Banks get smoked as depositors run scared.

Fortunately we get a Sunday Night STICK SAVE!

We have some bones to pick - bad math and even worse work ethics.

Where are the bargains? We have some thoughts.

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Warm Up

- Back from Central America!

- Largest bank failure since 2008!

- Fed will keep raising until something breaks - HELLO!!!!!!!!!!!!!

- Worst Fed Ever!

- General lack of any business sense - math clearly not a priority in last generations

- - No attention to detail - oversight sucks- management is limp

- Sunday Night STICK SAVE! (A joint statement from the various regulators involved said there would be no bailouts and no taxpayer costs associated with any of the new plans. )

Market Update

- Capitalism is Dead - Moral Hazard Lives On!

- 2-day panic attack with region banks - SVB Blowup

- DJIA down for the year

- California Banking system is imploding - RUN-ON-Bank

- CPI - not slowing down too much - 6% YoY

- Everyone now banking on less Fed hikes due to banking crisis - or none... Or cuts! (85% chance for 0.25% increase next week)

Coming up this week on Andrew's TDI Podcast - Guest, Anthony Scarramucci

BONE TO PICK

- All these tik-tok nubes  - want to be a millionaire but have no idea what that means - LET me explain something from someone who works with lots of money all the time... It takes work and then more work

- - You can't just make it, you need to keep it. That is just as hard.

---- Making it is not just seeing it on social media - it is a grind and something special - hard work - which it seems is not what people want.

----- Sit at home, no oversight, playing on phone, personal time and personal boundaries that are above work AND not watching the details.

--- This is what creates the mess we see today - Then we want government to bail us out! Childish!

Assuming everyone knows what happened. Right?

- Banks started to get squeezed as assets/loan valuations got crushed under higher rates

- Fed pushed hard and banks did not risk adjust

- Bad oversight  - SVB - Moodys was going to downgrade, Theil makes some noise about problems, stock offering to raise capital, sold bonds at loss - run on bank

- Started with other banks and the problems from overlevearaging with Crypto - all the dominoes falling had to impact firms (tech pulling cash to meet needs, other companies trimming up)

- Realization hit that regional banks could have more problems

The Fed is Actually Looking At Itself

- EPIC lack of oversight, blinders on as usual

- The Federal Reserve Board on Monday announced that Vice Chair for Supervision Michael S. Barr is leading a review of the supervision and regulation of Silicon Valley Bank, in light of its failure. The review will be publicly released by May 1.

- "The events surrounding Silicon Valley Bank demand a thorough, transparent, and swift review by the Federal Reserve," said Chair Jerome H. Powell.

- "We need to have humility, and conduct a careful and thorough review of how we supervised and regulated this firm, and what we should learn from this experience," said Vice Chair Barr.

- There will be findings, many many months out as to how they could have done better, but nothing will come of it.

----- Fox guarding the hen house. Should be independent but Fed is above it all - right?

Late Call - Or is it Early?

- Moody's cuts outlook on U.S. banking system to negative, citing 'rapidly deteriorating operating environment'

- The firm, part of the big three rating services, said it was making the move in light of three key failures that prompted regulators to step in Sunday with a dramatic rescue plan for depositors and other i...