The secretary of state made a series of unusual phone calls about the nations banks and credit. Can liquidity be a problem in the near future? Watch and listen to this episode's market insights to find out.
Mnuchin's Mystery Phone Calls Signal Disaster- Video Transcription
Coy Wells: 00:01
Several days ago, secretary of Treasury, Steve Mnuchin, left many Wall Street insiders scratching their heads Sunday after he made a series of unusual phone calls that led to a weird statement about how the nations largest six banks have now enough credit to extend businesses and households. That could be seen as a bland vote of confidence as the economy after the worst sell off of us markets in more than a decade. But the problem is that no one can quite figure out why Mnuchin answered a question that no one seems to be asking. As Bloomberg put it simply, liquidity was not seen as a problem in the economy. Now and some wonder whether the phone call is a signal, that in fact, could become a problem in the near future. That's one of the reasons why 2008 was so impactful and if the treasury secretary is now calling banks and asking questions, whether they have enough liquidity, it is a problem.
Coy Wells: 00:53
You don't see the government, you don't see the secretary of Treasury reaching out to the six largest banks inside the United States and start asking questions about whether they have enough liquidity. In 2008 we saw Lehman brothers collapse, and at the same time we saw gold take off. At that point in time, gold was around $780 and before it ended in 2011 around November, it peaked around $1,900 an ounce. For individuals who understand the impact of how bad 2008 was, we're now talking about the secretary of Treasury talking about a crisis that could be much larger when he's talking to the top six banks. So please call the number on the screen to get your copy of the brand new report, the 25 reasons to own gold, and it is completely updated with the facts for 2019. I'm coy wells, and thank you for watching us money reserve's market insights.