Hello fellow rebel capitals hope you're well I'm right here with my good buddy Peter Schiff and boy oh boy we've got a lot to talk about Peter I mean we've got Silicon Valley Bank we've got Credit Suisse now it looks like Deutsche Bank having, but I want to start off by getting kind of your insider insights as to you know what's going on to the banking system because you had a bank and not only that but I know you were warning about kind of all the asset side of these banks balance sheets for a long long time and now we're kind of see it coming or seeing it come to

fruition so is this just the beginning and now we're kind of seeing it come to fruition.

So is this just the beginning or has the Fed fixed the problem?

What do you think?

Well, thanks George for having me on and I'm happy to join the rebellion here.

But yeah, you know, especially, and I spoke about this on my podcast yesterday and I tweeted

about it, but I was watching the congressional hearings and there was a senator there who you know I

Senator Kennedy who made some good points and because you know Senator Warren and everybody else are like you know if we only had more regulation if we only had you know more government than this wouldn't have happened

Right, but of course it's the all the government intervention is the reason it happened.

But they were talking about the fact that Silicon Valley Bank was just not quite big enough

to fall under the purview of the Fed and so therefore the Fed never ran the stress tests on

on this bank and the senator said well even if you had run the stress tests,

it wouldn't have made a difference

because the bank wouldn't have failed

because your stress tests were testing the wrong thing.

And I pointed this out, and I actually resurrected a tweet that I put out three years ago

when the Fed announced the results of these stress tests and the Wall Street Journal and New York Times were lauding them, you know, banks

pass stress tests with flying colors, they ace the stress tests, like nothing to worry

about.

And I remember when they came out, I looked at the scenarios and the most extreme scenario that they could envision

was one where interest rates went down and inflation went down and so the value

of their collateral actually went up in that environment, right?

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