Topic: Liquidity Crisis

Dr. Kirk Elliott reports on the FDIC's "problem bank" list, which currently includes 63 institutions facing financial hardship. He notes the recent failure of Flow Bank in Switzerland as a sign of broader systemic instability. Elliott argues that the expiration of emergency funding programs in March 2024 has left the banking sector vulnerable to a collapse that could dwarf previous crises.

The collapse of FTX was triggered when CZ, the founder of Binance, discovered that FTX was wash trading its own FTT token to inflate its balance sheet. When Binance dumped $500 million worth of FTT, the price plummeted from $22 to $3, exposing a $9 billion hole in FTX's reserves. Armstrong notes that he had been warning followers to withdraw funds for weeks prior to the freeze.