SEASON 01 – EPISODE 11
Welcome back to Milkshakes, Markets, & Madness where we invite you to share a laugh with us each week as we discuss our favorite Twitter tantrums and the madness of financial markets.
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There is nowhere to hide for small regional banks. The trend towards mass banking consolidation and small regional bank extinction was already four-decades in the making.
However, after a string of bank failures in less than a week The Feds announced emergency measures over the weekend to calm bank run fears.
But, is the Bank Term Funding Program (BTFP) just a bank bailout by another name, and will it be enough to keep smaller banks from going bust?
The exodus of deposits from small banks to the mega “Too Big To Fail” banks continues, and although in the short-term these smaller players may live to fight another day, their inevitable extinction seems to be accelerating like a meteor crashing to earth.
Will the “local bank” just be a fossil of the past, or are they already the walking dead?
These questions got us thinking, was this the plan all along?
Is the banking cartel taking a page out of the Dollar Milkshake Theory – chanting “there can be only one” while wearing black hooded capes in a candlelit room?
Perhaps the idea that “The Fed and Friends” want to cull the small banks and form a mega bank sounds a bit conspiratorial, but there is a bit of truth in every conspiracy, and there is a bit of conspiracy in this episode.
It may not be time to repent and save your soul, but it seems like a good time to keep your head and save your portfolio.
Learn more on the latest Milkshakes, Markets, and Madness Show.
https://youtu.be/DApAvEyFWLs
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CHAPTERS
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00:00 – Disclaimer
00:25 – Video intro (Short)
00:55 – Host intros
01:52 – The wrong week to stop sniffing glue
Episode 10: Banks Dropping Dead
03:11 – Recapping the SVB “liquidation” event
04:47 – The outcome and the response (Bank Term Funding Program)
06:22 – Was it a bail-out?
09:39 – Calming bank run fears
11:27 – The moral hazard
12:57 – Is BTFP the new BTFD?
15:20 – Is this QE?
18:32 – Too hike, or not to hike, that is the question
19:30 – Doing “whatever it takes”
20:31 – Nowhere to hide (or hedge)
22:41 – The extinction of the small regional bank
30:23 – Another boot on the neck of smaller banks
31:21 – Do not confuse arrogance for stupidity
33:51 – Fix your vocabulary for the sake of your portfolio
37:44 – Unintended consequences
39:44 – “Future” dollars and the global Cantillon Effect
42:12 – Salutations
43:00 – Outro / Disclaimer
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LEARN MORE
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Every week, Brent Johnson and Jon Kutsmeda invite you to share a laugh at their favorite Twitter tantrums, and the madness of financial markets.
If you are tired of drawn out, jargon filled, boring financial podcasts, then tune in for Milkshakes, Markets, & Madness to enjoy the lighter side and off-topic discussions that include sports, politics, memes, travel, and whatever fun they find during the week.
For anyone who is unfamiliar with our hosts, or new to the Dollar Milkshake Theory, please visit the About Us section of this website for additional links that help explain it all.
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JOIN THE MADNESS
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Share your thoughts with a comment on the YouTube Channel and hit the SUBSCRIBE button while you are there!
Join us each week for another episode, released every Saturday morning Eastern Standard Time.
Until then, don’t be bashful, share with us any madness you come across during the week.
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CONNECT WITH US
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To make sure you always get your weekly dose of Madness, please subscribe to our YouTube channel @MilkshakesPod
You can follow Brent Johnson on Twitter at @SantiagoAuFund
You can follow Jon Kutsmeda on Twitter at @JonKutsmeda
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