Big Problems at the Big Bank Signal an Ominous Warning for the Economy

Big problems at Wells Fargo signal an ominous warning for the broad economy. The big bank's loan origination pipeline is collapsing which means another big round of layoffs is about to hit as we head into the holiday season. What does this mean for interest rates? As you'll see, rates are about to head lower as the banks trap customers in high-interest loans.

Markets Insider Pro™ (Steve, Jeff & Tracy's Research and Trade Reports)

Portfolio Shield™ (Steve & Jeff's Momentum-Based Investment Strategy)

Portfolio Shield™, Momentum Timer Pro™, and Markets Insider Pro™ are unregistered trademarks of Steven Van Metre Financial.

Watermark Artwork by Jasmine Miller Twitter: @jazcreative

Atlas Financial Advisors, Inc. (AFA) is a registered investment adviser and the opinions expressed by (AFA) on this show are their own and do not reflect the opinions of YouTube. All statements and opinions expressed are based upon information considered reliable although it should not be relied upon as such. Any statements or opinions are subject to change without notice.

Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed.

Information expressed does not take into account your specific situation or objectives, and is not intended as recommendations appropriate for any individual. Listeners are encouraged to seek advice from a qualified tax, legal, or investment adviser to determine whether any information presented may be suitable for their specific situation. Past performance is not indicative of future performance.

[richardrodriguez]

Steve, in 2007 I borrowed 200k from WF & moved to Las Vegas & bought 5 foreclosures,
the loan staff was walking out with boxes of their stuff, the cubicles where empty
about 4 where laid off, I had to beg one to do my loan, so he stayed & I got my money fast.

this is no different than 2008.

[cdawgthemann]

True, my friend just got a job offer at the mortgage company her mom works at... and shortly after they fired her mom!

[markburnham]

Who could have imagined that rapidly rising mortgage rates would lead to a slow down in mortgage writing?? Shocking news.

[SmokinMoaksBBQ]

He got me with the different inflection today. Way to keep me on my toes Steven!

[lonihollenbeck]

My parents both sold Real Estate and in my time I had my fair share of houses, and the worst bank to deal with was Wells Fargo. If I'm not mistaken, they had some involvement with Greentree and if I had had the money to sue them, I would have for their collection practices.

Later on I would find that someone's DID sue Greentree which became a class action lawsuit, and I got a couple of bucks outa the deal. Screw Wells Fargo, let 'em fail.

[danfarrand]

I've tried to do business with WF in good times and bad and it's always been so painful and disorganized, that none of our loans ever proceeded to close. In every case, I ended up going somewhere else.

[jobe]

There will be no reduction in food inflation with high energy prices.

[kerstenukatz]

Great presentation, Steve. Greetings from Germany.

[michaelh]

Thanks for the analysis. Why do you think the Fed will pivot when given all the data the Fed has seen, Powell just said that they have a long way to go to bring inflation under control?

[MT-ekte]

Don’t blame me, I voted for cheap gas, no war, and mean tweets.

[ADobbin]

Since when do banks give money to depositers? I haven't seen any kind of real interest in 30 years. They take our money, use it to make themselves rich and give us a crumb or two. What happens if prices go down? More people will be able to afford homes even at the higher interest rates. 120k at 8% is a lot less money than 400k at 3%. Why do you think banks want prices of real estate to stay where they are?

[sarainireland]

great info thank you ..just a thought on inflation....but you are thinking a tightening on business activity. will lead to deflation and the fed will pivot . but I reckon diesel shortages will lead to food inflation with farmers and deliveries

[tomb]

Steve still waiting for that pivot like most traders...that's not coming. Here's a hint when pivot comes: when inflation drops by several points.

[atomicgaming-eso]

Bro got a new crisis video every 13 hours

[subjamt]

Its not worse than we thought! Good news

[stevenrichersr]

The other part of refinance is having to come up with extra cash to refinance or roll those fees into the loan.

[jmarie]

Thank you Steve! Have a great night everybody!

[jorgerivas]

Credit card companies seem to be tightening up also. Our son has very excellent credit. He tried to buy a new $300 I-phone on credit. He was rejected by all the credit card companies. Here in South Texas, companies want people who speak Tex-Mex or only Spanish. They don't like to hire monolingual English speakers even if they're short-handed.

[etcot]

Very good point about the banks trapping you to the higher rate.

[maxbroomi]

Anyone notice Wells Fargo stopped providing vehicle loans as of 2020.