The Game is Rigged – Here's How to Win Anyway

It's one thing for Wall Street to rig the financial game. It's another to do it out in the open, right under our noses. Today, I'll tell you what going on, and I'll explain why our response shouldn't be to get mad... It should be to get rich instead. [mbd-thumbnail] CLICK HERE TO LAUNCH VIDEO […] You’re receiving this email as part of your subscription to Andrew Zatlin’s Moneyball Daily [Unsubscribe]( [Moneyball Daily] The Game is Rigged – Here's How to Win Anyway May 02, 2023 It's one thing for Wall Street to rig the financial game. It's another to do it out in the open, right under our noses. Today, I'll tell you what's going on, and I'll explain why our response shouldn't be to get mad... It should be to get rich instead. [CLICK HERE TO LAUNCH VIDEO OR READ THE FULL TRANSCRIPT BELOW »»]( ADVERTISEMENT Shocking true story about a beverage manager... A guy named Hal K. spent 30 years with Coke... including roles in general and revenue management, strategy, operations, marketing, and sales. It turns out, Hal figured out an investing secret. He discovered a special way to increase the value of his shares from $39,000 into $627,260. Hal did NOT use day trading, options, leverage or anything complicated. And the crazy part? Anyone could've gotten in with Hal for the chance at the same 1,588% returns. In this short message, Whitney reveals his "blueprint" to show his readers how they could profit from this opportunity. [To get the "blueprint" for 10x gains, go here now](. For a transcript of this video, see below. This transcript has been lightly edited for length and clarity. The Game is Rigged – Here's How to Win Anyway In case you missed it, JPMorgan (JPM) just acquired First Republic Bank. The deal involved a big bank scooping up a much smaller competitor. And it was 100% rigged by the federal government. At first blush, that suggestion might make you mad. And while that feeling is valid, I suggest we focus on getting even instead. Because this deal is about to spark a wave of acquisitions in the banking sector... And I'll tell you how to get positioned to profit from the next one. A Match Made in Heaven We'll talk more about our profit opportunity a bit later. But first, let's explore the deal between JPMorgan and First Republic. Simply put, this was a match made in heaven. First Republic needed cash – that's why it went bankrupt – and JPMorgan had too much cash on hand. Let's focus on JPMorgan's situation for a moment, because it's key to understanding what I mean when I say that the game is rigged. Every day, JPMorgan collects a certain amount of deposits, and it lends a certain amount to borrowers. Right now, it has $2.4 trillion in deposits, yet it's only loaned out $1.1 trillion. Is this normal? Far from it... All This Cash and Nowhere to Spend It Actually, it's unprecedented. Let me show you: This chart shows JPMorgan's deposits going back seven years. As you can see, between 2016 and 2019, the bank took in about $1.5 trillion in deposits a year and loaned out about $1 trillion. Then COVID hit. Soon after, the Federal Reserve initiated what's known as quantitative easing ("QE") – basically an effort to help stimulate a stagnant economy. And as a result, big banks like Bank of America (BAC), Wells Fargo (WFC), and JPMorgan received a wave of extra deposits. The thing is, those deposits just sat on these companies' books. The money wasn't available to be lent out. And it created a problem for JPM... Until interest rates started soaring... Pure Profits When interest rates went up, suddenly the cash in JPMorgan's account became much more valuable. For example, at 5%, that $1 trillion that can't be touched is earning $50 billion a year in interest. That's pure profit JPMorgan is collecting from money that's sitting there. The same thing happened at other big banks, too. Suddenly, the money that was untouchable was making these banks even richer, all thanks to increased interest rates issued by the Fed. Are you getting the sense that this game is rigged? It gets worse... An Offer It Couldn't Refuse You might wonder why JPMorgan decided to purchase First Republic. After all, the bank was small and had just gone bankrupt. As it happens, JPMorgan was made an offer it couldn't refuse. Playing the role of Marlon Brando in "The Godfather," the Federal Reserve invited JPMorgan to bid on First Republic. It said, "We made you rich. Now you have to spend these riches the way we want you to." But in case you feel bad for JPMorgan in this scenario, dry those tears. Because remember, the entire game is rigged in their favor... A Sweet Deal JPMorgan got a sweet deal to acquire First Republic. Notably, any loans that it will take over from First Republic will be covered by the Federal Deposit Insurance Corporation ("FDIC"). And any losses will be covered by the government – aka, taxpayers like you and me! And keep in mind that First Republic was a unique bank. It was deep into the cryptocurrency sector and had several high-tech, high-net-worth clients. Now JPMorgan has access to them and can grow its business even further. So, what happens now? I think we're going to see a big wave of mergers when it comes to smaller banks. After all, JPMorgan's big competitors are in similar situations. They've got excess cash and incentives to do a deal. The thing we need to focus on is how to make money from all of this. For 'Pro' Eyes Only It's an intriguing situation. Do we invest in JPMorgan? Do we target a handful of smaller banks that might get scooped up? If you're a Moneyball "Pro" subscriber, I'll tell you the exact move you should make today. We're in it to win it. Zatlin out. FOR MONEYBALL PRO READERS ONLY > [LEARN MORE]( < In it to win it, [Andrew Zatlin] Andrew Zatlin Moneyball Economics Copyright 2023 © Moneyball Economics, All rights reserved. You signed up on []( Our mailing address is: Moneyball Economics 1125 N. Charles Street Baltimore, Maryland 21201 [Update Subscription Preferences]( |Unsubscribe from this list| [Terms & Privacy]( RISK NOTICE: All investing comes with risk. That includes the investments teased in this letter. You should never invest more than you can afford to lose. Please use this research for the purpose that it's intended — as research only. You should consult a professional financial advisor before ever taking a position in any securities you see herein. DISCLAIMERS: The work included in this communication is based on diverse sources including SEC filings, current events, interviews, corporate press releases, and information published on funding platforms, but the views we express and the conclusions we reach are our own. As such, this content may contain errors, and any investments described in this content should be made only after reviewing the filings and/or financial statements of the company, and only after consulting with your investment advisor. Actual results may differ significantly from the results described herein. Furthermore, nothing published by Moneyball Economics, Inc should be considered personalized financial advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investment advice. Moneyball Economics is an independent provider of education, information and research on publicly traded companies, and as such, it accepts no direct or indirect compensation from any companies or third parties mentioned in any of our letters, reports or updates