Private Credit Bloodbath - Loan Leverage Failure

If an experiment in private enterprise is unsuccessful, people lose money and they have to close it down. If an experiment in government is unsuccessful, it's always expanded. The private credit bloodbath continues and today we're going to take you guys through several data points that's really going to paint the picture of just how bad the situation is by comparing Lehman Brothers to our entire economy. Our entire economy is facing turmoil like the Lehman Brothers did right before they collapsed. In our ending segment, we're going to talk specifically and in thorough detail about what you can do to protect yourself from this overwhelming economic turmoil. But one thing I want to get straight is Milton Friedman left out banks. Banks also make massive mistakes and they get bailed out. So if we're talking about who really controls our country, is it we the people or is it the banks? And look at the Federal Reserve. The people don't have the Federal Reserve. The banks have the Federal Reserve. And right now, you guys, the Federal Reserve, as you guys can see on the upper left, has $6.7 trillion of our assets. It can literally pay for property taxes probably the rest of our lives. And another thing I want to tell you guys is they have been purchasing our assets again ever since December 3rd, 2025. You guys can see that on your screen. They've increased their holdings from $6.5 trillion to roughly $6.7 trillion, meaning they charged and purchased another $200 billion. This is the savior of the banks. Now, keep in mind, I'm not saying that the government doesn't have a spending problem because as you guys can see here, they clearly have a spending problem as our deficit is exactly the same so far this year as it was last year. How is that even possible with all of the employment layoffs or the federal layoffs, the doge, the tariffs, how do we have the same deficit? Look at you guys. It's actually down $8 billion, but we're almost at $2 trillion, which is almost three times the total amount of property tax. And by the way, it's you and I that have to pay that back. And also, did you guys know that they're already lending money to banks that are in distress? Take a look at the reverse repo market and the end of September. September 29th, they issued $11.4 billion. And then September 30th, another $11.5 billion. They issued $23 billion to lenders in the last week. And when it comes to the companies of private credit, they're probably going to need some of that bailout because they're about to face bankruptcy as bank runs are accelerating. Take a look at Blue Owl. They had a 39% withdrawal request. Now, each of these private credit lenders has capped the withdrawals at 5%. But again, you can see how many people want their money back. Blue Owl at 39%. Insane. Cliffwater, 16%. Apollo, 14%. Ares, 14%. BlackRock, 13%. They even want out of BlackRock. And here's the thing, you guys. More than likely, those companies don't have their money because they capped it. They said, all you guys can do is request 5%, not 39%, because odds are we're going to go bankrupt if we allow that. And even though the Blue Owl's talk is being gutted, they're still saying crazy things like this. The book is strong. We don't see meaningful losses. Really? Then why did you cap all that? And what do the investors see that you don't see? Or is it just that you're lying? We don't see deterioration in performance. And as of the recording of this video, apparently the market doesn't see any advantage in investing in your company as the stock is somehow down 1% today, and it's already in the gutter at $8.97. People don't want to touch Blue Owl. And I wanted to take a blast in the past. I want to remind you guys that Lehman Brothers literally said the exact same things. April 15, 2008, roughly four months after the start, the so-called start of the global financial crisis. This is what Lehman Brothers was saying. The worst is behind us. Oh, really? Lehman Brothers has a great franchise, a strong balance sheet, and capital position. And then I wanted to read this to let you guys know that Lehman Brothers had a way out. Less than a year after they went bankrupt, they could have sold their assets and went out on a historic high. But they stayed in the market. They stayed greedy until it was too late and they had to go bankrupt. In 2007, Lehman underwrote more MBS than any other firm. And MBS is mortgage-backed securities. It's like our mortgages are purchased. Now they accumulated an $85 billion portfolio. That was four times the shareholder's equity. And that was in the fourth quarter of 2007. Again, the start of the global financial crisis. And they could have saved themselves. Lehman stocks rebounded as global equity markets reached new highs and prices for fixed income assets staged a temporary rebound. That was their ticket out. They ignored it and they lost everything. And this is probably a big reason why they lost everything. In 2008, security firms operated with high leverage and significant amounts of short-term debt. Lehman had $26 billion in equity. So kind of like assets, right? Like that's how much the assets are valued at because that's the equity in them. But that's $26 billion in equity supporting $639 billion of assets. That's a roughly 4% leverage. Now let's take a look at 10 reasons why Lehman Brothers went bankrupt. And I want you guys to seriously take a step back and ask yourself, is the same thing happening in the economy today? Now, number one on compensation madness. Lehman's compensation policy was designed in theory to penalize excessive risk-taking. But in practice, Lehman rewarded its employees based upon revenue with minimum attention to risk factors in setting compensation because they just want to make commission. Now they were also fooling themselves. Although Lehman, as you guys see here, conducted stress tests on a monthly basis and reported the results of these stress tests periodically to regulators, just like it's happening right now, and its board of directors, the stress tests excluded Lehman's commercial real estate investments, so like the most risky of investments, its private equity investments, and for a time, its leveraged loan commitments. They left it out. Here's a good one on the lack of self-control. Lehman's management decided to exceed risk limits with respect to Lehman's principal investments. They wanted to keep getting paid. Also, excessive self-confidence. They made decisions based on their understanding of the market and they probably didn't take into consideration really important things like median household income. Number five is really easy on balance sheet trickery. Lehman did not disclose its use or the significant magnitude of its use, kind of like PIK income, on hoodwinking investors with repo 105. I'm just going to read this quote right here. Trying to give the group a great amount of transparency. And this is, again, their CFO. I guess this is their CFO saying this. We're trying to give the group a great amount of transparency on the balance sheets. She reported that Lehman was reducing its leverage through the sale of less liquid asset categories but said nothing about the firm's use of repo 105 transactions. They hid the turmoil. Is that happening today? Number seven on stressless stress tests. Do you guys remember something called Basel III and how they wound back all of those regulations on Basel III, essentially removing the stress from the stress test? Nothing changed from the global financial crisis except things got worse. They asked the Federal Reserve for help and were denied. That's probably a little different than what's happened today because the Federal Reserve seems to bail out everyone except mom and pop. Now, they're also saying on the Fed blindsided by the collapse. Now, here's what Ben Bernanke, the Fed chair at the time, said. I speak for myself and I think I can speak for others that at no time did we say we could save Lehman, but we won't. Our concern was about the financial system and we knew the implications for the greater financial system would be catastrophic, and it was. And here's the news break. It still is. Now, on why the government couldn't save Lehman, the Treasury Secretary at the time believed that the government lacked authority to inject capital into Lehman Brothers. So that's definitely different than what's going on today. And before handing this off to Mitch, I want to look at the global housing boom that has started and has been breaking with peaks down 29% in Canada. And by the way, we're talking about other countries, new homes right now, absolute bloodbath in the US, not existing homes in all areas, but new homes definitely. New Zealand down 27% from peak, China down a whopping 25% and Australia down 5%. So Mitch, my question for you is, can you articulate to the viewers how our economy today is as bad as Lehman Brothers, if not worse? And can you specifically tell us what makes today's economy the same or worse? Exactly, sir. I'm going to use some of the words that Travis brought up to underline exactly how bad this is. So Lehman Brothers filed for Chapter 11 on September 15th, 2008. The US national debt at that time was about 10.2 trillion. We are now 300% greater. That does not include the increase in the derivatives and the off-balance sheet financing. One of the words that Travis said was, well, they were fooling themselves and the banks made mistakes. No, they did not. That is utter nonsense. One event could be a mistake, but pattern of practice is intense. Off-balance sheet financing is a major problem. It was reported just recently that Meta has five times the amount of off-balance sheet financing than it does at the first tier level of its balance sheet. In other words, read the fine print. The $2 trillion of US national debt that we're very close to as we speak right now requires printing of money. That is printing of money to pay the interest. Not $0.10 is being paid down in principle. The scope of this problem as we sit here right now today, just between the cost of the Federal Reserve and the fraudulent school district bonds is in excess of $4.6 billion per day. That's interest carry, of which roughly $689 million is responsible to the school districts. That's the interest carry on the fraudulent outstanding school district bonds. Again, this is money being paid in interest. Not $0.10 is going to principle reduction. With regard to the off-balance sheet financing, the school districts have 313 agreements. They have energy contract financing. The EDCs, the Economic Development Commissions, they have public-private partnerships which manufacture bonds. Well, none of this is transparent to the public, and all of this is off-balance sheet financing. The depth of this problem is not recognized even at the Federal Reserve. One of the reasons why I put that document together for the U.S. Treasury is that if you give me these documents that I'm asking for, just a request, I'll run it through the bond credibility chain, XLSX, which is the ultimate bond lie detector, and we'll figure out what the real value of these bonds is. The point of the matter is, look at how deep the problem is. Economic Development Commissions are using your money to invest in things that you can't see, you didn't vote for, and you have no control over. By the way, either do the EDCs. Everything that I just stated goes to the point and proves up one simple criteria. It proves up that the X cannot be greater than the Y. The demand on the money cannot be greater than your ability to pay for it. Once you see everything through that lens, you understand exactly how much of this is pure fraud. Mitch, a lot of this is pure fraud. So let's go under the hood now and try to figure out how deep this problem actually goes. Here's a pretty significant post that came out on X. The ghost of 2008 just appeared in the data and almost no one's paying attention, short positions. So short positions just skyrocketed 21.5% in one month, slamming right into the 2008 crisis level at 3.8%. But I also, and here's some charts right here, you guys. The crazy thing is, remember 2008, we had a public global recession. If we don't have that right now, then what do we have? Broadened lives? Even though mom and pop needs the government and the Fed and the banks to stop creating inflation that we have to pay back, they're still planning on not raising interest rates and hopefully sending a lot of these companies out of business because the entire market just flipped again. When we go to December, now the market is saying we have a 15% chance of absolutely no rate hike by the end of the year. A couple of weeks ago, this showed three additional rate hikes. The market has no idea what it's doing because it's pure fraud and everyone is lying to everyone. But even if they don't raise the federal funds rate, the Fed has completely lost control of what they say is the most important asset in the world, the 10-year treasury bond, which credit cards, key locks, and debt like that are greatly impacted by as well as residential mortgages. And somehow today it's up again. This is up three basis points as the recording of this video sitting at 5.3%. And the longer and higher that this goes, the faster the entire economy is going to have their Lehman Brothers moment. And when that moment hits from an asset price standpoint, it's going to be really, really bad because what's happening right now is essentially like we are talking about in everything a bubble. So when we only look at the housing market from a bubble aspect, you can see this bubble is absolutely insane. The global financial crisis peaked at about 6.8, which means 6.8 years of the medium household income to pay for the average house. Right now we're over that and we've been over that. Now, whether or not you think that bubbles burst or not, which they kind of always do, this is a bubble. And this is the biggest and most sustained housing market bubble in history. At the same time that we have one of the biggest bubbles in the stock market in history, depending on what data set you're looking at, we're looking at the Wilshire 5000 to GDP ratio. And you can see, again, the bubble right now in the stock market is absolutely off the charts. Literally, it's off this chart. And here's another bubble. It's called the U.S. deficit. The total deficit right now in the United States that you're responsible for and I'm responsible for, which is roughly four times worse than the global financial crisis. We can't escape this debt. We have to service this debt and pay interest. And that interest alone, just to service this debt, not pay it off, is one trillion and skyrocketing higher. That's why we had a $2 trillion deficit this year. They have nowhere to go. We can't make enough money just to service the debt. Look at that, you guys, absolute lunacy. And one of the reasons why for the surge in asset prices, they're gonna turn to bankruptcy holdings in a second here, but M2 money supply. So all of the quantitative tightening that we did and how much suffering that mom and pop went through, it's all done. It's all behind us now. They fixed the economy, right? In their minds, it's all fixed now, right? Because M2 is going up again. Asset prices are historically low. So everything is okay once again. So the question becomes is how do we protect ourselves? And if we still have money and we can still save money, where should we put our money? And obviously, you guys, we don't wanna go out to eat. We wanna check our subscriptions. But one of the things that people want to invest in, a few people wanna invest in, are things like cryptocurrency and Bitcoin. And look at this plummet right now. So as we're recording this video, I'm not sure why it's plummeting downward, but it's very interesting. But I wanted to show you guys the growth. So Bitcoin over the last three months is up 34%. And remember, it's not collateralized. It's a propaganda thing. It's like a hype thing. However, over one year, Bitcoin is still down over a year, 31.88%. And when we look at traditional collateral like gold, you guys can see when we scroll down here, that gold over one year doing way better than Bitcoin, up 4.6% over one year. So way better than Bitcoin. But over three months, it's not up at all. It's actually down 0.2%. So we can make the argument that at least over the last three months, that Bitcoin has mathematically outperformed metal, not over the last year, but over the last three months. And the same thing holds true with silver, except silver is in the best position of the three assets over one year. Over one year, silver's up 26.78%. So it's doing the best over one year. But look at three months, also down just like gold. Over three months, 1.8%. Now, personally, I'm going to hold for as long as I can. And hopefully until I die, I never want to sell my metal ever. Now we've got a special treat for you as we're going to go into things like how to protect yourself and understanding the problem. And then after that, I'll ask Mitch things like, well, if I can't even save money and I'm more interested in fighting corruption than investing, then how can I invest? How can someone like me invest if I'm doing this? So I'll get to that. But before we do that, let's go over this presentation so you guys are a little bit more familiar on what you can do and why. Just before I get into this next session, I want to touch on something that Travis had just said. It's quite often stated in the press that the US national debt doesn't matter. Well, if that statement were true, then given the fact that the Federal Reserve has boxed themselves into a corner and the government itself is discussing options such as inflating our way out of the debt and or growing our way out of the debt, which would require doubling of the gross domestic product from roughly $25 trillion to $51 trillion. And all that would accomplish would be the ability to pay down roughly $2 trillion worth of the US national debt. The problem with that is that you just saw $2 trillion worth of deficit. It didn't even move the needle if the US national gross domestic product is doubled. That's the problem. That is how big this debt is. And given the fact that the debt is that great, it does matter and the press can only be seen as ignorant and delusional. And that actually ties right in to the next session that we're going to do here. So a viewer had asked, how are you going to succeed? And my first statement is, it's not me going to succeed. I'm not doing this for Vexlin. I'm doing this for the United States of America because I can ask. I understand the math. I understand what's at risk. I understood that roughly 10 years ago. And in that 10-year period, we have been building a mountain of evidence that isn't even up for debate because it's the government's own documents. So the idea here is not how am I going to succeed. It is how we as a society are going to succeed. As part of that, how are we going to win? Well, I've walked through the stages. One, everybody has to have a basis of an education as to what's really happening here. Not listening to the press, but actually doing some homework and getting involved in your local community to determine what the fraud is. We're going to use the courts for those who are so inclined, which we are doing. We have a federal case, and we have a case at the Supreme Court of the United States. Comparing the claims to the records, this is the budgets, the bonds. This is all done at a local community level for which you can use the ORRs that Travis has on his site, and he'll show you how to do it. Follow the household cash flow. This is paramount because as I have said, the X cannot be greater than the Y. It doesn't matter if you're a hotel, a retail property, or mom and pop's household. All these things are the same. They're operating entities. Looking at the history and the legitimacy of what was versus now what is by the depot being so great, and then being involved in the policy and participation to flip the switch, which is going to hold these people who have done this accountable. That's the graphic, and then in this document is the text that will actually walk you through those elements. The point being, the more people that get involved in their civil duties, the better off all of society will be. You can't sit there, as I've been saying, and just say, well, somebody else is going to look after this for me. First of all, that's being lazy. Second of all, that's not what society requires of you. We the people, the Constitution of the United States was written in such a way that it exists for the population, not for the sake of government. Government for the sake of government is the definition of tyranny. It's that simple. We are where we are with regard to these debts because mom and pop didn't get involved 40, 30, 20, 10 years ago to put a stop to this nonsense, but now the debt has grown so large, it will implode. This is the mass. Somebody can say, well, we disagree with you. That's fine. Disagree all you want. I'm not asking anybody to agree with me. All I'm saying is prove it. I have the proof. We have put this proof forward in the form of criminal complaints. We have put this proof forward right to the U.S. Treasury itself. Hand us the documents, and we'll make a decision as to what the value is based on the mass, not based on political will. If you can't disprove it, then it has happened. This is why mom and pop have to get involved in the local communities on the open records reports. Mitch, I would certainly agree with you that some of the ways, really the only way out of this is for mom and pop to step up, learn how I'm doing the public information request, learn how to take control of your government, and I'm pleading and I'm begging with you as a viewer, please do that right now. Go to my website. The link's in this video, and do it right now. It's easy. I have step-by-steps, ABCs, Cat Hat. Everyone can do this. All you have to do is want to stop the corruption, and you will. Trust me. Test me. Try it. But before I let you guys go, I want to ask you another question, Mitch, and it kind of has to do with what I'm saying here. So, financially, I'm suffering. I have lost probably 50 maybe more percent of my income. One of the reasons why is instead of me profiting and me being motivated to profit, like Wall Street and all these greedy investors, my motivation is now in fighting and creating a permanent change. And so my motivation is like all over the place now because I don't want to lose my house or get kicked out on the street, and I don't want to stop fighting the corruption. So with someone like me that really is motivated to do something else and I don't even have the ability to save money anymore, Mitch, I can't even save money. I need help from people. We have a link on my website for donations. It's hard right now because I don't want to profit off of people. I want to make change so people can thrive. Those are my people. And to the viewers, those are your people. But Mitch, what do I do? What do you think I should do to win? This isn't just a matter of Travis. This is a problem with a lot of podcasters. It's endemic in the system. There are podcasters out there, including Travis, who have skills, but in today's society, those skills are not well compensated, which is why people who donate to these type of podcasters is very important. They can't make a living anymore on YouTube. That's become crystal clear. The problem is there's only so much bandwidth. And even for a person such as myself who has not made 10 cents on any of this, it's a huge problem. In fact, I've laid out a massive amount of money in terms of lawsuits and legal. The system is that badly corrupted. And we do this because the idea is to try to protect mom and pop. And you've got 42 million households in harm's way of bankruptcy. That's a fact. If they go down, society goes with it to the point where civil strife will seem like a walk in the park. That is exactly why when we started down this road, we said this has got to be raised in the public to stop civil strife and or worse from occurring. But that means that it must be realistic that I have to choose, right? I have to make a decision. Because of my situation, I have to decide what do I want to spend more time on? Getting in a position to where I can save money again or staying in the fight until I win because I'm close in winning. I can't have both, Mitch. And so you hit a nail on the head on the first one, which I believe is the most important thing. But I think what we have to understand, and I know you don't want to say this, but we have to understand this, especially if you're a boomer or you're a little bit older or whatever, the same opportunities that we had, as youth, they're no longer here today. Even if I started making another $1,000 or $2,000 a month, I probably still can't save my money. I don't have the ability to do what we're doing and to make money. And the thing is, is I'm not alone. So to push back against you, and maybe the answer is you can't, but can I make more money, Mitch, if I choose to stay fighting? Can I make more money? That becomes a function of the subscribers and those who donate to the system. It's hard right now, man. It's hard. It's extremely difficult because there's only so much time in a day. And the amount of effort that has gone through our hands, really, in the last 20 to 30 days, there are people that can't write the volume that we have put together in 20 days. They can't do it in a lifetime. And it's all factual-based. Everything's on our websites, totally transparent. But the public doesn't pay for this. And therein lies the problem. You have a very difficult time asking people on the pop, donate $10 a month, $20 a month, et cetera, et cetera. They don't have no money either. They don't have the money. Yeah. So this is not just a podcast-type problem. It's a societal problem. And then you look at what the press is doing, and I use that word delusional on purpose. They are literally going against their own viewership by promoting utter nonsense. And if they don't know and can't prove up what's coming out of their mouths, then perhaps those stations should be shut down. And by the way, it's on both sides of the aisle. Yeah, but we're trying to be different. And I want to show the viewers, again, I'm pleading with you, please. We don't want to be fighting in vain, right? We don't want to do all this effort for no reason. I need you guys to take us seriously. Go to the links in the description. Start signing up for stuff. Start empowering you. Start understanding your capabilities. Start understanding what the Constitution is. And one way to do that is go to Mitch's brand new website, constitutionalfidelityproject.org. Now, once you're here, I want you guys to go ask the library. So click this, ask the library. Then the ask the library tab comes up. I want you guys to scroll down right here where it says start here and click that. Then this page comes up, and I want you guys, you can go into this, but I want you guys to scroll to the bottom right here where it says you can type in a question. And I typed in the question, why is the Constitution important? I hit enter, and 12 separate documents come up to educate you guys. So please start here to understand that we are the only country in the world where we, the people, are supposed to be in control of the government. And the moment that we lose the Constitution, we lose America. Another great website to go to is mockingbirdproperties.com. This is Mitch's website. He has a treasure trove of education and information. Once you get here, I want you guys to click on the upper right where it says DCAT. Once you get here, here's what the treasure trove looks like. You guys can click on letters, articles, discussions. You can sign the petition, quick overview of videos and podcasts. It's all right here. And when you're done with this, I want you guys to go to my website. Again, there's nothing that costs money here. Go to realestatemindset.org. This is the first book I want you guys to take right here. The Constitutional Fighter is going to teach you within one day how to set up a system to break your local government and to bulldoze your way to the truth. I also have other things on here like proof that what we say works. You guys can go to the Organized Crime or the Godly tab. You guys can see some of the arrests. You guys can see the lawsuits. You can go to the Election Conroe tab and see that we helped people get elected. Pretty much a clean sweep. We had to do rallies. It's all right here. Criminal complaints. Then I have my active lawsuit against Montgomery Central Appraisal District right here. The guy that assaulted me. This is the guy that's suing me for $100,000, even though he's the one that put his hands on me. Go shake here. Now, if you want to follow our advocacy in more detail, I want you guys to go to realestatemindsetsubstack. And I basically have a journal I do once a week at least that's going to tell you guys where we stand in our advocacy, including some presentation and seminars that Mitch has done. So when Mitch says we've been putting in a lot of work in this advocacy, guys, we have been putting in a lot of work. My question for you is, have you guys been using it? I hope so. I love you guys. Don't forget that. Mitch Bexler, I want to give you the last words. There's no doubt that money is in short supply for mom and pop. It's a global problem, not just an American problem. When you understand the reasons why, that puts more power back in the hands of mom and pop and gives them the ability to do something about it. For those who are fortunate enough to get their hands on cash and those who can earn a little bit more money, where that cash is excess money, you would be well advised to put it into metals. And as I've been stating, scale in. Price at this point doesn't really matter. The bottom line is, if you look at metals from a very simple standpoint, generally speaking, they keep up with inflation. The advantage to the metals is that there is no third-party counter. We started this video with a statement on Lehman Brothers. That is the ultimate definition of third-party counter. That is why they printed so much money so fast to protect the tentacles that spun out of Lehman. They kept entities afloat that should never have been kept afloat. They should have been allowed to go bankrupt. How do we know that? Well, you're too potential to start with Lehman when it went broke. And right now, you're close to $40 trillion. This is a problem of unaccountability. People not paying attention to the actual balance sheets. This is a problem of fraudulent inducement. X cannot be greater than the Y. If you've got the excess cash, turn it into metals. You'd be well advised to do so. I'm going to add again, a lot of people miss this part. Scale in, right, a little bit each month if you want to start investing. Don't just withdraw your whole 401k and go stack up on it. Or, you know, I'm not a financial advisor. If that's what you want to do, that's what you're going to do. Either way, my main thing is I need to explain to you guys how much I really need your help. And I really am trying to do everything I can. I'm trying to think of as many ways and different ways as possible to get you guys to stand up. You that's listening to this right now is who I'm talking to. I'm praying, I'm begging you to help us in our advocacy. We cannot do this alone. We love you enough to start. We love you enough to lead and to put the step-by-step guide together. Please, you guys, we are asking you to love your people enough to join us. Having said that, if you guys are out there just trying to figure out what's going on in this life, in this world, in the economy, you guys already know we wish you luck and we hope you win.