 What's up everyone? I'm back here for another video. So if you've noticed, I have my Discipline Workshop Graduate shirt on. So for everyone participating in the Discipline Workshop, we have a new process to give you guys a graduation t-shirt. So please DM Steven R.H.1 moderator or James Freelander or Harry Haas to find out how you can get a Discipline Workshop Graduate shirt. I think the way that we're setting it up is if you stick to your plans for I think one to two months straight, doesn't matter if you won or lost, but if you stick to your plans for one to two months straight and you posted the Discipline Workshop, you will get a special Discipline Workshop Graduate t-shirt. So that's number one. Number two is I'm back in Jersey, right? So I've been in Miami for about a month. What I like to do is I like to go to Florida for a month, come back here for a month, go to Florida for a month, come back here for a month. So back home in New Jersey, it's cold but you know it has pros and cons here. So I kind of want to get into the main topic of the video which is the Federal Reserve, Credit Suisse, the markets, everything is going crazy. So we're currently in a banking crisis right now and what that means is previous to well in 2008 the banking crisis was based on bad investments that the banks were making. So you know they were not doing their due diligence on lending money to customers but this banking crisis is very different. This banking crisis is based on customer withdrawals. So the way that a bank makes money is they take the money that you deposit in and they invest it in mortgages, they invest in treasuries, they invest in whatever and let's say they pay you 0.05% interest, whatever they make over that in interest, that's their profits, that's their everything and they're making two, three, five, six, 10% on your money right? So what's been happening is similarly to what happened at FTX when customers were withdrawing money, withdrawing money, withdrawing money and the bank didn't have it, well in this case the banks invested into treasuries from a couple of years ago. So with the inflation going crazy, with the market going crazy, the Federal Reserve has raised interest rates which has made treasury bonds more valuable. So these banks a year ago bought treasury bonds for a 1% return for every 10 years, now they're paying 5% return right? So the reality is the market for those old bonds are trash, they're garbage. So when an influx of customer withdrawals came in, the banks had to sell those investments for a loss and that caused a snowball effect, a domino effect of more people trying to withdraw, withdraw, withdraw and what they ended up doing is they withdrew from the small regional banks and they put into the large banks like the Bank of America, the JP Morgan because they seemed safer. So the Federal Reserve came out and pretty much said that they're going to kind of insure every single deposit at these banks. So the reality is that FDIC doesn't really matter anymore, there's a FDIC limit of 250,000, that doesn't really matter anymore, it's pretty much unlimited insurance for bank deposits. That means that if I had a million dollars in this bank, the FDIC would cover 250,000 and the remaining 750,000 would be covered by the Federal Reserve which is kind of crazy right? So to stop all these mass withdrawals happening because the way it works is this is called a run on the banks okay? That happens when all the customers are trying to withdraw their funds at the same time. The banks have regulations, I think 25% of all deposits there have to be in cash right? So if they have a billion dollars in deposits, they have to have 250,000,000 in cash to be able to deal with withdrawals, mass withdrawals. The problem is that if over 25% of people want to withdraw their money on the same day, the bank doesn't have it. The bank's money is stuck in investments and a bunch of other things so they have to sell it for a loss and that creates a domino spiral cascade effect. It first started with Silicon Valley Bank and then started with Signature Bank. Now Credit Suisse, now XYZ, all these banks are kind of going under right? So want to kind of talk about what happened with the Federal Reserve, what happened with Credit Suisse now that you guys understand pretty much as they run on the bank okay? And the best way to prevent a run on the bank is for the Federal Reserve to say don't worry, we're going to back everything up, everything's going to be fine, don't worry about it, don't worry about it. If you remember this sounds a lot like COVID when the Federal Reserve came out and said don't worry, we're going to make sure that everyone gets a stimulus check, we're going to make sure everyone's money is there, we're going to make sure everything's right. So what happened over the weekend is the Federal Reserve's balance sheet, that means that the assets that they hold grew by 300 billion dollars okay? So this is a very complex thing, there's so it's going to take me a second to explain it. So there's something called quantitative easing okay? And quantitative easing is a measure that the Federal Reserve uses in extreme panic scenarios. Quantitative easing means that the Federal Reserve is pretty much printing money and injecting it into the system. When they print money and inject it to the system it creates price stability, it creates a floor for prices but it increases inflation. Quantitative tightening is when the Federal Reserve takes that money that they injected into the system and they pretty much just wipe it out right? They sell their assets instead of buying assets, they wipe out the money out of the system right? So when COVID happened they started quantitative easing, they printed six trillion dollars to inject into the markets and that led everything to kind of go up, it also caused inflation to go up. But last year during November of last year the Federal Reserve said not only are we going to raise interest rates, we're going to do quantitative tightening. So all that money that we injected into the system we're slowly month by month going to take out I think it was like 100 billion dollars worth of cash every single month they're going to sell it, they're going to get rid of it right? So quantitative easing is pretty much printing money, quantitative tightening is pretty much reducing the money supply right? So what ended up happening is when the Fed said that they're going to reduce the money supply by quite the quantitative tightening okay? That created all these banks to go under, it created all these crazy things blah blah blah. Now what's been happening is in the last weekend alone the Federal Reserve's balance sheet has gone up by 300 billion dollars. So that means almost a third of the quantitative tightening that they did okay? A third of the quantitative tightening that they did has now reversed. So it's almost like a secret quantitative easing hidden in a bank crisis okay? Does that make sense? So pretty much, it seems like the Federal Reserve is back to injecting money into the system, hiding it behind a banking crisis to make it seem like oh we're not printing money, we're not doing anything, this is not a bailout, this is not nothing. But secretly if you read between the lines kind of is a bailout and kind of is printing money right? So that's kind of where we're at now and that's why you see the markets rebounding the way that they do. Yes, there is a banking crisis, yes that is negative but if you read between the lines pretty much the Fed just printed 300 billion dollars like that, like that okay? And when the Federal Reserve prints money stocks go up, yes inflation comes up as well when you print money. So this Wednesday is a very important day because this Wednesday is the Federal Reserve rate hike decision. Before all this banking crisis happened it was priced in that the Federal Reserve would raise by 50 basis points okay? So half a percent they would raise and then this banking crisis happened and now it's changed so they're going to raise by 25 basis points right? So they're cutting it in half the rate hike that they're going to do but now speculation is coming in that instead of a hike they might do zero okay? They might not even raise interest rates this quarter right? And the biggest Hail Mary lob of them all is rumor is that the Federal Reserve might even cut interest rates okay? So now yes inflation is a big problem but I don't know about you guys the bigger problem is the banking crisis okay? So now we have two problems right? We have inflation going crazy and we have the banking crisis going crazy so if the Federal Reserve raises interest rates more banks are going to go under. If the Federal Reserve lowers interest rates inflation is going to go higher so we're in a very very delicate situation that's going to be resolved on Wednesday. If the Federal Reserve raises interest rates the market is probably going to crash. If the Federal Reserve drops interest rates the market is probably going to go up because the cost of borrowing money will get less with lower interest rates which will lead to higher profits for companies okay? So this that makes sense. I know it's very complicated quantitative tightening quantitative easing printing money rate hike decisions these are very complex things but you need to understand these to understand how the market is moving okay? Now let's talk about Credit Suisse. Credit Suisse is a very big bank very very big very important everyone knows about it. What happened over the weekend is the government pretty much forced UBS another bank to buy Credit Suisse for 75% off the market value. So Credit Suisse was about a I think around a six to eight billion dollar company and now they got bought out for two billion dollars. So that's to kind of contain all the systematic risk out there. So UBS just bought Credit Suisse right? So that bank is saved. That bank is saved which is leading to the markets rebounding even more. So not only has there been an injection of money into the system via the Federal Reserve not only has there been speculation that interest rates are going to go down this banking crisis that's happened the FDIC is ensuring the money the Federal Reserve is going to ensure the rest it's pretty much solved in a week which is pretty crazy right? Pretty crazy. So in my opinion all this banking stuff also is way above my pay grade okay? Even the billionaires can't figure out how to trade these banks. So how am I some herb from New Jersey going to understand how to trade these banks the biggest thing that you could do when there's a banking crisis when there's a Bitcoin crisis when there's any type of crisis is to understand that if the richest people in the world can't figure it out then you can't figure it out right? So for me as a small cap trader for me that focuses on these junk companies I mean it's been a little bit slow for me you know the markets the money in the market has gone to these bank stocks the money in the market has gone to these speculations speculative assets like Bitcoin and gold and we even made a video last week is Bitcoin a good place to park your money they're in this and hey Bitcoin's up like fucking 40% this month right? So if you haven't seen that video go back and watch it. So the point is guys the point is in this market when there is mass speculation on banks when there is mass fear based on Federal Reserve interest rates all you could do as a small cap trader which is the stocks that we trade the reason why we trade small cap stocks is because people are pretty much buying lottery tickets we are shorting the lottery tickets that they are buying so what I'm trying to do in this market cycle when all the money is focused on banks when all the money is focused on these crazy stocks I'm just waiting for my stocks to get to my desired levels and trade it what you have to remember as a trader is your job is to wait for the best opportunities only we are degenerates we trade every single day about trades a hundred different stocks a day right but for me for me I make the most amount of money on the big place the bed bath and beyond the AMC sector plays sympathy plays first red days so for me I'm trying to patiently wait for those stocks to come back to the market which they always do and attack them yes you could experiment yes you could try different things but for me based on my style trading based on what I'm looking to do based on what is my personality is I am sitting on my hands and waiting oftentimes you have to remember in trading you are not paid based on you showing up to the market you are paid based on the opportunity it's like what I used to work at Starbucks doesn't matter if 10 customers showed up or if one customer showed up if I clocked in I was getting paid but in day trading just because you're clocking into the desk doesn't mean that you're guaranteed a they have a that you're guaranteed to lose money right so when these market cycles are kind of slow like they are in March I'm taking a slow I made half a million dollars in February half a million dollars in February I think I'm barely up like 30k this month something something really small I don't even know I haven't even checked my numbers but the point is guys that you could see when the market is hot like it was in February I'm stepping on the gas I'm hitting the nitrous button I'm fucking doing everything that I can to go but when the market is slow I'm taking slow I'm waiting I'm just trying to control my FOMO control my greed because the worst thing that you could do in a slow market cycle is to force trades and lose money okay so we're in a really weird place in the market right a lot of people are betting that the market is going to go back to the lows in my opinion I think the lows are in in my opinion with the Federal Reserve starting to lower interest rates with them start to print money I think we might have a chance to go even higher right so that's pretty much where I'm at in terms of market cycle credit suice is crazy the Federal Reserve is crazy Wednesday is a very big day to see what the Federal Reserve does it will jam the markets up in a crazy way it'll jam the markets down in a crazy way so I think the market is kind of waiting to determine what's going to happen on the Federal Reserve rate hike day and as you guys have seen small cap stocks are slow so okay it's totally fine let it be slow but use this time to double down on your education use this time to go watch my live training videos and use this time to just step sit back learn and see what we could kind of pick up from this market cycle so if you guys are interested in learning how to trade if you guys have more questions about trading go to myinvestingclub.com slash webinar this is a free mentorship course designed to teach you how to go from A to Z in trading and it includes a live trade for me as well so this is for non-members only um so check that out additionally please subscribe to the channel please leave a like please leave a comment please leave a comment about one lesson that you learned from today's video and maybe we'll send you a discipline workshop shirt so hopefully this video helps additionally guys one last thing if you made it till the end of this video okay right here's the end of this video where most people close the video they skip the video they fuck the video whatever it is I want to ask you guys what type of content do you want to see more for me okay because you know I'm kind of getting sick of these videos it's almost the same thing every single week and you know I'm recording live trading videos I'm recording you know trade recap videos but I want to ask you guys as the audience that is watching these videos what do you want to see more of do you want to see more of the day trading vlogs with George do you guys want to see my trades and then I kind of go in and do like a trade review trade recap the live trades I have reserved for MIC members but please guys I want to kind of reach a bigger audience I want to kind of make MIC more mainstream so I want to ask you as the audience what type of content do you want to see from me please leave a comment please let me know if you guys like these videos and fucking I'll just keep doing these videos but I want to kind of maybe do it like a Monday psychology video maybe like a Wednesday trade recap video and then like maybe like a Friday vlog video so I'm just trying to thank guys but I would really appreciate your feedback on what you want to see from me so thank you everyone leave a comment leave a like and I hope all this crazy stuff quantitative easy quantitative tightening money printing this that doesn't confuse you and if it does ask ask we're here to help so thank you guys I'll see you guys back in MIC