Publisher's Note: If you want to survive the stock market in 2024, you need to understand this dark secret about Wall Street and Big Business... and few people have seen "how the sausage gets made" like our friend Joel Litman. A forensic accountant by trade, Joel has sounded the alarm on dozens of companies before they collapsed – now, he's doing it all over again... in advance of one of the most dangerous years in financial history...
The Untold Story of 2023's Bank CollapsesThis week, Marc Chaikin and I revealed the exact steps you must take before January 1 if you don't want to get blindsided by more stock market losses in 2024. One of the points I hammer home repeatedly is just how many ways Wall Street sets us up to fail. I'm NOT exaggerating when I say this... Wall Street's rules are often not only contradictory and flat-out wrong, they're DESIGNED that way to benefit Wall Street at YOUR expense. Let me show you a recent example... It's one many folks have already forgotten about or chosen to chalk up to "bad luck," rather than screaming a red flag of the worsening situation on Wall Street. Of course, I'm talking about this spring's bank collapses – some of the worst in American history. Who could have foreseen them? Well, the government sure did... Despite their assurances that the U.S. banking system was secure, they knew what was coming – they just smartly didn't want panic or more bank runs. But here's a dirty little secret of how bank failures work: Due to a massive loophole in banking policy, the FDIC legally can't prevent a bank collapse... they can only cover a bank when it's already failed. Naturally, this creates a system of perverse incentives... Potential buyers of a troubled bank have every reason to wait until it fails rather than step in and try to save it. And that's exactly what we saw this past spring... JPMorgan could have saved First Republic Bank weeks before it collapsed – but by doing so, it would've shouldered the burden of First Republic's debts. Instead, JPMorgan waited until First Republic collapsed for a few key reasons: - First, the FDIC would absorb First Republic's losses...
- Then it would pay JPMorgan $13 billion to take over First Republic (funded by the taxpayer, of course)...
- And this doesn't even include the $92 billion in new assets JPMorgan got out of the deal in the first place!
Great day for JPMorgan, right? Never mind the cost to taxpayers... the hit to our economy... or the fact First Republic shareholders got wiped out. Do you see how our system is set up to encourage failure and instability? Wall Street is FULL of massive loopholes like this. Some of it's due to oversight... some of it's intentional... but at the end of the day, ALL of it benefits the big dogs on Wall Street – NOT you. YOU have to look out for yourself... especially when you understand everything Marc and I see coming in the early days of 2024. Here's what you need to do BEFORE January 1. Regards, Joel Litman
Chief Investment Strategist, Altimetry P.S. Did you know the Fed found 722 banks at risk of default on February 14... a full MONTH before we saw three of the worst bank failures in American history? 31 of those banks were in such bad shape that Uncle Sam immediately cut them off from borrowing any more federal money! Yet the Fed was still telling us everything was fine... right up to the moment banks started failing. Sound familiar? Again, I'm just being honest about what we're dealing with. Here are the actions I'm recommending all readers take immediately. | 
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