Welcome back to the Matt core show where I'm Matt and I Guess that means this is the show we got a fun one in store for you today. There's so much going on in the world of stocks, politics, and honestly everything in between. Now the big headline of the day is we got an inflation report an hour before the market opened and it caused the old stock market to rip to the High Heavens. So of course we'll be giving you a quick recap of that, but that's not the only thing that happened today.

We also had the first congressional meeting with the new FTX team and it's safe to say that there were a fair amount of Bombshells among which was the fact that SBF is now arrested and being charged by the SEC. So we have some crazy stuff going on there with that crypto collapse, but the Fun's not just going to stop today. Obviously, it's going to continue into tomorrow when the money printer go Burr type of dude, you know Jerome Powell he's going to be giving us the results. He'll be doing a public Conference Of course we'll be streaming it, but we're going to find out what the Federal Reserve is doing with interest rates and this will have a gigantic impact on the economy and also the stock market.

So you're going to want to pay attention to that because yes, the fireworks are clearly continuing into tomorrow. But from there we also have some other side stories I think you're really going to enjoy, such as the fact that Tick Tock might be banned in the US and also billionaire Ken Griffin is now suing the IRS. Now obviously if you enjoy this type of content, it would be awesome if you could help me out by hitting the like button. And don't forget to become a goonie by hitting that subscribe button.

And now that we got that out of the way, let's rock foreign Day To all of you who celebrate stocks close higher on cooler inflation report not second day of gains. Now by the time the bell went dingety ding ding ding at close, maybe not as exciting, but this morning it was all bullish rush. But even though things didn't really continue as nicely as we all wanted them to, it was still pretty good day. Take a look at the heat map here: the S P 500.

Of course there's a little bit of red, but there's also quite a bit of green. And the same could be said for Crypto holding on very, very nicely. Bitcoin green is green. The overall crypto sector and stock market green on the day.

A big win for the Bulls. So let's take a second to get into the nitty-gritty of what actually happened today. For those of you who got up at the crack of dawn with me, you know, at least an hour before the market opened and paid attention to the CPI report. drop 8 30 am ET You know that the market ripped.

In fact, the Spy went from 399 all the way up to 414.. now obviously on the day, the market was still green to almost one percent. But really, we didn't hold that monstrous gain that we had right when the report dropped. That brings up the fair question: why was there such a pop in the market? Well, the CPI report the Consumer Price Index which is basically just as a consumer how much more or less expensive or average everyday things getting for you? Well, the headline: all items came in at 7.1 percent and the expectation was 7.3.

So basically there was a Line in the Sand and we came in a little bit cooler. And as I explained in the video from yesterday that if we do that, there's a good chance that the market pops and that's exactly what we saw. Now that's the headline. came in a little bit cooler, less than expected.

There are other things I want to bring up to you: Energy year over year is still up 13.1 percent. Food year over year of 10.6 I'm in no way trying to explain to you guys because I couldn't that somehow everything's magically good. Inflation is still very, very serious. I'm just saying from June until now, at least we're trending in the right direction.

Outside of food and energy, we were up six percent. The expectation was 6.1, so even there came in a little bit less than expected. All items not counting food and Energy. came in at six.

We were expecting six one and all items in general came in at 7.1 When we were expecting 7.3 I'm going to take a quick moment to point out an interesting technical development I Saw in the S P 500 today. Obviously when the market opened, we had a massive Gap up. We were talking 410.50 big percentage gains. All of the Bulls had a massive massive smile on their face.

and if you know me at all, you know I'm a big fan of Gap plays and you might be thinking wow, this was very, very close. but if you look at it, that's all it was. We were a couple cents away from a true Gap though the low of the day was 399.07 the high of yesterday was 398.95 which means we were off by about 12 cents. Which means this Capital down to 398.95 is still very much in play.

Just a quick side note that I want to share with all of my day-to-day day trading degenerate Traders Thought I should throw that out there to you. In terms of other incredibly important macroeconomic reports, announcements, decisions, you better have your calendar marked for tomorrow Wednesday December 14th because we get the results of the Federal Open Market Committee meeting also known as the Fomc meeting. Now I Know I can already feel your eyes glossing over and you're like dude I Don't need a refresher of Econ class, But let me explain this to you. It is so incredibly important because these decisions are what impacts are.

Mortgage trades are, credit card interest payments, our student loan payments. It's a massive impact on the economy and the stock market. When the Federal Reserve is being super supportive, quantitative easing things are ripping to the High Heavens But right now there are more so fighting inflation which has the side effect of creating some market and economic headwinds. And that's exactly why the market has been selling off.

So you have to understand: Is it a little boring? Yes, but it is massively massively important on everything from stocks to the economy. So here's the skinny on the entire situation. These Fomc meetings are two days. It starts on Tuesday ends on Wednesday Which means we'll get the results at 2 pm ET on Wednesday the 14th I'll be streaming the whole thing and then the chairman of the Federal Reserve Jerome Powell will be doing a press conference at 2 30 and obviously I'll be streaming that as well.

But here's what you need to know what to look for. Basically, there's a bunch of Stuffy people sitting around in their suits deciding what to do with Fed Fund Rate. Now, this Fed Fund rate is kind of what sets the precedent for mortgage rates, credit card, interest payments, student loan payments, all that good jazz. And that's why it's incredibly important.

Obviously the higher the rate goes, which is also known as being hawkish, puts more downward pressure on the economy and thus the stock market. But they do this to fight inflation. To fight inflation, you're trying to lessen demand, but if you do it too much, it could be kind of catastrophic on the old economy and also the stock market. Now, out of the past six Fomc meetings, if you go all the way back to the first one, it was 25 Bips, then 50 bips, and then the most recent four have been 75 bips as in 0.75 percent.

So out of the past six meetings, they've all been interest rate hikes, and this one will still probably be a hike. As you can see on the screen right now, the odds are telling us that there's an 80 chance at least as I'm filming this, that the next rate hike will be 50 bips. So at least it's not another 75. But we're still getting another interest rate hike because the inflation came out and it came in at 7-1 which was better than expected.

Don't get me wrong, but that's still about three and a half X where we should be. We should be around two percent. So obviously the Federal Reserve in particularly this Fomc meaning they have their work cut out for them. So right now pretty much the entire Market is assuming and accepting that it's going to be a 50 Bips A point five percent increase the federal fund rate.

So if we already know that, what's the point in paying attention to it, that is an absolutely phenomenal question. And the answer to it is yeah, we know it's most likely going to be 50 bips, but what we don't know is what's coming next. And that's exactly why all these Financial reporters Financial streamers out there are hanging on to every single word that Jerome Powell will be saying at the 2 30 press conference. Basically, everyone's trying to glean a little information of when it it comes to 2023.

January February What's the Federal Reserve going to be thinking? Are they still going to be hawkish, fighting inflation, pushing the economy in the market down? Or are they going to finally say hey, you know what? We've done enough. Let's see how everything shakes out and maybe it's time to be a little bit more dovish. This might sound crazy we're talking about different types of birds and interest rates, but please believe me, this will have a mega impact on both the economy and the stock market. so we got to be paying attention to the entire thing.

The main thing that I'll be looking for is basically the vibe of Jerome Pal: Is this Vibe hawkish or is it dovish? Is he going to be continuing with very aggressive quantitative tightening? Is he going to be very aggressive with the terminal rate? Is he going to be super aggressive with wherever we get to that terminal rate which is the top fed fund rate because remember, they all add up. Is he going to keep us there for a long time? Or does he think think that maybe we've done enough? Maybe there's time for a little bit of a breather and he's going to talk about lessening the quantitative tightening? Maybe not necessarily a pivot I Don't think that will come till the end of 2023 at the absolute earliest, but maybe he's going to get us to a comfortable rate and let us Coast all year there. That's exactly the type of thing that I'll personally be looking for. Once again, hawkish at this point in time is essentially equivalent to being bearish, and being dovish.

a little less restrictive is essentially equivalent to being bullish. Since we got all the economic stuff out of the way, let's get into this spicy content. Let's get into the drama. It's been an absolutely insane Bonkers Unreal 24 hours for FTX But specifically, Sam Bakeman Freed and if you missed it last night, he was arrested and following that, we just have bombshell after bombshell after bombshell.

But before we get to that, let's just rewind a little bit. FTX is Sam Bakeman Freed is arrested in the Bahamas A statement by the government of the Bahamas said Mr Bateman Freed was arrested after prosecutors in the U.S filed criminal charges. The sealed indictment was either unsealed or leaked to the public earlier today. I'm not really sure what happened, but the charges against Sam Makeman Freed are very serious.

conspiracy to commit wire fraud, wire fraud Commodities Fraud. The list goes on and on. In fact Sam Bakeman Freed was hit with eight criminal charges including fraud and conspiracy for allegedly misappropriating FTX customer funds Boil Boy, the party did not stop there. The SEC hit SBF with a lot of civil actions.

I Would highly recommend that all of you take the time to read over this case document. I'll make sure it's linked below. but I Want to bring your attention to section 31. from the Inception of FTX Bateman free diverted FTX customer funds to Alameda and he continued to do so until Ftx's collapsed in November 2022.

At first, this might not seem like much. You might be even wondering why am I bringing this up to you And it's because of the start of this section. from the Inception of FTX as in from the moment it was created. Another way you could interpret this because we know from various public meeting calendars, the chairman of the SEC Gary Gensler on multiple occasions has met with the disgraced Sam Bateman Freed.

How did he not recognize what was going on? The SEC itself is saying this happened from inception. From the start, it wasn't something new that they just decided to do. This has been a fraudulent company I Probably shouldn't say that because I'm not a lawyer. This is seemingly a fraudulent company from the get-go How did the chairman of the SEC Gary Gensler who once again met with not only Sam Bingman Freed, but really people who represented this company multiple times times? How did he not see that it was fraudulent? I Honestly think this alone means that Gary Gensler has some serious serious questions to answer now.

I'm obviously well aware that there's many questions that we all want answered, especially related to this collapse, this absolutely horrific collapse. Fortunately, there's a little bit of progress. today. There was a congressional meeting between the house Financial committee and the current CEO of FTX John J Ray III the guy who's basically trying to clean up the mess and I do believe eventually given enough time, he'll be able to explain to us really how things went down.

But in today's first meeting, he still gave us some interesting insights to say the least. For example, as many people have been saying for a while, this wasn't that specific to the world of crypto. this was old-fashioned fraud. Listen to Mr Ray himself Mr Ray you a unique perspective on the fact that you have worked on the Enron bankruptcy I'd be interested real quick of you talk a little bit real quick about how it Compares you got cut off in nearly time and I'd like to hear a little bit about that.

you know Enron was a you know as a really a different company. uh, you know, was a The crimes that were committed. There were a highly uh orchestrated uh Financial machinations uh, by highly sophisticated people. uh to keep you know transactions off balance sheets.

Uh, you know the this is really old-fashioned embezzlement. This is just taking money from customers and using it for your own purpose. Not sophisticated at all. sophisticated.

Perhaps in the way. uh, they were able to sort of hide it from people uh, uh, frankly, right in front of their eyes. But this isn't. this isn't uh uh, you know, sophisticated whatsoever.

This is just plain old embezzlement. Old school, old school. There you go. That's right.

This is an example of good old-fashioned embezzlement. But honestly, I wouldn't just stop there. There were some other pretty crazy things that came out like this: Another bankruptcy filing revealed that Mr Bankman Freed personally received one billion dollar a one billion dollar loan from Alameda research in a meeting with committee stat. Mr Bankman Freed was unaware of the terms of the repayment interest details and could not confidently State who authorized the loan.

He claimed that he reinvested this money into the exchange, but knowingly chose to have the loan issued to him rather than FTX to avoid directly connecting Alameda Research to FTX Can you elaborate on any significant findings in connection with this loan? The the loans that were given to Mr Bank and Freed were not just one loan? it was numerous loans, some of which were documented by individual promissory notes. There's no description of uh, what the purpose of the loan was. in one sentence instance, he signed both as the issuer of the loan as well as the recipient of the loan. Uh, but we have no information at this time as to what the purpose or the use of those funds were, and that is part of our investigation.

How absolutely ludicrous is that? Sam Bakeman Freed was both the signer and the signee on loans, so he's basically like, hey, I wonder if I could get a loan oh, I'll make sure I'll give myself a loan Now You might think that was the craziest thing that came out of the meeting, but no, there was one more that I think you'll really enjoy. Mr Ray You have compared FTX as worse than Enron. Can you please elaborate on some of the specific ways: FTX is worse than one of the largest corporate frauds in history. The the FDX group is unusual in the sense that you know I've done probably a dozen large, you know, scale bankruptcies over my career, including Enron of course.

Uh, every one of those entities had some financial problem or another. They have some characteristics that are in common. Uh, this one is unusual. and it's unusual in the sense that literally you know there's no record-keeping whatsoever.

It's in the absence of record keeping employees would communicate. You know, invoicing and expenses on on slack. which is, you know, essentially a uh, you know, a way of communicating for chat rooms. Uh, they use QuickBooks multi-billion dollar company using QuickBooks QuickBooks QuickBooks Uh, nothing against QuickBooks Very nice tool, just not for a multi-billion dollar company.

Uh, there's no independent board, right? We we had one person really controlling this. uh, no independent board. That's highly unusual on a size company this is. and it's made all more complex because we're not dealing with, you know, Widgets or you know or something that's tangible.

We're dealing with with crypto and and the Techno technological issues are made worse when you're dealing with an asset such as crypto a multi-billion dollar company was using QuickBooks What's going on in this world? The overall FTX situation is nothing less of a horrific disaster that has been dragging other companies down with it and that's wanted to take a quick second for me to share my opinion on ticker symbol Si the company known as Silvergate Capital. It's not looking good in fact I feel and I'm stating this with no position whatsoever. I'm not long I'm not sure I don't have calls I don't have puts I think Silvergate is going to get drugged to the depths of hell because of their connection to FTX As I'm filming this, even the market had a pretty good day. Silvergate is down 12 and it's just been falling.

and falling. and falling As you can see on this screen, it's trading just below 19. Not long ago, it was above 100 and I Think this thing is going to capitulate? capitulate, capitulate because it just has such dirty ties to companies such as FDA x A lot of people are trying to throw out the opinion that there might be some money laundering involved with this company and if that's ever proven in a court of law, this company this ticker symbol will quickly become non-existent. So I just want everyone to be a little bit careful.

especially if you have any investment in this. make sure you're double checking, triple checking your research. Speaking of things that might become non-existent the next story I have for you might be upsetting. or at least it'll be upsetting if you're like me spending hours a day.

Doom Scrolling on social media to better handle this thing we call Life What am I talking about? I'm talking about the fact that the US government is now officially trying to ban Tick Tock Just today it was announced: U.S Lawmakers unveil bipartisan bid to ban China's Tick Tock Now before we get into it, I Have to kind of point out the humor involved of this is what brings the two sides of the aisle together. Banning Tick Tock Republican Senator Marco Rubio On Tuesday announced bipartisan legislation to ban China's popular social media app Tick Tock For those of you wondering hey, what gives government I Just like wasting some time, why are you so worried about Tick Tock and what I do with my time on Tick Tock Well, it all boils down to National Security The U.S fears the app could be used to spy on Americans and censor content. The legislation would block all transactions from any social media company in or under the influence of China and Russia Now I'm fully aware this might feel like it's a little bit of fear-mongering and potentially coming out of left field, but in reality this has been a little bit of a Hot Topic in government for quite a while now. The bill comes as scrutiny of Tick Tock has grown in Washington in recent weeks at a hearing last month.

FBI Director: Chris Ray said Tick Tock's U.S Operations raise National Security concerns flagging the risk that the Chinese government could harness it to influence users or control their devices in real reality, when you leave it to politicians to do their politicking, it typically takes quite a while, but some individual states have already decided to move forward with some form of the ban. Alabama and Utah on Monday joined other U.S states prohibiting Tick Tock on state government devices and computer networks due to National Security concerns. The governor of Alabama explained their reasoning by saying disturbingly Tick-Tock harvests vast amounts of data, much of which has no legitimate connection to the app's supposed purpose of video sharing. use of tick tock involving State I.T Infrastructure thus creates an unacceptable vulnerability to Chinese infiltration operations.

Now I Know at first this might seem a little extreme I Mean after all, it does sound crazy that the government is getting involved in what social media were allowed to use or not allowed to use. but on the other side, I do understand the government's vantage point. If this truly is a national security threat, well, we probably shouldn't have access to it. Obviously I would love to get your thoughts on this, especially if you're a tick tock.

Creator But I do want to leave you with one's thought whether this goes through or doesn't go through. I Think it really opens up the door for other competitors such as YouTube shorts or maybe even Vine if Elon Musk and Twitter chooses to re-release it to the public. In all honesty, if we get Vine again, what a blast from the past that will be Now to wrap everything up today: I Wanted to share a little bit of a Oh Brother kind of a story, but this particular story, you can also have to have the world's smallest violin. So the billionaire founder of Citadel and Citadel Securities Ken Griffin is suing the IRS.

You might be wondering: what did the IRS do to ruffle the feathers of Mr Griffin Well, he's suing them over a leak exposing taxes paid by 25 of the richest Americans More specifically for alleged negligence in maintaining safeguards for confidential tax returns citing a trove of IRS data in series of Articles detailing the incomes and taxes paid by some of the world's richest people now I Know I Know like I said, the world's smallest violin I'm well aware that not many of us have a soft spot in our heart for the world's Rich the world's Elite We probably don't get really cared too much of their daily problems, but I think it's also fair to say that about the IRS I don't care about Griffin or the IRS but just to fully cover the story, here's a little bit more detail: Griffin Alleged that the IRS has willfully and intentionally failed to establish adequate safeguards to protect confidential tax return information. Now on that note: I Don't really care if it happens if you're rich or not, but I do think that our tax records should at least be protected Griffin Claimed IRS Employees deliberately stole the confidential tax returns of several hundred successful American Business Leaders and called it unacceptable that government officials have failed to thoroughly investigate the source of the leak now. I'm going to go out on a limb here and state the obvious, but I'm no lawyer. With that being said, if an IRS employee truly did steal information and release that to the public, that seems super illegal.

Griffin Who is asking for trial by jury averaged an annual income of nearly 1.7 billion dollars. That's billion with a B from 2013 to 2018. And if you ask me, I think that's exactly where things will go against them. He's looking for a trial by jury and he's going to really look these people in the face and be like hey, I make almost 2 billion a year.

You should feel bad for me now I'm by no means an expert on human psychology or anything, but something's telling me that the jury's not going to really resonate with that. And on that note, that's all I have for you today I Truly hope that you enjoyed the video and I appreciate that you even spent a second of your day with me. Thank you I hope you have a Bea youthful day.