Morning Market Download from Invincible Money

Personal finance + economics + markets

Staying on top of the markets, economics and the global issues that affect your money takes a lot of time and effort. We distill it down to a quick 5 minute read to help you make better money decisions.

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Q1 is over and Q2 starts today. Regional banks are having a tough time as capital continues to flow toward the larger banks due to fears of collapse, low interest rates and people attracted to higher yielding money market funds. Banks are using the new lending facility called the Bank Term Funding Program (BTFP) and have borrowed $65 billion last week.

EconomyChina and Brazil are the latest countries who are trying to get away from using the U.S. dollar as they agreed to trade only in their currencies, without exchanging first into U.S. dollars first. Brazil says it will reduce costs and "facilitate investment," while China is looking to expand their economy. China has made similar deals recently with other countries.

I'll be doing a deeper dive into this on my YouTube channel, so please go subscribe if you want to learn more.

GDI fell by 1.1% in the fourth quarter. GDI is Gross Domestic Income, the income generated and the costs associated with producing goods and services.Corporate profits fell by 2%, the most in 2 years as companies deal with rising input costs, borrowing costs and weaker demand.

Job market is still fairly good, even as jobless claims were a bit higher last week - 198,250 vs. 196,000 expected. Recall that the Fed wants unemployment to rise to show the economy is cooling off.

Sec. Yellen said that their efforts to support the U.S. financial system are incomplete. Doh! Maybe that's why people continue to pull money out of banks.

European core inflation is up to a record 5.7% for March, despite a drop in headline inflation (8.5% to 6.9%). Core inflation doesn't include food or energy.

China is bouncing back as its service sector reported its highest activity level in 10 years.NewsNetflix announced they will be making fewer movies to focus on quality.

A second round of tech leaders complained to the FTC that ChatGPT is growing too fast, after 1,000 of them wrote a letter, led by Elon Musk, warning of the dangers of AI.

StocksUS Stocks and global tech stocks were upgraded to overweight by Citigroup while downgrading European stocks to neutral. An overweight rating means the bank feels those stocks will do better than it's peers or index in the future.The Big Short Was WrongTwo months ago, Michael Bury, of The Big Short Fame (my favorite movie) tweeted one word "Sell." No explanation. Over the weekend, he seems to have admitted he was wrong. Another reminder to do your own research and thinking and not just follow the "experts," even if they have had some big wins.

CryptoBitcoin is up 69% YTD.Ethereum is up 49%.

SBF pleaded not guilty to 5 new federal charges for a grande total of 13. He's still not in jail for defrauding his investors. Read them here.

US Space Force stated the U.S. should support Bitcoin or risk losing status as the global superpower.

Barney Frank (of Dodd-Frank fame) said he thought the FDIC's seizure of Signature Bank was motivated by their not liking crypto. Later, the bank taking over assets from Signature, Flagstar Bank, said it would assume all bank deposits from Signature except those from crypto companies.Our suspicions have been confirmed!

Challenge to Operation Chokepoint 2.0One of the most influential banks in DC, Cooper & Kirk, who once challenged the Obama administration's Operation Chokepoint in 2013 just published this report addressed to the U.S. Congress. The report states that Operation Chokepoint 2.0 unfairly stigmatizes the crypto industry by “labeling crypto businesses a threat to the financial system, a source of fraud and misinformation, and a risk to bank liquidity”.

They said that regulators are overstepping their authority by going after banks service the crypto industry while not explaining their decisions.

SEC Chair Gensler is scheduled to testify on April 18th before the House Financial Services Committee to answer questions about the SECs appoa

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Legal StuffNothing in this newsletter is financial advice. Always do your own research and think for yourself.