 All right, everyone, I am back here for another bank update. So the last time I recorded a video was on Monday. So between the two days of me recording a video, we have more banks crashing, more banks going under. Today it is Credit Suisse, which has about $500 billion in assets under management. This is a very, very, very big bank. And Credit Suisse is down 25% today, which is really, really bad because now it is affecting the European markets as well, right? So let me kind of give you guys an update on what's been happening. So Silicon Valley Bank, what the government came and said is that they are gonna cover all the deposits. So let's say I had a million dollars in this bank, the FDIC covers 250,000, and whatever is left, the government is gonna cover it apparently, right? That's the word on the street. So they're trying to make the depositors, not the bank, the depositors. People that deposit money whole, okay? So that's good. The market liked that. The market really liked that because it said, okay, the banks are safe, blah, blah. And then now today, two-fold FRC, First Republic Bank, has been downgraded by the S&P 500 to junk, okay? Stock cratered again today. So that's not good. Now Credit Suisse, they have something called Credit Default Swaps. So if you guys have ever seen The Big Short or seen any of these movies, you hear this term Credit Default Swap. And basically the easiest way to explain it is it is an insurance policy in case the bank defaults. So you get insurance, and if the bank crashes or the banks go to zero, you get paid on that policy, okay? So what happened in The Big Short is they were buying Credit Default Swaps on all of these mortgages. So if the mortgages went bust, the insurance would pay for it. Credit Suisse has, what is it called? Credit default swaps that are going insane right now. They are pricing that there is about a 50% chance that Credit Suisse is gonna go to fucking zero. 50%, okay? That's not good. That's not good. So this is causing more panic in the markets, okay? And yesterday, CPI numbers came out. CPI numbers were pretty freaking good. CPI is currently at 6%, it's down year over year, which is good. Today, PPI came in, right? That's also pretty good. But the problem is in my opinion, the markets no longer care about inflation. I know inflation's a big deal. I don't wanna lose 6% of my dollar every single year, but the markets are more concerned with the entire banking sector going under. So it's almost a game of picking the two evils. The Federal Reserve has two choices here. Choice number one is continue to raise interest rates and risk more banks failing, but inflation comes down more or they don't raise rates anymore. They even cut rates, which would probably bring inflation higher, but it would protect the banking system. So the Fed is in a really, really interesting spot. All these futures traders, all these traders are betting that we are gonna get rate cuts this year, not even hikes cuts, they're gonna cut rates this year. So it'll be very interesting to see what happens. Now, in terms of how can you make money on these stocks? I mean, I don't know about you guys, but I can't trade this First Republic bank shit. I can't trade this Western Alliance bank shit. I'm not a multi-billionaire. The multi-billionaires can't figure it out. The multi-trillionaires can't figure it out. So although these stocks are in the news, although these stocks have all the headlines, just because it has the headline does not make it a great trading opportunity. I'll give you an example. Today I had a pretty solid day. I made about $3,000 today on THMO. And the reason why I'm doing, I guess okay in this market cycle with all the banks going, is I'm not focusing on the banking stocks, okay? So our edge, our focus, the way that we make money is we make money on small cap stocks. Small cap stocks are pretty much lottery tickets for the average guy. They buy a stock at $2. Like if it goes to $20, I'm gonna retire, but most of the time just goes back down to a dollar crash to 50% and we make money when the stocks go down. So the key is when everyone's talking about the banks, when everyone's talking about all these crazy things, I mean, I can't make money on these banking stocks, it's above my pay grade, I don't know what the hell's going on. But what I know is I have a consistent strategy on these small cap stocks. So long as I focus on these small cap stocks, I'm gonna make a pretty decent amount of money. So THMO pretty much shorted today around $4.60, got out around $3.90, made about 70 cents a share and called it a day. So the best thing to do if you are a small cap trader or regular trader, do not feel pressured to trade these banking stocks just because everyone is talking about it. Oftentimes they are the most risky, they are the most difficult, they are the craziest. Focus on the stuff that you have an edge on. And today THMO had an edge. Yesterday whatever stock yesterday was moving, had an edge, it was a small cap, not a banking stock. So if you're trying to slay the drag and you're trying to fight against these billionaires, these trillionaires with the banking stocks, you got a better chance of lighting your money on fire. But in the overall macro economic world, banks failing is not good. It's not the big banks like JP Morgan and Bank of America that are failing. If anything, those banks are getting stronger because people are moving their money out of the small banks and putting it into the larger banks. I think I saw somewhere that Bank of America had like a $20 billion in money, just deposits inflow in the last like two days alone or something insane. So people are taking their money out of these small regional banks like the First Republic Bank, the Western Alliance Bank and parking it into larger banks because those are more safe, which obviously makes sense. But for the ramifications of something like Credit Suisse that's kind of going to the credit default swaps are pricing. So what that means guys is the credit default swaps are going up. That means that more traders are betting that the company will default. And if the company does indeed default, they will be paid, right? So it's essentially like a highly leveraged way of shorting these companies. So it'll be very interesting to see what happens, but in terms of for us, for the average day trader, for the average investor, I mean, hey, let's keep looking for opportunities every single day. Let's keep trying to make money on stocks that no one's really talking about and let these billionaires figure out these banking stocks. Additionally, I don't know if you guys have seen but AMC has proposed a reverse split. So a reverse split is when they cut the amount of shares that's out there and raise the stock price, right? So essentially nothing changes, right? Essentially nothing changes. You guys go out and invest the PDA and look up what a reverse split is. Reverse split is usually not good for the company. What is really good is a Ford split, which is what like Amazon and like Apple and all these companies do, right? So AMC has proposed a stock split. Stock is obviously crashing because anyone that knows knows that it's not good for the company. But in my opinion, after this stock splits, they are going to pump the shit out of this stock. They're gonna pump it and pump it and pump it and I'm telling you guys, I think AMC is gonna be another six figure opportunity in the next coming weeks, in the next coming months, after the reverse split and after the pump. So be on the lookout for that. But other than that, this is today's banking update. I am your certified, non-certified banking associate expert, expert in not knowing shit, but this is all the information that I have for today. So hopefully this video helps you guys. If you guys have any questions about Credit Suisse First Republic Bank or anything else, please leave a comment. I'm the guy that personally responds to all the comments and hopefully these short form videos are working well for you. Additionally, I see that a lot of people that are watching these videos are not subscribed to the channel. So please subscribe to the channel, hit the bell button to get up-to-date content from us. And additionally, if you want to learn how to trade, if you're curious about trading, if you wanna see some live trades from me, go to myinvestingclub.com slash webinar and there's a free mentorship course for you. Thank you everyone and I will see you on the next banking sector update.