رونوشت کامل Intelligent Investing with Glenn Leest: Unveiling the Intricacies of the US Banking System and the Rise of Digital Currencies

00:04:31.944 --> 00:04:35.490 So on 81, that's what? 00:04:35.490 --> 00:04:37.091 Is that $74-ish? 00:04:37.713 --> 00:04:38.334 73. 00:04:38.334 --> 00:04:41.305 Yeah, you can see, they just keep doing that over and over. 00:04:41.767 --> 00:04:42.088 Yeah. 00:04:42.088 --> 00:04:48.351 So the important thing to recognize is what is that fractional reserve for that particular bank? 00:04:48.351 --> 00:04:51.021 And because that determines a lot. 00:04:51.021 --> 00:04:52.490 And then what are they doing with the money too? 00:04:52.490 --> 00:04:54.459 Because they have a whole bunch of different options. 00:04:54.459 --> 00:04:58.202 They can do the loan process and they charge interest, which is how they make money. 00:04:58.202 --> 00:05:05.197 They can also do investments too, so they can take the money you deposited and invest it. 00:05:05.197 --> 00:05:07.855 Now, investing is a broad term. 00:05:07.855 --> 00:05:15.625 Most banks, when they invest quote unquote they are usually buying very safe assets like treasury bonds or fixed income products. 00:05:15.625 --> 00:05:22.887 Usually, buying high risk stocks is kind of frowned upon because it's so easy for it to go south. 00:05:23.550 --> 00:05:24.932 But they could, they could yeah. 00:05:25.033 --> 00:05:37.310 Yeah, and I think that was part of the 2008 problem with Lehman brothers is that they were making risky loans on those subprime mortgages and then they're investing their money back into it as well, so it was like a house of cards. 00:05:37.310 --> 00:05:39.425 It was just doomed from the beginning. 00:05:39.425 --> 00:05:40.870 Because of that, that reason. 00:05:41.271 --> 00:05:46.233 But even the more safe is that what happened with signature bank and these couple banks? 00:05:46.233 --> 00:05:50.975 Because they were investing the quote unquote, really safe assets, the treasuries yeah. 00:05:50.975 --> 00:05:56.367 But then interest rates spiked what they raise interest rates nine or 10 times over the course of a year. 00:05:56.367 --> 00:06:05.290 So then those old treasury notes that they invested in maybe six months or a year before were worth less yeah, and they kind of they kind of got themselves caught in that. 00:06:05.529 --> 00:06:05.790 Yeah. 00:06:05.790 --> 00:06:07.113 So here's a good example. 00:06:07.113 --> 00:06:13.315 So person deposits money into your bank and you say it was used, the same $100. 00:06:13.315 --> 00:06:24.990 We can add just bunch of zeros, because it's easy math that way, but $100 and they take 90 of it and deposit it into a US Treasury which is just a loan to the US government, and it pays. 00:06:24.990 --> 00:06:32.966 You say 3%, maybe you know, a couple years ago, and you lock it in for 10 years, but then they've been raising interest rates since then. 00:06:32.966 --> 00:06:45.408 Yeah, now that same loan or loan to the government is paying four, four and a half percent, and so your 3% bond is going to naturally have a price discount if you have to sell it. 00:06:45.408 --> 00:06:50.110 But if you keep until maturity, it's it doesn't matter, you get your principal back. 00:06:50.110 --> 00:06:51.737 So so it's. 00:06:51.737 --> 00:07:02.281 The SVB bank had a bunch of those and they were just planning on holding it to maturity and the problem they got into is they had to make all those withdrawals. 00:07:02.302 --> 00:07:12.911 Yeah, they didn't have to facilitate all the withdrawals from the customers and in order to facilitate that, they had to sell all those those fixed income products, and they sold it at a massive loss. 00:07:12.911 --> 00:07:15.617 Okay, and so that was part of the. 00:07:15.617 --> 00:07:25.971 The big issue there is well, if you think about, any bank would probably have trouble if everyone pulled out their money simultaneously, because no bank has 100% of all the cash on hand. 00:07:26.031 --> 00:07:30.975 Yeah, that's just not how the system works, or even close to 10% by what you were talking about, Glenn right. 00:07:30.975 --> 00:07:38.271 I mean so the classic run on the banks and people demand their money and get nervous, and then it forced them to sell the assets they had at a discount. 00:07:38.952 --> 00:07:47.851 Yeah, and I thought I thought we learned as a nation not to do bank runs, but maybe we're learning it all over again, cause any, like I said, any bank. 00:07:47.851 --> 00:07:53.196 It's going to put pressure on them to every single person tries to pull out their money. 00:07:53.196 --> 00:08:01.447 Simultaneously, they're going to have to try and sell off a bunch of stuff and probably sell it at a loss, call in all their loans and notes and it's just going to be a disaster. 00:08:01.447 --> 00:08:13.252 Now, some banks are better than others as far as how much they keep in reserves, sure, and so that's where the next layer of when you're looking at a bank, of what's important, is what are their? 00:08:13.252 --> 00:08:21.387 What do they have reserves on hand that actually are available for deposits to make good on those, or sorry? 00:08:21.408 --> 00:08:22.288 withdrawals yeah. 00:08:22.329 --> 00:08:34.182 Yeah, and so SVB was like 93% of their assets or something like that was, uh, loaned out or invested and so yeah, like we had not readily. 00:08:34.241 --> 00:08:38.234 Yeah, they had like 70% available on hand. 00:08:38.234 --> 00:08:42.749 And then you had billionaire, like funds and stuff, going in and saying I'm taking my money out. 00:08:42.749 --> 00:08:53.697 I think Peter teal was one of those and, um, and then the next person's like well, maybe I should do that, because each bank account, the stickers on the window Glenn $250,000, right Right. 00:08:53.857 --> 00:08:56.506 Insurance, so people would get nervous if they had more than that. 00:08:56.506 --> 00:08:59.076 Um, do you think it's over? 00:08:59.076 --> 00:08:59.398 Or? 00:08:59.398 --> 00:09:02.149 I mean, nobody has crystal ball I saw Warren Buffett

was talking about. 00:09:02.149 --> 00:09:06.907 Hey, he thinks more may be coming, but uh, the feds moved pretty quick on that one. 00:09:07.248 --> 00:09:14.328 Yeah, yeah, I think in like before they implemented the uh FDIC, backstop um off. 00:09:14.328 --> 00:09:21.238 To double check the dates, I want to say it was in the early 1900s, but before that they were having like 10,000 banks fail per year. 00:09:21.238 --> 00:09:29.567 And then, once they implemented the FDIC, kind of as a fail safe, then they're like having 10, 10 or less banks fail per year. 00:09:29.567 --> 00:09:36.490 So that guarantee by the government and the, the Federal Reserve, really brought a lot more safety and stability to the banking system. 00:09:36.490 --> 00:09:55.253 And so, as you're alluding to um Silicon Valley bank uh, one of the big names out there looks like they're going to get bailed out and they're going to get some help, um, from the Federal Reserve, the government and whether or not that's right or wrong is a different conversation, but that's kind of what it looks like is going to happen, and it happened in 2008 too. 00:09:55.253 --> 00:10:00.750 Yeah, they too big to fail is what they said, and they just bailed out the banks for what was really just bad behavior on their part. 00:10:01.206 --> 00:10:09.876 Okay, let's get more into and you're listening to intelligent investing with Glenn lease um, the secondary market and how banks sell their loans, I guess, when you make a loan. 00:10:09.876 --> 00:10:11.249 So I want to get into that a little bit more. 00:10:11.249 --> 00:10:17.758 Uh, and if you've got any questions for Glenn, give them a call at 928-225-2474. 00:10:17.758 --> 00:10:18.961 And you can always email as well. 00:10:18.961 --> 00:10:22.190 Intelligent investing at WT wealth managementcom. 00:10:22.190 --> 00:10:39.606 Okay, so we talked a bit about how they get the deposits in and how they then can um loan out that money and they only keep us a certain amount, usually 10% on the books, or so, uh, charge interest on loans, um, which means that the boroughs pay back. 00:10:39.606 --> 00:10:40.932 So so, talk, talk about that. 00:10:40.932 --> 00:10:42.437 You make a, you make a loan. 00:10:42.437 --> 00:10:49.759 You think a lot of times that they keep that on their books forever, that the bank um, you know, a lot of times they're going to have a Glenn's bank, for example. 00:10:49.784 --> 00:11:05.022 Yeah, a lot of times banks sell their loans where they say they do a mortgage and they get it approved and everything's good to go, and they may say, as a bank, you know, really we really don't want to hold this mortgage for the next 15, 20, 30 years. 00:11:05.022 --> 00:11:15.951 We'd rather just sell it to another institution, another financial institution, and just get um all that money back and maybe they'll make a little bit of money on the initial purchase, the upfront interest, that sort of thing. 00:11:15.951 --> 00:11:17.721 So

that happens pretty commonly. 00:11:17.721 --> 00:11:20.794 Um, you may have even had that happen in your mortgage, is that? 00:11:21.076 --> 00:11:21.799 I have a side, yeah. 00:11:22.383 --> 00:11:23.868 You see a different name on your mortgage statement. 00:11:23.868 --> 00:11:35.773 It means your, your loan was sold, and so some I knew this actually from a car dealership I worked at a long time ago is they would make the loan and then like 30 minutes later it's gone. 00:11:35.773 --> 00:11:41.866 Yeah, they sell it as soon as it got approved there, they did not want to hold that loan, which made me, you know, wonder why. 00:11:41.866 --> 00:11:43.235 Why didn't they want to hold that loan? 00:11:43.235 --> 00:11:44.220 Was it a bad loan? 00:11:44.220 --> 00:11:46.273 Or they just weren't in the business for long-term loans? 00:11:46.273 --> 00:11:46.676 I don't know. 00:11:46.797 --> 00:11:50.149 But they make some fees on the loan and they just get it off their books. 00:11:50.169 --> 00:11:50.731 Yeah, yeah. 00:11:50.731 --> 00:11:57.076 So the banking system, um, you know, they can also, uh, sell out those, those debt products, which they're doing in 2000. 00:11:57.076 --> 00:12:02.355 2008 is the CDOs and mortgage back securities, all those kinds of things. 00:12:02.355 --> 00:12:05.207 Um, they're just selling the debt to other people. 00:12:05.629 --> 00:12:19.028 I remember alone yeah, it was um bank X, for example, and uh, then you get the first statement, maybe from them, and then there was just somebody else that's like oh, where are your, where are your mortgage holder now, yeah, yeah, okay, who are you? 00:12:19.269 --> 00:12:22.926 Yeah, you know you know you're like okay, I guess that's how it is now. 00:12:22.926 --> 00:12:27.576 Um, okay, so how do, before we go to break here, glenn? 00:12:27.576 --> 00:12:31.426 Um, how is new money created? 00:12:31.426 --> 00:12:39.352 Because we often times think about the old printing press is just Zipping out new hundred dollar bills or just a dollar bill, yeah, but there's another way. 00:12:39.734 --> 00:12:41.519 Yeah, so there's a printing press. 00:12:41.519 --> 00:12:43.265 There's the computer on the keyboard. 00:12:43.326 --> 00:12:44.068 It's, that's a zero. 00:12:45.620 --> 00:12:46.985 The Federal Reserve level. 00:12:46.985 --> 00:12:49.432 The other way is through the banking system. 00:12:49.432 --> 00:12:52.707 The banking system actually creates a tremendous amount of new money. 00:12:52.707 --> 00:13:00.488 And so let's go back to that example of $100 gets deposited, take 90 of it and loan it back out. 00:13:00.488 --> 00:13:13.373 Okay, that person takes the 90, you know, deposits, loan that back out, and continue, and so forth and so forth, and then all of a sudden, now you have all these Dollars that were created off of that original dollar and so it actually creates money. 00:13:13.373 --> 00:13:20.600 By that process, by the fractional lending process itself, they

can create new money out of kind of just thin air. 00:13:20.600 --> 00:13:22.889 Yeah, so it's actually. 00:13:22.889 --> 00:13:28.567 I never knew that until a couple years ago and I was like, wow, that's fascinating, banks actually create money. 00:13:28.969 --> 00:13:33.403 Yeah, they're the ones that do it through the commercial Lending, through the lending process. 00:13:33.604 --> 00:13:50.259 Yeah, yeah, just they can do it through consumers, commercial mortgages, you know, whatever they want to do, because when they get that deposit back in after they done loan now comes back on their balance sheet as a positive and they can loan that back out and then, you know, more gets added. 00:13:50.259 --> 00:14:00.508 So it's just this ongoing process of where they, you know, started with $100, but then towards the end maybe they have $175 because a bunch of how many times they love and you multiply that by. 00:14:00.607 --> 00:14:05.143 You mentioned all the banks that are in this country and Every in every community. 00:14:06.044 --> 00:14:08.048 Of course, it's not just your banks. 00:14:08.048 --> 00:14:09.852 You got credit unions, things like that. 00:14:09.852 --> 00:14:12.166 Yep, yeah, all really the same. 00:14:12.166 --> 00:14:13.140 I. 00:14:13.140 --> 00:14:16.807 Another topic we should probably do another time, glenn, would be the. 00:14:16.807 --> 00:14:19.754 You know how there's been a push for essential bank digital currency. 00:14:19.754 --> 00:14:26.549 Would that take out the commercial banks from creating this process and, you know, creating money, I guess, out of thin air? 00:14:26.549 --> 00:14:27.681 And then then it's the. 00:14:27.681 --> 00:14:30.711 The federal's, the feds, just do it directly all the time. 00:14:30.711 --> 00:14:31.770 Just food for thought. 00:14:31.770 --> 00:14:34.615 I mean it's yeah, yeah, because there's definitely a push for that right now. 00:14:35.042 --> 00:14:43.009 Yeah, if you change the dynamics of the fractional lending system, it'll definitely Make less dollars out of created in that process. 00:14:43.009 --> 00:14:51.990 So yeah, if the federal government says you know we're gonna have the Fed dollar or the Fed coin, whatever it may be, and that's the only way you can loan out, we'll just do all the loans. 00:14:51.990 --> 00:14:55.043 That seems Really not up there, alley. 00:14:55.043 --> 00:14:56.206 Yeah, this is a big task. 00:14:56.206 --> 00:14:58.412 I would want to take on all the loans. 00:14:59.302 --> 00:15:00.408 Another topic for another day. 00:15:00.408 --> 00:15:12.346 Well, let's get into, when we come back, some of the other services that the banks actually offer the guardrails, I guess, the supposed banking regulations and all that that's supposed to protect everybody out there. 00:15:12.346 --> 00:15:14.751 And you're listening to intelligent investing with Glenn. 00:15:14.751 --> 00:15:19.812 Least Give Glenn a call 928 225 24 74. 00:15:19.812 --> 00:15:22.860 That's 928 225 24 74. 00:15:22.860 --> 00:15:27.686 And you can also email Intelligent investing at WT wealth management. 00:15:27.686 --> 00:15:28.226 Don't go anywhere. 00:15:28.226 --> 00:15:30.009 We got a lot more to come back in just a few minutes. 00:15:30.009 --> 00:15:38.386 You're listening to intelligent investing with Glenn. 00:15:38.386 --> 00:15:43.419 Least give Glenn a call right now at 928 225 24 74. 00:15:43.419 --> 00:15:46.884 That's 928 225 24 74. 00:15:46.884 --> 00:15:49.768 More intelligent investing with Glenn, least when we come back. 00:15:49.768 --> 00:16:15.754 Welcome back. 00:16:15.774 --> 00:16:18.839 You're listening to Intelligent Investing with Glenn Least. 00:16:18.839 --> 00:16:24.173 We've got a call at 928-225-2474. 00:16:24.173 --> 00:16:28.182 Also, email Intelligent Investing at WTWealthManagementcom. 00:16:28.182 --> 00:16:30.288 We're talking about the banking system. 00:16:30.288 --> 00:16:39.409 Next week we'll get into the Federal Reserve a bit more, but before we move on, glenn, we'll talk about some of the guardrails that are supposed to be there with banking regulations. 00:16:39.409 --> 00:16:43.000 What other things do we get from the banks? 00:16:43.000 --> 00:16:44.365 What are the services? 00:16:44.365 --> 00:16:47.332 Just got to round out the whole topic. 00:16:47.373 --> 00:16:48.696 Yeah, banks offer credit cards. 00:16:48.696 --> 00:16:52.070 They offer mortgages, investments most banks do. 00:16:52.070 --> 00:16:56.798 They also, in addition to that, do payment processing. 00:16:56.798 --> 00:17:00.293 So you've got your debit card or credit card, you swipe it at Starbucks. 00:17:00.293 --> 00:17:03.246 Starbucks says charge $10. 00:17:03.246 --> 00:17:04.710 It goes to the bank electronically. 00:17:04.710 --> 00:17:07.057 You have the funds, are there, process it through. 00:17:07.057 --> 00:17:21.237 So they facilitate the sending of money electronically back and forth, and then even checks as well, the same thing, and so that's the other thing that they do in addition to what we talked about is not just the loans, the deposits is some of the other ancillary services. 00:17:21.285 --> 00:17:22.126 You still write checks. 00:17:22.126 --> 00:17:24.912 I still have checkbooks, you still do? 00:17:24.912 --> 00:17:27.336 Yeah, I find their use. 00:17:27.336 --> 00:17:30.230 Occasionally my wife says we have one somewhere. 00:17:30.230 --> 00:17:38.019 One singular check Just in case they make a lot of money on those fees on those debit and credit card transactions. 00:17:38.019 --> 00:17:39.727 We don't think a lot of people realize that. 00:17:40.028 --> 00:17:44.018 Yeah, and some of them are 2%-ish. 00:17:44.018 --> 00:17:54.770 This can be as high as 3% for some credit cards, and evidence by if you've ever had a credit card and you do a cash advance or whatever, they charge you that 3% or 4% upfront. 00:17:54.770 --> 00:17:59.490 The other times, when you're using your card, you

may not see that 3% charge. 00:17:59.490 --> 00:18:04.431 It's because the merchant is absorbing that and raising their prices accordingly. 00:18:04.431 --> 00:18:07.085 So, yeah, the banks are definitely making money on the transactions. 00:18:07.085 --> 00:18:10.473 I mean, visa and Mastercard are just absolutely monstrous, right, can it? 00:18:10.554 --> 00:18:12.903 in yeah, yeah, and everything's really a little bit more. 00:18:12.903 --> 00:18:15.178 2%, 3% more, if you think about it. 00:18:15.178 --> 00:18:18.180 Yeah, because everybody uses that card, even nowadays, for a couple of coffee. 00:18:18.180 --> 00:18:18.701 It's hard. 00:18:18.701 --> 00:18:21.597 You rarely see people whipping out some change or a couple of dollars. 00:18:21.699 --> 00:18:26.394 Yeah, it's why you see those signs where it's like if your purchase is less than $5, we're going to attack on 50 cents. 00:18:26.394 --> 00:18:34.839 Yeah, it's because of the minimum transaction fees that they incur, like if you just buy a pack of bubblegum with your debit card, they get a little annoyed. 00:18:34.839 --> 00:18:34.940 Yeah. 00:18:34.960 --> 00:18:40.326 Probably losing money because there's like a there's that minimum fee, like you said and then cuts into their profit margin. 00:18:40.326 --> 00:18:42.191 Yeah, Exactly Okay. 00:18:42.191 --> 00:18:52.717 So the guardrails and banking regulations and a lot of us, a lot of people listening, are familiar with 2008 and how the system really failed. 00:18:52.717 --> 00:19:03.769 So there's supposed to be regulations out there that protect people from the failures and bad doings of banks If they get into trouble and invest in things, and they're not not supposed to talk about that a bit. 00:19:04.150 --> 00:19:12.297 Yeah, so one of the other jobs of the Federal Reserve is to oversee the banking system and make sure it's uh there's stability in it. 00:19:12.297 --> 00:19:23.356 And so the Federal Reserve implements a number of um criteria that the banks need to meet Um, and one of them is their capital requirements. 00:19:23.356 --> 00:19:26.107 So the minimum amount they need to have is that buffer. 00:19:26.107 --> 00:19:33.079 They'll say, okay, here's the amount of money you need to keep in case that you incur a loss on your investments, that sort of thing Um. 00:19:33.079 --> 00:19:53.858 And then, additionally, on top of that, it's liquidity requirements Um, how much you actually have liquid available to make the deposits Um, because you can have, say, 10% available um for withdrawals, uh, of your total assets, but you only need liquidity of, say, 5%, because the other 5% is just sitting there as a buffer or whatever the case may be. 00:19:53.858 --> 00:19:56.228 So you've got your liquidity requirements. 00:19:56.407 --> 00:20:02.548 And then they also the Federal Reserve, manage overseas banks and does a lot of risk management. 00:20:02.548 --> 00:20:15.808 So they look at what they're doing with those deposits that come in and say are you being overly risky and are you um being prudent with some of these, the dollars that are deposited in? 00:20:15.808 --> 00:20:24.101 And if they're too risky or they're overextended or they've been over lending, they will definitely, um, impose changes. 00:20:24.101 --> 00:20:27.953 You know, say, hey, you're required to make these changes to your system. 00:20:27.953 --> 00:20:34.157 Um, and I think maybe in the last couple of years they've been more friends to the bank. 00:20:34.157 --> 00:20:44.193 You know, federal Reserve was like all kind of buddy buddy with a lot of the big banks and banking systems, but in reality they're the overseers, they're the you know, the supervisor, if you will, the boss. 00:20:44.193 --> 00:20:46.209 And so times they got to. 00:20:46.209 --> 00:20:50.809 You know, take action, say we have to make a change here, otherwise it's going to be a big problem. 00:20:51.164 --> 00:20:57.337 And sometimes I miss it and then, but then sometimes, silicon Valley bank, which you mentioned, glenn, they actually had to go in and say we're taking over. 00:20:57.961 --> 00:20:58.683 Yeah, yeah. 00:20:58.683 --> 00:21:10.210 So I mean by by by the Federal Reserve not enforcing their policies more strictly, which is, I think, what was kind of happening a little bit. 00:21:10.210 --> 00:21:11.703 It just made it. 00:21:11.703 --> 00:21:18.569 So when banks run into trouble, the trouble is magnified, yeah, yeah, because they're already kind of in a predicament, if you will. 00:21:18.569 --> 00:21:21.686 So, yes, those are some of the things the Federal Reserve is. 00:21:21.686 --> 00:21:28.147 You know, monitoring their risk, monitoring their liquidity, you know monitoring their Reserve requirements. 00:21:28.147 --> 00:21:29.692 And are they actually cash on hand? 00:21:29.692 --> 00:21:31.599 What are they doing with their deposits? 00:21:31.599 --> 00:21:37.425 Are they buying treasury bonds or are they buying Stock and some tech startup company? 00:21:37.465 --> 00:21:38.990 Yeah, kind of make up the logic. 00:21:39.461 --> 00:21:45.278 Yeah, so SBB was actually interesting because their loans were primarily to startup companies. 00:21:45.278 --> 00:21:54.006 In fact, I think all about 50% of all startups in United States got their funding from SBB, so that was like their bread and butter, wow. 00:21:54.006 --> 00:21:55.347 And startups are risky. 00:21:55.347 --> 00:22:01.859 Yeah, hopefully get your money back, but there's a chance it goes under and business fails and you know they default on the loan. 00:22:02.141 --> 00:22:08.844 So ramifications of that might be felt for a while as far as startups who were expecting money, or Maybe they're still doing it. 00:22:08.844 --> 00:22:09.987 They're still in existence. 00:22:09.987 --> 00:22:17.011 The feds have just taken them over, but I wonder if that spigot kind of was cut off as far as funding for a lot of startup companies going forward.

00:22:17.292 --> 00:22:17.593 Yeah. 00:22:17.593 --> 00:22:31.713 So I think a lot of the banks Looked at that scenario and might get a little bit more gun-shy, yeah, as far as making riskier loans, and just be a little bit more prudent, because they didn't want to have what happened. 00:22:31.713 --> 00:22:43.987 Svb happened to them and each, each, each bank in or has their amount that you can look it up, like how much they have for reserve requirements, how much they lending out, how much you know, yada, yada, yada. 00:22:43.987 --> 00:22:46.573 And some banks are a lot stronger than others. 00:22:46.573 --> 00:22:49.000 The big banks are, and you know they're in good shape. 00:22:49.000 --> 00:22:54.416 Svb was just was, it was pushing it to the absolute max. 00:22:54.457 --> 00:23:04.164 And then some yeah, I'm, the other thing I was gonna say the Federal Reserve does is the, the FDIC Insurance, and so that's the 250, you know, deposit insurance. 00:23:04.164 --> 00:23:09.002 So that way, if the bank goes under, yet the you know Federal Reserve's basically saying, hey, we'll back that. 00:23:09.002 --> 00:23:15.763 You know account for up to $250,000, and so FDIC, yeah, yeah, yeah, yeah. 00:23:15.763 --> 00:23:20.788 So you know that gives people more, more confidence in the banking system. 00:23:20.788 --> 00:23:27.400 And you imagine if you went in to go deposit your money and they're like, well, if we make it, we make it, if we don't, you're out of luck. 00:23:27.400 --> 00:23:33.243 You're gonna say I'm not gonna deposit a bunch of money with you and you could go under and I have no control over that and I lose all my money. 00:23:33.243 --> 00:23:42.900 But if they have the FDIC guarantee, at least there's a backstop where you can limit some of those losses and as long as you don't have over the threshold you know it's reasonably. 00:23:44.703 --> 00:23:59.679 The reasonable assumption is if the bank goes under, that you'll be just fine, you'll get your deposits back alright, a lot on banking and I always encourage and you do Glenn as well to Subscribe to the podcast because you might want to listen back and catch something that. 00:23:59.679 --> 00:24:00.501 What wait, what was that? 00:24:00.501 --> 00:24:03.029 Yeah, you've got a lot of episodes up there now. 00:24:03.029 --> 00:24:07.712 Look up intelligent investing on just about any podcast provider out there. 00:24:07.712 --> 00:24:14.788 Yeah, also, if you want to talk with Glenn, I'm always willing to have that conversation about your individual situation. 00:24:14.788 --> 00:24:18.474 Call Glenn least that intelligent or at WT wealth management. 00:24:18.474 --> 00:24:23.814 Yeah, my, my things mixed up here at 928 225 24 74. 00:24:23.814 --> 00:24:32.213 That's 928 225 24 74 or email intelligent investing at WT wealth managementcom. 00:24:32.213 --> 00:24:35.064 So next week let's get into the Federal Reserve. 00:24:35.345 --> 00:24:41.039 Yeah, we talked a lot about today, yeah, so I think the next logical step is talking about what they do. 00:24:41.381 --> 00:24:43.446 Yeah, probably some history there as well. 00:24:43.446 --> 00:24:44.810 Yeah, a lot of stuff for you. 00:24:44.810 --> 00:24:47.025 Okay, everybody, have a great day. 00:24:47.025 --> 00:24:48.864 We'll see you soon. 00:24:48.864 --> 00:25:04.076 The following has been paid programming brought to you by WT wealth management. 00:25:04.076 --> 00:25:09.346 Nothing we've discussed should be considered as investment advice, as Conversation was for informational purposes only. 00:25:09.346 --> 00:25:15.123 Please do your own research and speak to an investment advisor, financial planner, before making any investment decisions.