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If there's one thing that's in shortage, it's bailouts. The banking system is definitely in need of some more as we witness a slow and steady misallocation of capital occurring. Money is flowing from individual savers and taxpayers, and it's finding its way into the hands of the elite. Countries and companies find themselves in turmoil.
Then the consolidation of wealth occurs. You came here for the truth. Today we are going to look at two important topics. One being Warren Buffett bailing out home capital and the other is the absolute bloodbath that is occurring in retail. Let's get into it. First beginning with home capital. A surprise injection of capital from the world's most famous investor appears to have marked a major turning point in the embattled mortgage lender Home Capital Group.
So essentially what this was was what they call an alternative mortgage lender. So if you're an individual who couldn't get debt through normal means, this company would do that for you. And that's sort of akin to what we experienced during the subprime crisis. They were giving out loans to people who shouldn't have had them in the first place.
Then a snowball effect occurred because the weakness, the cracks began to appear and people started pulling their money out and then the stock started dropping and that makes people pull their money out even more and the stock drop even more. So here they are. Warren Buffett's Birkshshire Hathaway said it's going to acquire $400 million of the Toronto-based company that gives it a 38% stake and the reason I mention this at a steep discount.
So they're also going to provide two billion line of credit. Okay. The reason I mention this is because people follow Warren Buffett or any of these other individuals, billionaires, for what they do, but they don't understand that a guy like Warren Buffett doesn't get the same deal that you and I do.
So maybe it wouldn't be a good idea to invest in home capital if it wasn't at the price that Warren Buffett's getting it at. That's the point I'm trying to make. You have to understand the sweetheart deals are not for you and I. And suddenly the valuations are very different. The reason they use Warren Buffett is because he can be in his own realm, the billionaire world.
the 0.1% or whatever you want to call them to be able to consolidate power. The government doesn't want to own Home Capital Group. They want to have their friends and the people who ultimately are controlling the governments to own everything. That's why the Emiratar owns several islands in Greece. You have corporations that own airports and streets and everything else.
It's a transfer of wealth to those number one that hold assets to begin with, but those that have wealth, you could take it away from the average individual citizen or from the nation, transfer it to the corporations, to the billionaires, to the elite. And one of the things they mentioned here was the lender gets a much cheaper fund.
It's hard to read here, but cheaper funding arrangement. So they're trying to fix the problems of what was happening here, fill in the void. And ultimately because Warren Buffett's behind it, you know that they sat down with the government and with this corporation, they had some meetings and they decided that this company would be allowed to last and that a little bit of money here and there and we'll give you it at a better price.
It's a great thing for Warren Buffett. That's for sure. And if you remember, not too long ago, Warren Buffett bailed out Bank of America. He gave $5 billion to put into the one of the worst performing stocks. But I'm sure there was a sit down with those in the government that said, "We're not going to allow Bank America to fail.
What we will do instead is ask you put $5 billion in. We're going to give you preferred pricing, and then we will make sure that this company gets the bailouts that it needs should it desire it." uh you know in the future you investing into this company is going to reassure the market so investors can continue.
We're going to get our friend Jim Kramer to recommend this stock as well. So don't worry about it. Everything will be fine. And lo and behold, Bank of America didn't need to be nationalized. Now this is also going on in Europe as well. If you remember what I talked about recently, look at this. Look at the link.
We are sorry we're unable to respond to your request at this time. I don't know. I'm going to check this again at a later date. I brought to you the spreadsheet that showed you the um all of the companies that the ECB has been has been bailing out. I went back to the site again and this is the message I get.
We're sorry we're unable to respond. It seems like maybe they didn't want to release that information so they were told to take it down. But guess who made a copy? That's right, right here. This is the copy of that spreadsheet, the CSP holdings. And you know, I'm sure that this is somewhere else, but the original link where it was from is now not working at the time of this recording.
So in this, if I can click on it, it's there it is. It's slow to load. But regardless, it's here and it's uh showing up slowly slowly. These are the companies that are involved. They are in alphabetical order based on country. And the whole point is that the entire world, all of the big corporations need to be bailed out.
They can do so by issuing bonds and then the government or the central bank buys the bonds. I don't care what you call that. That's a bailout. Because if you didn't buy those or government didn't buy those bonds, would you? I don't think so. Are you going to buy those century bonds that Argentina issued?
Don't worry. When you reach the year 2117, you can get your money back. Okay, so that's that. I have this here. Um hopefully like the link will be in the description. I don't know if it's going to work. I have a copy here and I hope others uh downloaded it as well. We'll see what happens. Now, RBC, Royal Bank of Canada, cutting 450 jobs primarily from its head offices in the greater Toronto area as it tries to revamp its business in light of shifting client experiences.
All right. New technology. It's talking about here. New technology. What exactly is this new technology? Well, part of one of the things for those who don't know the what's happening here. Part of this is that RBC is entering into a new mode and what they've done is they've cut fees across the board.
And what they've suggested is that if you invest with us, you're going to pay extremely small fees. But there are a lot of mutual fund companies that fees are their bread and butter. That's what they do. but they can't compete with the big boys. They can't compete with RBC who may have much more uh assets under management.
So, as a result, what do they need to do? Well, number one, if you're going to get a lot of people and you're going to reduce your fees, you need to cut from somewhere else because of course, corporate profits always need to increase. So, what do you do? Well, you fire a lot of people and then you introduce new technology.
And what exactly is that new technology? Well, hang on to that thought. I'll show you in a moment. First, I want to show you more of the bloodbath that is occurring. Sears Canada is seeking court protection from his creditors and plans to cut about 2900 positions across Canada. It's closing 59 locations.
And you know, I'm I'm sure they'll just close the whole store. Um the whole company will shut down. Maybe it'll be bought out by other companies that are around. Retail, I feel in many cases, is dying. We can see the trend moving online. That's clear. But I think a lot of companies are not able to really provide what people need.
people are searching for example you see a lot of people a trend anyway it's a small group people going away from the sort of big box stores and they're trying to go towards the mom and pop shops I don't know if that's ultimately going to happen but we see companies like Amazon coming up and destroying everybody in its path there's a lot of different reasons why this is happening but I just see a lot of the companies we've been used to over let's say the past few decades, they will not be around.
That that's just the way it is. And there's many things happening. Like I said, you have the big boys like Amazon coming out and destroying uh a lot of these other companies. But at the same time, you have a lot of people saying, you know what, I don't want to take part in any of this. I'm going to grow my own food.
I'm going to shop at the mom and pop shops. So there's there's like this chasm which is formed. Michael Kors is closing up to 125 stores as sales plummet. This is what would be considered sort of a luxury type brand or they're saying an upscale brand. They expanded too far. I don't know why they did this, but this is the way it is.
And now they have to bring that back. Ultimately, what I'm getting to is that people lose their jobs. There's people who were employed. They're not employed today. So the reason they have um encountered this simply sales are not keeping up. Bed blood bath and beyond misses Q1 estimates store closings are likely here another retailer yet again and this here being robo advisor.
Now, robo advisors are an interesting concept when you go to and I've done this myself many years ago. When I was 14 years old, I had a at that time it was a big sum of money for me. It was I think it was about $800 and I invested in a mutual fund based on the recommendation from none other than my parents.
But at that time I I thought it was just had so much money. Put it in the um in the bank and they put it in a I think it was called a dividend fund and so it invested in banks mostly. So here they are providing myself with hopefully down the road income. Anyway, just to give you a little tidbit, I ended up selling that for gold at a later date.
What we have here is a typical conversation with the financial adviser. You tell him your risks. You tell him how long you want to keep that in for. And here we go. They recommend something for you. What has been disclosed in more recent past is that we see that the recommendations don't really have anything to do with your risk assessment and everything else.
It's ultimately uh incentive based. Doesn't matter. Now what they'll have is robo advisor. So you just go on the internet, you go to the site, you click a few buttons and they make a recommendation. It's really no different in a way. The only difference is it loses that individual. So you no longer need to go to the bank to speak to the customer service representative who will make an appointment for you to see a financial adviser.
Then you go to the financial adviser, there he is. No, you don't need to do any of that. You just go to the website which is they pay a technology person setting up that website and that's it. It's just onetime thing. They don't have to do anything to it after that other than maintenance or what have you.
But that becomes your new advisor. A lot of jobs will be lost. I don't think that there's even a need for this. We shouldn't be investing in these to begin with, but this is the way it is. And last but not least, McDonald's new bank ATM requires zero human interaction. So where do you get your fast food?
Well, if you're part of the new trend, you're going to get it from an ATM, a vending machine essentially that an individual will supply with food and you tap on these uh big screens and you out comes your food. There it is. The new evolution, less human interaction, more robotics, more automation and ultimately what I see coming is uh the possible scenario for a guaranteed universal basic income that will be just enough to keep you under the poverty line so that you become subservient to those above.
If you found this video informative, then please support me by giving a thumbs up. And if you found the video informative, then you'll find my books, The Money GPS and my new release, Global Economic Collapse, even more informative. The first book is more about the four asset classes and how to profit from it.
It's also longer, more detailed. The new book touches on those familiar subjects, but I get into something that I didn't in the first book, and that is how to become self-sufficient, reducing your monthly expenses in what I call the money GPS strategy. So, they're both different in their own ways. It's not really a continuation.
So, check those out at Amazon. They have a look inside feature. You can flip through them. And also wanted to note that what I have been doing is YouTube has a feature where it creates a transcript of this video. I take that and I'm downloading it and then putting that into a big text block and no editing or whatever.
It's just one big sentence essentially. Taking that and I unfortunately I can't put that on YouTube because they will definitely ban me. What I'm doing is I'm putting that on the Steemit post. So, every time I post to YouTube, I'm also posting the exact same thing on Steemit. And for those who don't know, Steemit's like a social media, another social media.
And from there, in the description of that, you'll see the transcript. And the reason I mention this is because it's great to bring uh people in um when you're searching online or whatever. It's better for that, but also for individuals who have hearing impairment or any sort of uh issue with hearing and maybe they want to read instead.
Maybe they're not really interested in hearing my voice. So, they can instead read the transcript. So, it's actually it's fairly accurate. So, you can see that there. If you're interested want Steemit at all, then definitely check the links in the description. That's all. Take care.
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