Oil Dips, Stocks Rip as War Ends for Fifth Time in 19 Days

Hinzugefügt: 2026-05-10

[00:00:04]All right. Good morning everybody.

[00:00:13]Good morning all you magnificent millet heads of the world. Happy Wednesday everybody. Today is May 6th, 2026 and there's great news. Everybody around the world is celebrating because the war is over for the fifth time in 19 days.

[00:00:30]That is according to the same guy at Axios who's been saying the same thing.

[00:00:35]According to the same anonymous sources, we've got oil is plunging. Stocks are ripping. So, is it maybe it's real this time? Or maybe it's just more of the same BS. Oil down $8 to $94 a barrel. As of the last time I looked, it was down $14 earlier. Stocks, Bitcoin, bonds, gold, all ripping in unison. The dollar way down here as the world adapts to apparently the straight of horror moves is like wide open again for like the fifth time in 19 days. Uh like like everything like everything's back to normal. That that's according to Barack Ravit at Axios who's reporting on this.

[00:01:15]and Brock Reed, he's this Israeli journalist who works for Axios and CNN who's been reporting essentially this same story over and over again and the market reacts to it as if it's gospel.

[00:01:28]Now, according to this latest iteration of this story, there's this one-pageou memorandum of understanding that's that's been submitted by the United States to the Iranians via the Pakistanis. Includes 14 bullet points.

[00:01:42]We haven't seen the bullet points. We don't know. Um, President Trump did suspend Project Freedom, his plan to escort ships through the Straight of Hormuz late yesterday. That's after the Iranians shot at a bunch of boats, including our Navy, and launched multiple missile strikes at the United Arab Emirates despite somehow not violating the ceasefire. Somebody explained that to me, but I digress. And then there's all kinds of statements released by the Iranians this morning about this toll booth thing and and and websites for applying for passage of the straight of Hormuz that shows me they are not really serious at all. We're not any closer to a deal. At least doesn't seem like it. But hey, Axio says a thing and the world reacts. That is the story this morning. By the way, guys, uh I'm doing this my I'm having some work done on the house and and they they cut the cable line accidentally yesterday. So, I'm doing this whole thing through a hot spot on my phone this morning. I don't know what the quality is going to look like. I apologize for any choppiness in the video. It's a going to be a short-term thing, I assure you. Uh, we also got AMD earnings. AMD is absolutely ripping on earnings this morning. Data centers, big tech, capex, no surprises there. What is surprising to me this morning is super micro computer, SMCI, they are also ripping on earnings. This is as their co-founders being indicted for smuggling chips to China illegally.

[00:03:07]The same co-founder that they fired after their p previous accounting scandal. Then they rehired him as soon as they got the stock relisted. Um, who believes anything these people say is beyond me. A guy at Super Micro said a thing. Oh, let me go spend money based on that. Okay. What what success manual did you find that in? Well, apparently people are buying it this morning. Also interesting news from super micro computer is they have got I love these stories. Another AI nuclear story. This time it's nanuclear. Another pre-revenue micronuclear reactor company that's never built a reactor. Doesn't even have a prototype, but they swear one day they will. Trust me, bro. They signed a nonbinding letter of intent with Super Micro to use their micro reactors to power data centers, which Super Micro doesn't run data centers. But what whatever a bunch of crooks said a thing about nuclear power with a company that doesn't yet do nuclear power stocks ripping across the board. It's the 2020s. What can I say? We've got Disney posted solid earnings beat in virtually every category other than the ongoing issues at ESPN that they've been dealing with for over a decade. Good morning for Disney. We got ADP private payrolls came out. The United States economy added 109,000 jobs for the month of April. That bodess well for the non-farm payrolls that we expect later this week on Friday. Uh some of the categories, trade, transport, utilities, construction, and health and education. Some similar scenes themes that we have seen over the last few months. And we've got an interesting one from the Financial Stability Board or the FSB. Uh this is a gaggle of central bankers from around the world. This organization is funded by the bank of international settlements and they are out with their action plan on private credit and this action plan doesn't really take any action. They they they they suggest exploratory committees and having conversations and discussions going forward like yeah we've got a plan to have a plan eventually. We hope that is me and three other guys. Yeah. Okay. So, that's what the FSB is out with. Let's Let me see if I can summarize this FSB plan. Private credit is a box. We know there are problems in the box, but we can't see inside the box. So, we hope to have a plan to address the problems in the box someday. Hopefully, maybe. That's what's going on in private credit this morning.

[00:05:39]And again, we're just a few weeks away from the return of those stories that we got last month about the surges and redemptions and negating of withdrawals.

[00:05:48]that's going to come back at the end of the next quarter. We saw it. We saw it over in the first quarter. We will see it again because nothing has changed.

[00:05:56]And you know, while the whole world is saying, "Oh, don't worry. It's software." Well, remember we had that big hit over at HSBC yesterday. That wasn't software. That was mortgage fraud. First Brands, that wasn't software. That was receivables fraud.

[00:06:08]Auto parts. Uh Triricolor Auto, that was collateral fraud. Car car loans. uh Kario Capital, that was receivables fraud for telecom. None of those big blowups in private credit had anything to do with software, but everybody's like, "Oh, don't worry. It's just a software problem because AI is so awesome." Okay, sure. Guys, we got a lot to talk about this morning. Why don't we shrink my big melon of a head and let's see what's going on in the world of finance. Don't forget the like button and the subscribe button so you can have your coffee with the melon heads cuz we do this every business morning. And right now, stocks are rippingish.

[00:06:44]They were ripping, I should say. Uh, big gain here. That's on that Axios report from the same guy from the other Axios report. According to the same sources that never want to be named, stocks ripped on that news. But you notice they started rolling over around 7 a.m.

[00:06:58]Eastern time, heading back lower as the Iranians started doing Iranian things.

[00:07:04]And now the S&P is higher by 51 points or 7%. The Dow, same shape of the curve there, higher by 423 points or86% to the upside. And the Nasdaq is higher by 311 points or 1.11%.

[00:07:19]Stocks are up across the board this morning. The US dollar is sharply weaker, off by 54 basis points, 97.95.

[00:07:28]That makes sense. Oil is traded in dollars. A big drop in oil prices means slightly less demand for dollars. So we're seeing the Dixie weaken a little bit here. Uh but you'll notice a big dip and then some more after that. But around 700 a.m. right as market started to turn and head back down a little bit, we saw the dollar start to strengthen.

[00:07:46]The world is coming to its senses, I think, and realizing, oh, this is just another one of those uh wag the dog headlines. Uh somebody needed to draw bone oil lower today. What can I say?

[00:07:58]Looking over at the bond market, we have got yields are dropping sharply. This is interesting to see yields dropping sharply. Typically, bonds are a safe haven asset. People buy bonds when they're running for safety. But bonds behaving a little bit like a risk asset this morning with prices moving higher.

[00:08:14]When prices move higher, you get yields moving lower, hence the red. The 30-year yield 4.934. That's off by almost five basis points. The 10-year yield 4.353, lower by 6 and a half points. The 2-year at 3.872, lower by almost seven points, about six and a half points there. And the one month is actually higher by a fraction of a point at 3.649.

[00:08:38]And look at over at commodities again.

[00:08:41]Speaking of safe haven demands, not acting like safe havens. Gold and silver behaving like risk assets again this morning. I get I get why they're green.

[00:08:49]The dollar is weaker. When the dollar gets weaker, gold and silver typically rally. But that being said, we've got a major risk on move happening in markets right now. And precious metals are rallying along with the risk assets.

[00:09:00]That makes me very nervous. I've been observing this for quite a while now. I don't quite get it and it just gives me the heebie-jebies. I'm not going to lie to you guys. Spot gold 4677 higher by $120, 2.62% in the green. Spot silver 7676 higher by $3.93 or 5.4% to the upside. Again, I got the heebie-jebies about the whole risk thing, but I still like the shiny.

[00:09:28]Copper, meanwhile, higher by 3.3%.

[00:09:31]Platinum higher by 3.1. Palladium higher by 2.8%. Metals up across the board.

[00:09:36]Dogs and cats living together. Mass hysteria. Crude oil though down sharply.

[00:09:41]Seven bucks lower now for WTI crude.

[00:09:44]$9522 off by 7%. Similar move happening in Brent. All right. Big big drops in oil.

[00:09:53]Let's take a look at that chart here again. Big red candle. Now you'll notice guys the wick on this candle. it it's a lot bigger than where we're currently at. Let's set this to one minute candles. And you can see again kind of the same thing. We see we had this big drop in oil overnight around 7 a.m.

[00:10:11]Eastern time. It started to give up some of that decline here. So we something changed around 7 a.m. I think it had to do with some of these comments that came from the Iranians, but we'll we'll get more into that in just a minute. Here we got Bitcoin is sharply higher this morning. $82,211 is priced on Coinbase. Higher by $1,300.

[00:10:34]Let's set this to minute candle. See if we got the same shape. Uh not quite so much. Uh yeah, actually we do. Uh Bitcoin was ripping overnight. 7 a.m.

[00:10:43]Eastern time comes around and it starts to head a little bit lower. Uh, let's talk about this because a big part of this latest rip in Bitcoin has been strategy and their use of stretch, their their new magic money Ponzi scheme that's inflating Bitcoin's price.

[00:10:57]Bitcoin treasury firm strategy breaks from never sell approach to the flagship crypto. This is interesting. Strategy even talking about possibly someday selling Bitcoin is news.

[00:11:10]Strategy's latest earnings release marks a subtle but meaningful shift in the company's approach to Bitcoin. Instead of passively stockpiling Bitcoin, it's going to more actively manage the balance sheet to maximize value of Bitcoin per share. That's a reversal from the company's long-standing never sell strategy, which originated with chairman, founder, and Bitcoin evangelist Michael Sailor. And it comes as the company posted a 12.5 billion net loss in the first quarter due to the slump in Bitcoin's price at the beginning of the year. Our ability to sell Bitcoin either to buy US dollars or sell Bitcoin to buy debt if it's accretive to our Bitcoin per share is something that we would consider going forward said Fun Lee, president and CEO of the company on the earnings call.

[00:11:51]That is a big shift in strategies language there talking about selling Bitcoin to buy debt. What the heck does that mean? Uh and also we got this one from Michaela Sailor on Twitter today.

[00:12:04]uh reassuring everybody, Bitcoin capital gains funds strategy credit dividends.

[00:12:10]So again, that is suggesting that strategy might sell Bitcoin in order to pay their expenses and their stretch dividends. Right now, Stretch STRC, that's that that new a lot of people are calling it a Ponzi scheme probably because it really resembles a Ponzi scheme. Uh that bit that Micro Strategy is issuing and as they sell shares of Stretch, they're using that to buy Bitcoin. Well, Stretch pays this big dividend. That's the big draw, right?

[00:12:36]It's a dividend of like 11%. Uh, and what he's saying here is Bitcoin's capital gains fund stretch dividends.

[00:12:43]So, if there are no Bitcoin capital gains, where does Stretch's dividends come from? There there aren't any. So, the only way Stretch can afford to pay their dividend is if Bitcoin keeps going up in perpetuity. So then I ask you, Stretch shareholders, why not just own Bitcoin? Why own Stretch? If the dividends you're collecting is the reason you're buying it, and the only reason those dividends exist is if Bitcoin keeps going up forever, then why not just own the freaking Bitcoin?

[00:13:15]Because the capital gains from Bitcoin going up are going to be a lot more than the dividend that Stretch is paying you.

[00:13:20]And if there are no capital gains from Bitcoin, then Stretch is worthless because it doesn't pay a dividend. And this is why I'm so always just talking about why I I just think this is a this is a complicated financial product that it's not complicated. They make it sound complicated, but it's market to marketed to financial illiterates in order for Michael Sailor's infinite money glitch to keep going. And well, now looks like he's got to start selling it.

[00:13:46]All right, but here's the big story this morning. Iran evaluating US proposal to end the war as China calls for peace.

[00:13:53]Iran is evaluating a new proposal from the US to end the near 10-week war, according to people familiar with the matter. China added its voice to global diplomatic pressure to wrap up the conflict. Washington's one-page memorandum of understanding will, if Iran accepts it, lead to the gradual reopening of the straight of Hormuse.

[00:14:10]Couldn't help but notice that gradual there and the lifting of the American blockade on Iranian ports. That's according to the person who asked not to be identified. Of course, nothing has yet been agreed, the person said. and detailed negotiations on Iran's nuclear program will come later in the process.

[00:14:27]Axios read by Rick Barack Ravid earlier reported on the plan which includes provisions for the potential removal of sanctions on tyran tyrron. Iran is expected to send a response that hopefully isn't a missile via mediator Pakistan in the next two days. the person said. All right. And uh want to extend a shout out to my friend Samantha Leuk who posted this one. This sums it up pretty well. Like clockwork. Axio's fake news that moves markets is like a Bessant dollar swap that must be returned in time. And she's quoting Noodles here. Crypto Paul who says Axios reported an Iran deal as imminent five times in 19 days. Five times no deal.

[00:15:07]Why does the same story keep coming from the same reporter? His name is Barack Ravid and he's got deep sources to the White House and Israeli intelligence.

[00:15:15]But I'm I'm sure these people familiar with the matter are very credible. And right as that's going on, we got Walter Bloomberg says Iran moves to regulate Hormuz Transit. Iran has launched a new website and authority to oversee traffic through the Straight of Hormuz signaling plans to charge ships for safe passage.

[00:15:34]The site is currently empty, but vessels are expected to receive rules and instructions via email. And it looks like those rules have come out. Uh here's here's the rules. Uh an email sent by Persian Gulf Straight Authority to several shipping companies whose ships are stranded in the Gulf with instructions for passing the straight of Hormuz. Priority of payment in Iran's national currency, which was 1.8 million to the dollar a few days ago. Okay, you got to pay in toilet paper. Issuance of guarantees in Iranian banks.

[00:16:04]I I'm not really sure what that means to be honest with you. Does that mean insurance has to be routed through Iran's banks? I don't know. If a country caused damage to Iran in the recent war, it must first pay the damages before obtaining a passage permit. Countries that have sanctioned Iran or blocked Iran's money are not allowed passage.

[00:16:23]All right. So, what? Payment of reparations for the war. US, Saudi, UAE, Israeli ships not allowed to pass. The correct title Persian Gulf must be written on all documents. Well, apparently I have to throw out my letter head that talks about the Gulf of America Jr. I guess that's not going to be included in there. And non-compliance with the above will result in seizure and a fine of 20% of the cargo value. Uh does it really look like the Iranians are serious about this this peace deal here? I mean, because this is a a big middle finger that nobody's going to go along with this. Nobody. This guys, nothing has changed. And yet oil is just plummeting and stocks are ripping on this. Bombs probably be flying by the end of the day.

[00:17:07]Anyway, we've got earnings from AMD also this morning. AMD stock soarses on Q1 earnings beaten better than expected outlook. AMD reported its first quarter results after the bell on Tuesday, beating expectations on the top and bottom lines and topping Wall Street's projections on second quarter revenue outlook. That's putting it mildly. This was a big beat by AMD and the stock is ripping because of it. For the quarter, AMD saw earnings per share of A$137 on revenue of 10 and a quarter billion dollars. Analysts had called for a$128 and revenue of 9.89.

[00:17:38]The company saw EPS of 96 cents and revenue of 7.43 billion in the same quarter last year. Big growth, big beat.

[00:17:46]And in the second quarter, AMD says it will see between 10.9 billion and 11.5 billion in revenue. Wall Street had flagged that amount at 10.52 billion.

[00:17:56]So, the guidance was was raised as well.

[00:17:59]Their Q1 data center revenue came in at 5.8 billion, up 57% year-over-year and ahead of expectations for 5.6. More data centers, more big tech capex. Nothing new here except AMD stock is ripping.

[00:18:13]It's up 14 and 3/4% here. It was up over 20% earlier this morning, but still $4746.

[00:18:21]Good day for AMD. And this thing is already up 66% year to date. Uh it's just uh gonna keep going apparently.

[00:18:31]And in this one, well, what can I say?

[00:18:33]Super microcomputers will buy anything Charles Lang tells them to. The the the people who invest in this company, I I don't know. They'll believe anything. Is Super Microtock finally turning a corner after smuggling allegations after earnings? That's after the accounting allegations last year. That's after the other accounting allegations a few years before that. Man, this company just loves to turn corners.

[00:18:56]Super Micro computer stock was surging after the server maker reported mixed financial results. It's is it finally turning a corner after the smuggling allegations for its fiscal third quarter. Super Micro posted adjusted earnings of 84 cents a share on revenue of 10.2 billion. Analysts were expecting 62 cents a share and revenue of 12.4 billion. And you can totally believe them because they're chip smugglers. In the same period last year, Super Micro reported 31 cents a share on revenue of 4.6 billion. Hey, just a reminder, these these earnings are audited by BDO. Oh, isn't Bo the same firm that First Brands executives said that they chose because of their lack standards? Ah, I'm sure that's nothing. The company has gotten a major boost from the rising demand from infrastructure needed to power artificial intelligence. Blah blah blah.

[00:19:43]AI AI super micro stock has tumbled 77% from its record closing high of $118.81 on March 13th of 2024 as investors have digested multiple scandals. Most recently, the stock fell 33% on March 20th after US government charged Super Micro co-founder Yi Shan Wall-E Law and two other individuals regarding an alleged plan to smuggle US assembled servers to China. Super Micro says, "Don't worry, those were the only three guys involved in our $5 billion chip smuggling operation." Yep. Three guys.

[00:20:17]Super Micro was not named as a defendant in the case. No, just their co-founder employees and a contractor. And it has said it's cooperating with the government while launching its own investigation. And I'm sure they'll investigate themselves and find no wrongdoing. Importantly, SMCI has not experienced any GPU allocation changes from Nvidia, who's always been okay with their chips being sold from China. Who are we kidding? And based on what we can see in its revenue guidance, doesn't appear to have any financial fallout from the allegations, wrote a Key Bank analyst. You have got to be kidding me.

[00:20:49]This market will buy anything, anything you put on Ron Burgundy's teleprompter.

[00:20:54]Super Microto up 11.4%.

[00:20:57]It was up 20% earlier today. Maybe people are remembering, oh, that's right. This company is full of But for now, the stock is ripping $315.

[00:21:06]Uh, but wait, we've got more. Oh, what happened? I I closed it. But we've also got this one. Nano Nuclear Energy is up 7.6% ahead of the opening bill. Uh, this is a pre-revenue nuclear company here.

[00:21:20]Let's see if I can find the story. Ah, yes, here we go. Nanuclear signs strategic with Super Micro to power the next generation of AI data centers with advanced nuclear energy. A nuclear company that isn't a nuclear company signed a non-binding letter of intent with a company that is known for fraud in order to power data centers with nuclear reactors that are not licensed by the NRC. And well, both stocks are ripping this morning. Congratulations.

[00:21:48]It's the 2020s here.

[00:21:51]Meanwhile, Disney Films and Parks lift profit in debut quarter for the new CEO.

[00:21:55]Disney's earnings were actually pretty spectacular. I'm not going to lie. And I say that begrudgingly because I'm clearly no big fan of Disney, what they did to Star Wars. Look how they massacred my boy. Uh, Walt Disney Company posted stronger results than Wall Street expected thanks to improved profitability as its streaming business.

[00:22:13]New Avatar and Zootopia movies and guests spending more at the company's resorts and on cruises. Earnings per share excluding some items rose to $157 in the second quarter, higher than the average estimate of $151. Revenue was 24.9 billion, up 7% from a year earlier.

[00:22:30]Operating income at all three of Disney's divisions, entertainment, experience, and sports, beat analysts expectations.

[00:22:37]Disney's direct to consumer unit, which includes Disney Plus streaming service and is led by Joe Early and Adam Smith, achieved double-digit profit margin for the first time. That's because they raised prices and they cut back on the amount of content they were producing.

[00:22:49]So, we got a little bit of shrinkflation and inflation going on there. The film studio led by Alan Bergman benefited from strong demand for Avatar, Fire, and Ash, Zootopia 2, and Hoppers from Pixar.

[00:23:00]The three movies generated more than 3.7 billion at the glo at the global box office. Operating income fell 5% at the company's sports division due to lower advertising revenue at ESPN and higher fees for programming. That's something Disney struggled with for years. Nothing new there. Guests spent more money at Disney's theme parks in California and Florida, which helped offset a 1% decline in attendance due to fewer foreign travelers. Fewer foreign travelers, probably the uh K-shaped economy, maybe a little bit of the trade war going on there. But that was offset by people spending more in park, probably because tickets went up and food prices go up. So inflation giving Disney a boost this morning. That stock is up 6.8% 8% ahead of the opening dell.

[00:23:45]$10740 for Disney.

[00:23:49]We also got ADP private payrolls came out. It was a pretty good jobs report.

[00:23:54]Maybe this is a good omen for the non-farm payrolls that we're going to get later this week. Although ADP and non-farm tend to differ wildly from time to time. Private businesses in the US added 109,000 jobs for April of 2026, the largest increase since January of last year and above forecast for 99,000.

[00:24:14]Stronger than expected data still reflects the Fed's described low hire low fire labor market where employers avoid layoffs but have significantly reduced hiring amid slower labor force growth due to lower immigration. The service providing sector led gains with 94,000 jobs driven by education and health with 61,000. Trade, transport, and utilities 25,000 and financial activities up by 9,000. The goods producing sector contributed 15,000 jobs mainly from construction up 10,000.

[00:24:44]Uh let's see. Small businesses were the top contributors, adding 65,000 jobs, followed by large companies with 42,000.

[00:24:50]That's encouraging. While midsize firms added just 2,000. So you can see there in the chart, pretty good month for ADP private payrolls. We'll see on Friday if that translates into the non-farm payrolls report from the Bureau of Labor Standard Statistics.

[00:25:07]All right. Meanwhile, the FSB, the Financial Stability Board over at the Bank of International Settlements, they're out with a warning about private credit. Global watchdog FSB unveils action plan on private credit risks.

[00:25:20]That doesn't really take any action. The world's top financial stability watchdog unveiled a tentative plan. They're tentative. It's not even They're not even sure they want to do it. A tentative t plan to tame private credit risks as bankers and policy makers escalate warnings about potential dangers colliding with a political push toward deregulation. The Financial Stability Board, which convened central banks, regulators, and finance ministries from the world's most powerful economies on Wednesday, said significant data challenges had frustrated its almost year-long effort to assess vulnerabilities in the 1.5 to2 trillion market. Uh, in other words, they don't have any freaking clue what's going on in private credit. Oh, yeah.

[00:26:02]Significant data challenges have frustrated our efforts. Yeah. Why don't you just tell us we don't know what the hell is going on in private credit? That that that's that'd be more accurate.

[00:26:10]Anyway, exploring new ways to address those data challenges is a key part of the plan laid out by the FSB to mitigate the risks. So, their plan is to explore new ways to address challenges. Nice plan you got there, Bob. Other action points include facilitating supervisory discussions of how vulnerabilities could be monitored, carrying out further risk analysis directly, and hammering out commonly agreed definitions for parts of the private credit ecosystem. They can't agree on All right. What's their plan? Explore new ways, have supervisory discussions, agree on definitions, carry out further risk analysis. They're helpless here. They don't know what the hell is going on in private credit. The sector's complexity, leverage, and interconnectedness could amplify stress and adverse scenarios posing broader risk to financial stability, the FSB Secretary General John Schindler said.

[00:27:03]Uh, in other words, this could spread to the wider financial system in the banking sector. He added that the lack of transparency could hurt investors as well as authorities since they may have only partial information about correlations and concentrations across loan portfolios and markets. Without this information, risk may be mispriced and vulnerabilities may go undetected.

[00:27:23]In other words, it's a box. We know there's a problem in the box. We can't tell you how big the problem is because we can't see inside the freaking box.

[00:27:30]The FSB also noted that private credit companies tend to lend to more indebted borrowers. Default rates are rising and instruments sometimes rely on ratings from smaller, lesserknown agencies. And guys, that part there, right, I'm I'm having shades of uh Georgia from the big short. Remember the the lady with the glasses, the the allegory? She couldn't see what was right in front of her face at at the ratings agency. They're talking about how private credit relies on ratings from smaller, lesserk known agencies. The most glaring example of that was actually right here in my backyard in Chester County, Pennsylvania. And it was a company called Egan Jones. And uh this is from back in middle of last year. The private credit market is a ticking time bomb in FA Alpha Daily. Since 2015, the private credit market has ballooned from 500 billion to $2 trillion, and it's attracting everyone from Wall Street giants to insurance companies and pension funds. At the center of the boom is a small company called Egan Jones Ratings. The agency employs just 20 analysts, but it graded more than 3,000 private credit deals in 2024 alone. Egan Jones Quick Process and generous grades have made it the go-to name for credit issuers and buyers alike. In other words, it was a rating shop. If you pay the fee, they'll rubber stamp that AAA. You just sign on the dotted line and you'll get the rating you want to go ahead and sell this to pension funds and anybody else. This company, Egg and Jones, they had 20 employees, right? 20 employees and they did 3,000 deals in one year. That's 150 deals per person per year. Tell me, what kind of due diligence are they possibly doing?

[00:29:15]How much could they really be opening up the books of these companies and looking inside? And this this company operated out of a house in Westchester, Pennsylvania. They've since moved on, but it was this one little house that you couldn't even tell there was a ratings agency working inside of there.

[00:29:29]It just looked like any other house in the freaking neighborhood. And they did 3,000 private credit deals in a year.

[00:29:35]And that's what the FSB is warning about as these lesserk known ratings agencies.

[00:29:40]Maybe, just maybe, their due diligence wasn't so good.

[00:29:44]Hey guys, I just want to say thank you very much for having your coffee with the Melons this morning. Don't forget the like button and the subscribe button on the way out. Thank you very much to my magnanimous melon heads on YouTube, Patreon, and buy me a coffee. Links are down below should you feel so inclined.

[00:29:57]Hi, Mom. Hi, Dad. Love you guys.

[00:29:59]Everybody, till next time, live small and dream big.