 All right. Hey, how's it going everyone? Welcome back. Welcome back dedicated to financial literacy Russell Moore coming to you live again My doctor called the last time so I ended I ended I ended my segment and so I thought I'd give a little part too and I'm not gonna be as detailed like I said I'm not gonna again this channel is for newbies anybody that's new to financial Financial literacy and just you know, you're just trying to get a handle on what's going on either if it be by stocks bonds crypto Bitcoin right and Budgeting I cover that I just my channel covers a bunch of stuff and I again, I just I Really didn't I didn't start this channel to continue the channel. I started the channel because a few friends during the pandemic We're asking me some questions about investing and I was like, we can't meet we couldn't all hook up So I just decided to do some YouTube. So it's continued on and so I'm gonna continue to do it I Want to do one more kind of like Bible study to as well. So I'll probably do another channel just for that I don't want to mix the two sometimes I do bring in the word and the Lord, but I Want this just to be about finances and that's why I try to keep the videos around 10 15 minutes Not very long hit it and quit it, you know, that's I just want to hit you But what is my saying? What do I always say? Here's what I always say if you don't learn you will not earn and I got another one that I tell a lot of the young people if you don't read you won't lead Everybody wants to lead but nobody wants to read In other words study Okay, so study to show yourself a workman that this won't be ashamed SVB so I want to go back to this whole thing about Silicon Valley the Silicon Valley Bank and I want to kind of explain it a little bit more in kind of detail today Kind of give people some understanding of what happened. So Here now their bank is geared towards Silicon Valley and anybody knows anything about Silicon Valley is in a northern California in the San Francisco area and that whole area is Is is is dedicated to tech? I mean, that's where Facebook and Google and all of these tech companies started It's yahoo everybody was there. It's the tech tech booming industry there And so that's not knowing what much the case any longer. I mean people They've uprooted to go into Texas. There's some that went to South Carolina I mean, they're all over the place Google's actually up here has a facility here in southern California. Why live and so But that's pretty much it so many startups there's a lot of new startups and There would have problems with the the top tier banks getting funding and it's just it's not impossible But you know, it was it's very tough and many of the the well-established tier one banks such as Chase Wells Fargo B of A Morgan Stanley UBS, you know, a lot of the well-established Banks To say the least they wouldn't they just wouldn't give them a time of day a lot of these startups because you got to remember Some of these innovations that haven't been proven Some of them have some of them haven't some of them are in the midst and so you're taking a chance and so So there you have one of the reasons why you have the regional banks a bank like CVB that was established It was specifically for them Now they have other customers and depositors, but a lot of it it was geared towards Innovation and new tech groups and giving them funding giving them loans now Like I said before in the first video I said when you give yourself say just a regular consumer when you give your money to the bank Say you have a you have a job and you have direct deposit it goes to your bank A lot of people might think and I know this is basic But you just never know how many people out there that may not know this. That's why I'm saying it You know, they may not know that when you deposit money into the bank You may think okay, my money is right there in the bank But your money along with other depositors is a lot of times It's it's a group fund and they've taken that money and invested it in other areas and Get this about get it your money is being invested, but you're not benefiting from the investing the bank is I When I told somebody I told one person at one time and they were like what I'm getting my money out of the bank I'm like I didn't tell you that to get your money out of the bank. My point was and That's where the button. That's how the banks grow and that's how they make money is they take your money It's like they're borrowing your money using it to invest Maybe it's stocks bonds land commercial real estate Reads I mean all kinds of things they invest in commodities To turn over more money with your money Yet, you don't get anything from it, but your money should still be there Whenever you need it you put the money in it's money that you've earned Every bank is under the F's the FDIC and federal depository Insurance corporation So I believe that's it's been a while FDIC so What their job is is to regulate To make sure that these small banks large banks all the banks are doing what they're supposed to do that They're complying that they're not making too crazy a risk now SBV here's what or SBB this is what they did they took a portion a good portion of the money and then they invested in bonds Bonds that mature But here's what you need to know about bonds Say a 10 year bond 10 year yield bond After 10 years it matures, so it has 10 years before it matures and say it's 5% 5% yield A lot of bonds right now are at around 4 to 5% well what the bank didn't know was that and I knew this I said this in early 2021 In fact, I was so sure of it that I told my wife we needed to buy a home before 2022 I Said we cannot go into 2022 without a home because I believe the Federal Reserve is going to raise the rates And that's exactly what they did And here's what I said go back and look at some of my videos I said that the Federal Reserve will raise rates begin to raise rates to deal with inflation by the first quarter of 2022 I said this in 2021 everyone was saying late 2023 2024 some people were saying they were gonna raise rates in 2024. I knew just from Just from talking to people and how expensive things have you started getting I Knew that inflation was gonna be way too high and it's a Federal Reserve is gonna have to do something Jerome Powell who's the head of a Federal Reserve. So what did it? What did they do? I said by the first quarter they would raise rates March of 2021 I'm sorry 2022 is when they raise rates It was the last month of the first quarter. I Said wow Did we call it Lord? and so Well, here's how SVB all of those regional banks that have put out all these investments on these bonds Well, when the when the rates were raised The bond yields went down. So say now look at this. We were at zero the rates The the federal rates, okay was at zero They were at zero we are now at about four point seven five four seven five almost five percent Well, when the when the when the Federal Reserve raised the rates each percent Reduces that bond about ten percent So think about that for a second that means the bonds that they purchase we're almost at five five percent That means ten percent per one percent For every one percent the Federal Federal Reserve Raises the rates The bonds get reduced about ten percent. So that's almost fifty percent. They've lost So half the money that they put in and invested in bonds. They've lost But here's what they had to do they have to report that to the SEC When they did that The investors now get this circle the company circle Invested it invested three trillion in that bank. I mean, I'm sorry three billion in that bank Roku and I've said this to in the other video part one of this But I found out Roku how much? 400 million 400 million Roku invested in SVB Roblox, I think of 150 million Sun Run several companies and multiple investors and including VCs venture capitalists a Lot of people have money in there. I'm talking about big money. I'm not talking about little money. Think about that. Just alone Roku the streaming company to streaming Roku 400 million dollars they had can you imagine what so they saw them file it on the SEC? You got to report that it's one of the reasons why they see oh and the CFO that a week two couple of weeks before they did this They they sold shares and see whenever you sell shares of a public company you've got to report that to the SEC It's got to be listed So they sold then it's and then the CMO He sold shares in January and February and get this the CEO from what I've read Was a director of the Federal Reserve in San Francisco So the plot thickens you guys Yes, I believe the Federal of the Federal Reserve. I think I Think pow your own pow had to know about this It's probably it's probably why when Janet Yellen was talking in that first Friday last right? She was saying no, we're not gonna build them out Then she talks to Jerome Powell then all of a sudden they hit up with Biden and now all of a sudden They came up with this plan 25 billion a Plan to get 25 billion for anybody's out there who's jacked up Who's messed up? Who's take their bank their their depositors money and Manege those funds That's why I said in the first video. I'm not telling people what to do. I'm not a financial I'm not a financial. I'm not a broker. I'm not a financial analyst. I'm looking to take some exams It's a financial planner By next year, but I'm not giving you I'm not giving you financial advice I'm just simply reading I'm simply studying this stuff and what I'm saying is What I'm saying is They blew it and so I was telling people look if you got your money in a small bank Like us, you know credit union a regional bank. I Hate to say this because you don't want them to suffer But but there's no transparency. They're not telling the depositors what they're doing You don't know what your bank is doing with the money that they that you bring to them So if I'm in a credit union, I'm gonna at least take 70% of my money out of that and put it in a tier one bank and some people say well I don't trust chasing Wells Fargo. I mean look at Wells Fargo and what they did the corruption that they did several years ago They can't they can't talk B of a they've all had moments of corruption So I you know, I've got to just don't know where I live But I brought some cash home put it in the safe and here's what I'll tell you what I would encourage you to do. I Was looking at historically what gold is doing Everybody's talking about gold is on the rise. It's gonna be on the rise this year It's gonna be the probably the out the the asset that performs everything stocks bonds everything is the prediction I'm not saying that okay, but I I do believe it by looking at some of the research I've looked at a few charts in the 1970s Gold did something it was at about a hundred dollars an ounce And what it did is it went it started trending up and then it consolidated meaning it just Leveled off and didn't go up or down for about two or three years it consolidated and then it took off to 900 $900 an ounce nine times It went up nine times Everybody's predicting it's gonna do that and guess what there was a recession at that time and we're headed for a recession I believe we've already been in a recession But most experts say recession is gonna be in the second second half of this year so Check it out Check it out you guys Recessions coming in the 70s. There was a recession the gold is doing exactly what it did in the 70s It's been consolidating But the last couple of days it's went up. So many people is gonna be it's believe it's gonna get to four to five thousand dollars an ounce It's a great hedge against inflation and cash The more you hear the cash declining the more you hear cash declining you keep hearing that it the more you guys keep hearing that if you keep hearing that That means gold is gonna I'm telling you gold's gonna keep shooting up gold and silver silver It's always outperform gold by the way It doesn't get the highlights because it's an industrial metal and during a recession industrial metals will suffer So that's why it's it's kind of low right now gold is the thing, but I would say silver as well and copper Because you need the cobalt I Mean everything's going EV right batteries electric Nickel and cobalt you're gonna want that so you want copper too. So Look into the commodities. That's what I would encourage you. I'm not telling you to go out and buy I'm not telling you to go and get all your money out of the bank That's what I'm gonna do. No, I'm just kidding. I'm just kidding. I'm just saying just be wise I'm gonna encourage everyone to be wise. I'm gonna do another part I'm gonna do another part to this video, but I'm gonna close right here And I just want to share with you guys. So that's kind of what happened When the Federal Reserve rates went up it affected all the regional banks Because many of them were invested in bonds and those bonds begin to they went down The rates went up federal bonds went down if you were invested in bonds, you were hurting at that time Now's a good time because the yield is at about four or five percent, but I'm not talking about I'm not talking about your two-year three-year bonds. All right so and here's the thing there's a couple other banks signature and There's a few others that are coming out there being exposed There's gonna be more you guys what mark my words here. I've said it 317 March 17th, it's around 7 o'clock p.m. And I'm telling you there's gonna be more that comes out More banks gonna get exposed regional smaller banks credit unions that are not that that have mixed mixed that has missed manage the funds of the depositors and They don't have the money So if you got a bunch of people coming to get their money out of the bank, there's not enough money there The money is out. It's called its outflowed, right? They've been there in other places They've been investing and doing other things. Well, if those investments don't come if they don't do well They lose money on those investments. That means your money is lost So that's why you want a great management team over your bank And you can all got to do is go to the website They should have a website if they're a bank and find out who's in leadership and find out their history. What have they done? What did they do before they were the CEO of the bank? Where they homegrown do they come from out of the bank? Did they work at the bank? Do they have a history of work on a bank? Do they have a history in finance? Do they know what they're doing? all right, I Love enough ranting for me. God bless you. Keep moving. Stay strong. Stay prayerful. God's gonna move. All right. I'm out of here Russell