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 they are just waiting for the next Bank runs and then those big banks are going to be gobbling up a whole bunch of the small Banks and all of the cost of that any losses are going to be passed on to you any profits are going to people like Jamie Diamond at goldsilver.com we have a price match guarantee free shipping and global storage options learn more about how to invest in Precious Metals at goldsilver.com so in the news right now First Republic Bank is taken over by FDIC as sold to JP Morgan in third major

bank failure of the year and I hate to break it to this is NBC News uh actually it is the fifth bank failure of the year we have had uh Silicon Valley silvergate signature and there was Credit Suisse one of the world's largest banks this is international this new financial crisis that we are in but there is this fairly good article uh on Zero Hedge uh about uh JP Morgan taking over the the First Republic Bank and um I one of the things that always bothers me about these uh articles though is a lot of times on on uh Zero

Hedge they will use acronyms and sort of Insider terminology you have to look up to understand what they're saying so anyway uh jpmorgan's CEO Jamie dimon uh said that the system is very very sound the banking system is very very sound well you know if you take a look at the way the 2008 Global financial crisis unfolded uh there was a bank failure and then there was six months and then there was an another one in five months and there was another one and then one month and then it started happening every week

and then there was a period where there were a couple of days in a row where there were major major events happening uh and so I think you know my feeling is that uh this is just ramping up right now so uh you know he also say it said uh first of all JP Morgan I didn't know it but they hold over 10 percent of America's deposits uh when they call it too big to fail this is uh dangerous and the problem is just getting worse as I will show you in a moment uh we need large successful banks in the largest

economies is what in the economy is what Jamie Diamond said uh and he continued uh proclaiming that this is nothing like 08 or 09 no it isn't it's it's very very different and the problems are going to come from different places you know in in um 08 uh I had been uh warning about what was going to happen since 2004. there's a video on it of me speaking at the Silver Summit and um I was showing uh the exposure to real estate uh I was showing how overvalued it was that this was a bubble that was

going to that was going to pop uh and it was for anybody that was really looking and the FED wasn't looking even when the when every you know Greenspan denied that it was happening and it was actually his fault that it happened by taking rates down so low when rates are low real estate does really well now rates are high and you'll see the impact of that in a moment well he's right and so much that this is far larger and I believe that it is and we really don't know where the cre holes are yet this is one thing I

don't like about uh these articles that are written by one of the authors at Zero Hedge he keeps on using acronyms and Insider terminology where if you are somebody in the banking sector you're going to understand this I had to look this up and uh this is this cre is commercial real estate so commercial real estate so let's just take a look at a little thing here posted by Wall Street silver this is a San Francisco office tower I looked this up the tower on Google Maps and it was for sale for

uh 300 million uh it's mostly empty and they're expecting that it might sell for 80 percent less which is 60 million now a markdown like that on a project that is already financed means that the loan is worth less uh the the loans that exist and so getting back to the article finally the two biggest to fail Bank CEO warned we are clearly going to see some reduction in Bank lending in playing uh JP Morgan will be doing God's work for the fed by Contracting credit without the need for rate hikes so uh

if we take a look at what's already happening home prices growth in the slowest in a decade in San Francisco crashes so we're about to go and you know I show in my book that when uh real estate peaked uh it was about 220 percent overvalued uh when when inflation adjusted so compared to the rest of the economy uh real estate has to go down by more than half what happens to all of these uh bank loans that are on the balance sheet when uh things go down like that now just to uh really show you

how you end up paying the bill for this the agency estimated this Insurance Fund this is the FDIC the Federal Deposit Insurance Corporation estimated this Insurance Fund would take a hit of 13 billion in the deal and JP Morgan also said it would receive 50 billion in financing from the FDIC where does the FDIC get the currency for this well every bank has to pay FDIC insurance and so this raises the cost of banking which means you are going to be paying more for all of your banking services and so

uh the FDIC and JB JPMorgan also entered into a loss share agreement on single-family and residential and Commercial loans it purchased from the former First Republic Bank so that U.S home price price slowest growth these losses are going to get worse not better this isn't the just the slowest it's going to be everything will be crashing simply because of the bubbles that the Federal Reserve pushed it into by holding interest rates down so low Banks created so much more credit with with

all of the loans uh and now all of this is unraveling now Jerome Powell uh was pranked by Russian callers pretending to be zelinski and on the call he admitted that the U.S recession is likely and so when that goes into a recession what is going to happen well um Diamond's closing comments were most prophetic stating that they support Community Banks so uh JPMorgan supports Community Banks and that the banks will consolidate of course they will once the banks are pushed into FDIC hands and assets

scooped up by JP Morgan with government backstops translation we will wait for the bank run thanks uh to the FED uh rate hikes to them all then buy them up for a small for for cents on the dollar with the FDIC keeping the toxic crap and that is exactly what is going to happen and what has happened with each with the Savings and Loan crisis of the 90s uh there was a huge bet these are bank consolidations I like the colors on this chart best but this chart you can actually read all of the different corporations but you can see

all of these different banks that have been Consolidated into just four Banks uh Travelers group and uh citicorp uh were are now a Citigroup Washington Mutual um uh JPMorgan Chase Manhattan bear Stearns and now you can add First Republic to this uh blue chart here are now JPMorgan Chase uh there's uh Bank of America I started with Security Pacific Bank when I first opened a bank account and it just merged into Bank of America I still have my Bank of America account but take a look at the number of banks small

banks that these all gobble up and we are about to go through uh another one of these uh huge consolidation phases uh then if you take the percentage change in the number of U.S banks the smaller banks are down and this is uh 2014 15 16. this is like as of 2017 I guess um there's a 28 fewer small Banks but 33 percent more large Banks uh going back through history here the number since the Federal Reserve this is like the federal reserve's job is to help the biggest banks uh gobble up all of the

small Banks the number of banks in the United States and the Federal Reserve keeps on discontinuing they don't want people to be able to follow this data historically you have to download data have somebody put it into a spreadsheet uh correct it for any mismatch errors and then try to make a long-term chart out of it but it looks like there's information missing here that's just a problem in the way that this tries to generate charts but there used to be more than there were thirty thousand I'm

rounding thirty thousand five hundred thirty thousand four hundred uh banks in the United States back in 1921. this starts um uh when basically when the Federal Reserve starts and then uh through the 20s there was more and more consolidation of Banks and this is during the Roaring Twenties then after the crash of 29 this grade area here is the Great Depression 14 500 Banks fourteen thousand eight hundred by uh 1941 so the beginning of World War II now this is the total number of banks the total number of non-member banks so

these are meaning not members of the Federal Reserve System uh so before you went from thirty thousand uh the total number uh thirty thousand to fourteen thousand eight hundred but it was mostly the non-member banks that took the hit here you go from twenty thousand which means there was it was ten thousand member banks 20 000 non-member Banks down to seven thousand so it was really all of the non-member banks being gobbled up by the Federal Reserve System uh then we can continue this chart picking up in 1980 for in

1984. you can see there are fourteen thousand four hundred Banks today there are four thousand three hundred and seventy five actually that is the third quarter of 2020. so there's been more consolidation since then so the Federal Reserve System is this uh you know I did a video about The Blob and I think that was government growth there was this old movie uh uh Steve McQueen from the 50s and the blob was this thing that came from outer space and do it just uh absorb any life form and then grow and it kept on

getting bigger and bigger and it was just eating everything well that's what the Federal Reserve System has created here and so uh to refer back to the main article that we started with the the Zero Hedge article uh they they are just waiting for the next Bank runs and then those big banks are going to be gobbling up a whole bunch of the small Banks and all of the cost of that any losses are going to be passed on to you any profits are going to people like Jamie Diamond I want to thank you for watching we'll see

you next time