 Hey, good morning. Good morning. Good morning, everyone. How are you? Russell Moore coming to you live from dedicated to financial literacy and Lots going on lots going on. I thought I'd get on I've been I was sick about a couple of weeks I actually had pneumonia Didn't know I had it, but I was it was a rough patch, but I'm here and I'm well Hey, don't mind my son and all of his toys in the background. I got it. I got to talk about this real quickly Again, this channel is basically for newbies and my friends and family and my church and stuff So I'm just gonna get right into it. I know most of you already know about it The the SVB Silicon Valley Bank and it's insolvent and Let me just kind of explain real quickly and I'm just gonna go over this Really briefly. I'm not gonna give you a lot of details. So I just want just a novice person person It doesn't know much about financial The financial literacy or financial Services and what is happening? because a lot of people are panicking and There should be an alarm. I'm not saying that you shouldn't be alarmed, but I don't think you should panic number one Silicon Valley Bank What they did and here's what you need to know about banking when you put your money in a bank and many of you may already know this But this is good. This is good review When you put your money in the bank You deposit your money say you got direct deposit and your money goes from your paycheck Your paycheck goes into your bank when it goes into the bank. It's not like your bank Just put your money in that account and it's just sitting there Basically if they're saying this is what you've given us, but most of that money Most of that money is already out. It's already being used and the bank is making money on your money So they'll get into investments, real estate mortgages commercial real estate of stocks and bonds That's what svd svb did they got off into some bonds And here's the thing about bonds bonds will mature But you don't get the interest the money from that bond until it mature. So say you get a bond you purchase a bond Say it's a three-year bond Okay, it's a three-year bond at five percent Okay, five percent interest And that bond doesn't mature for three years So it's almost like it has to go to that three years once it gets to that three years Then you're you will get that amount that five percent of all the money that you put in there to purchase that bond But in a situation where a bank Here's what happened people started finding out That svb was insolvent They found out about it and as word travel people started saying I got to go get my money Not just people we're talking about major companies Let me give you a few companies that decided because remember they tailored to Silicon Valley startups Roblox had 150 million metaphor Etsy Roku Roku had 25 percent of their cash. That's a fourth of their cash as a company in there I don't even know how much that is. It's not reported yet. How much money sun run Various startups were a lot of venture capitalists a lot of Tech companies and biotechs Startups people that are starting up have great ideas innovation But they don't have the capital they don't have the cash and see in many cases Those people couldn't go to the tier one banks like JP Morgan or you know Wells Fargo Bank of America They they would not lend them the money. So that's why these kinds of banks these regional banks exist like svb Because they'll do it Right, but they took on some risks that they shouldn't have and then backfired Now everybody's like we want my money and then on friday people were going in to get their money and then money wasn't there So then what happened was the federal reserve said at first we heard saturday We heard saturday evening even all the way up till sunday I wouldn't say sunday, but saturday evening. We heard that the federal reserve the government was not going to build them out Well, of course there was an emergency meeting between Janet Yellen pow Jerome pow who's head over federal reserve and our president And they got they said well, you know what they came up with something They said, you know what we need to do something because otherwise people are not just going to start pulling money out of that bank But it's this is going to be a nationwide crisis and what's called a bank contagion So there was a concern that there would be a bank contagion Meaning a contagion mean what happens when something's contagious it begins to go from one person to the next So they were concerned that the people would go on bank runs what they would call a bank run In other words people going to the bank getting all their money out even though JP Morgan it's not insolvent, okay But because people do not trust our federal government because they do not trust the bank eat system. They're like, you know what? Let's go get our money now especially small banks regional banks like A lot of people have their money in like Smaller banks credit unions Okay, and I would say this Not to cause people to panic if you have your money only in a credit union. I would not do that during this season Not I'm not telling you to go run and grab your money out of the credit union I am no, I would say but Excuse me still got a little cough from the pneumonia bug, but um Here's my thinking I felt bad because I actually was talking about this problem a week and a half ago And I got when I got sick. I didn't put anything on air. I didn't do any videos on it But me and another guy Jeremy. I was emailing Jeremy with financial education telling him look These regional banks this could be a problem. Why are they so quiet? Why is uh, it just seems like something's being hidden there's some hiding going on and Let me tell you something watch and let me tell you this About 11 probably about two weeks ago the ceo For silicon valley bank Sold some of his shares to the company the cfo About two weeks ago sold some of his shares The cmo In january and in february sold shares. Why are these top executives selling shares? They knew it You can't tell me this wasn't insider trading And you know what if it was one of us we'd be in prison We'd be in prison we'd go to jail This is obviously insider trading. They knew something was going to go down They saw it and they and they began to sell their shares I think the ceo was like it's like worth three million three million Three million dollars worth of his shares was sold Get this too. Oh, this is going to really rock your world It turns out that the ceo for silicon valley bank the ceo Was actually a director of the federal reserve in san francisco Duh What's going on Jerome powell What's happening federal reserve? Did you guys know about this? Did you see this coming? I heard you guys. I don't want to just talk about the problem Here's what I would suggest. I am not giving you financial advice though You still have to determine do your own research. Remember, what do I always say if you don't learn you will not earn But I am going to say some things. I'll I'll put it this way These are some of the things that I've been doing Increase your investment on gold increase my investment on gold silver copper commodities increase Another thing that I've done I'm not telling you to do this I'm I'm getting my I'm getting my money out of the banks most of the banks I'm not telling you to do that I still have money in I still have money in chase Top tier banks. I'm I don't feel like It's time to panic with them But I am taking a portion out I wouldn't leave all my money even in the top tier banks a credit union Sorry I'll keep the account open. Maybe leave a hundred bucks in there But take the money out just until the storm passes You guys look there's a scripture in the bible. Let me give him. Let me give my my my my my peeps My christian peeps a little scripture that I spoke I quoted this about two weeks ago a wise man foreseeeth the evil And he hides himself A wise man will see something coming around the horizon and he prepares for that So it's it's it's not panicky to pull your money and just see what happens because let me tell you Here's my prediction. We've already had two other banks this weekend Get exposed and here's what happened when something like this happens the federal government actually Takes the bank fdic federal deposit your insurance The fdic actually takes control of the bank Because here's the problem. Obviously there was no regulation. That's a whole another video. I'll get into that A lack of regulation And so what's happening probably now They know there's a lot of banks out there Regional banks that are probably insolvent and they're probably trying to keep the lid on it and not let it get out But i'ma tell you if it gets up to 10 banks You're going to see a massive amount of people running out to get their money out of these banks Think about it. What if your credit union is insolvent and you just don't know about it What if that that neighborhood that bank that private bank that small bank that you got that you invested in What if it's insolvent? They're not going to announce it just like svb didn't they're not going to announce it They're not going to say hey, we're insolvent come get all your money They don't have enough. That's what happened. The people came to get their money, but the money is out Their money wasn't there. It wasn't in the bank It's been invested unwisely invested There's got to be a change in our banking system Anyway, that's my doctor And i gotta go But i just wanted to let you guys know stay tuned. I'm going to do another video on this. Have a great day And pray pray pray pray god's gonna work it out