16. S01:E11 – Walking Dead, the Zombie Bank Apocalypse

  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. If you are new to the show please read the LEARN MORE section which follows the show description and chapter timestamps, underneath the embedded video below. In addition to the embedded video above, there is also an audio player at the bottom of this page The Small Bank Extinction Event 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 —————– CHAPTERS —————– 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 ———————