loss on FRC and then gets an extra gain on JPM Like I said political alleged I need to say alleged so I don't get sued Alleged Political Insider Training Their timing is just great. Now once again, this might have nothing to do with the FRC JPM situation at all, but I think we could all admit it looks pretty freaking sus so you're probably sitting there right now thinking to yourself, wow, this is all pretty crazy, but at least it seems it's being somewhat managed well.

Have no fear, things are actually even more crazy right now than you could possibly imagine on Wednesday of this week. I Hope you're watching this in time. If not, I'm talking about May 3rd, we get the results of the next Fomc meeting the Federal Open Market Committee meeting, which is where they decide what to do with the FED fund rate. Are we going to go up? Are we going to go down? Are we going to go flat and this has a massive impact? In fact, some of us could actually fairly argue that the giant rate increases recently is exactly what led to all the banking crisis and disasters that we're dealing with.

So for good reason. A lot of people are paying attention to this now as I'm filming this video for Wednesday May 3rd when we get the results at 2 pm, Eastern there is a 91 chance of a 25 Bips rate hike AKA 0.25 which would bring our cumulative total as of now up to five percent. Obviously, I will be filming the report being dropped and then the announcement that comes from the chairman of the FED Jerome Powell at 2 30 and in all reality, that will be the Super. Interesting thing because we're going to kind of be hearing from him of his commentary on the banking crisis and also we're going to be trying to glean any information of are we getting another rate hike or we finally just gonna go flat and just you know, take a little bit of time to really find ourselves one of those Classics it's not you, it's me type of scenarios.

This also seems like an appropriate time that I should call out. How on Friday of this week May 5th at 8 30 a.m an hour before the Market opens, we get the next unemployment report. Similar to Fomc decisions and inflation reports, the unemployment report is obviously very important to the overall economy, which means they can have a big impact on the market. So really, what I'm telling you is be prepared for volatility on both Wednesday and Friday of this week because we are getting a very very important update to really the health of our economy and what way things are trending with the overall uncertainty, the banking crisis, and probably that general feeling you have in your stomach that makes you feel it's not so good right now, there actually is an asset that's doing pretty well.

The OG crypto Bitcoin is on course for the longest streak of monthly gains since 2021. similar runs in the past decade per Sage What a word, a tripling in price and I must not be the only one feeling this way, because it was just reported today that Bitcoin has set a new record of daily transactions the same day the US government quietly engineered A Bank buyout. Obviously, this is referring to the craziness of First Republic The events are unconnected, but Crypto has a role to play in The Wider Political realignment, questioning the sanctity of central banks and established Powers now I Totally see what the author was going for here. He didn't want to say that if A then B but in reality there's not many steps in between the fact that we're in a banking crisis, banks are collapsing and people are looking around saying Hey where's is a better place to put my money because the current system doesn't seem to be the best which I would argue is clearly why we're seeing a little bit of an upward bullish rally in the world of Crypto.

I Also, don't think it's that ridiculous to say that people are finally looking around realizing that our current monetary policy is very questionable. and really even this concept of having central banks is very questionable. So I think people are looking almost for more of an algorithmic monetary system I.E Bitcoin rather than one that's run by fallible greedy human beings. Only time will tell if this is truly an appropriate hedge.

But I Have to admit, Bitcoin makes a very compelling case for the time being, at least in this media cycle. Bitcoin is actually being overshadowed by a new crypto. A new kid on the Block and this guy is a little green and kind of looks like a frog. Pepe Coin enters Market's top 100 cryptocurrencies.

I Can't believe I'm saying this. Soaring 111 overnight, the newly launched Meme Coin Pepe has taken Crypto by storm after hitting a market capitalization of 540 million dollars. Well boys, it looks like meme season is back on. So what in the world is Pepe coin? Basically, it's another hilarious Internet troll.

As you can see right here, the max Supply is 420.69 trillion. And for those of you who want a little bit more info on it, Pepe is a deflationary meme coin launched on Ethereum. The cryptocurrency was created as a tribute to Pepe the Frog Internet meme, which gained popularity about two decades ago. The project aims to capitalize on the popularity of meme coins like Shiba Inu and Dogecoin and strives to establish itself as one of the top meme based cryptocurrencies now.

Honestly, I don't know if it'll achieve that, but it's come out of the gate pretty strong. Even though it might be a joke for some degens, it's producing some very serious returns. One investor managed to turn 250 in Pepe to 1.02 million in just a few days. They bought the token on April 15th, swapping 0.125 Ethereum for 5.9 trillion Pepe tokens.

The BET then ballooned into millions of dollars as Pepe popped an ungodly amount in just four days. The wallet continues to hold 3.9 trillion coins worth just over 5.3 million dollars. Can you imagine that? Can you imagine becoming financially free financially making it by getting in on a meme coin? That irony is just absolutely beautiful. As I'm filming this, Pepe is up over 500 percent in the past 12 trading days, which is obviously just ungodly.

And what I want to say for you is hey, if you're in it, understand what it is, pay attention to what happened to Doge pay attention to what happened to Shiba Inu Yes, you could make a lot of money, but this isn't thought to be some amazing, phenomenal investment. It is possible to get rung so all I'm gonna say is if you're getting involved, have your fun. I Hope you make a ton. a ton of a ton of money, but you should probably employ some sort of basic risk management system and don't put more money into the BET then you're willing to lose once again.

Yes, clearly you can make a ton of money, but you could also lose a lot of money. So I just ask you to be a little bit. Careful By the time the closing bell went, dingety ding ding ding today, not really much happened. We went up a little bit and we just came back down and we basically closed slightly.

In the rep. Moving forward for the remainder of the week, I will be paying attention to the support region between 413 and 4 14. I'll be looking for an upside Target of 4 18, 25 and then also be looking for what's going on on the mid-august Upside: Gap Bill at 4 21 22, those are going to be the major targets I'm going to be paying attention to and I'll also be looking at what's going on in the world of earnings on the screen. Now you can see all the major earnings for the remainder of this week before the market after the market.

feel free to screenshot it. Or you could just go to at Whispers on Twitter for tomorrow before the Market opens. I'll personally be paying attention to Uber Pfizer BP and marathon and then after the market closes, I'll be looking at AMD and Ford But with that being said, the major report of the week comes after the market closes on Thursday which is obviously Apple very quickly. For those of you who are short-term Traders I want you to know that tomorrow Tuesday May 2nd has a little bit of a bearish bias, but not an overwhelming one.

I tested this day as in buying it, open, selling it close. Over the past 25 years, the Bulls have won 44 of the time, so a little bit less good than flipping a coin and the profit Factor has been 0.9 Which means for every dollar spent only 90 cents has come back, which is why it slightly favors the Bears Thanks for hanging out with me I Hope you enjoyed the video and if not, maybe I'll make a better one tomorrow. But anyway, don't forget to subscribe I'll catch you later Peace out.