Glenn Beck: Big, Bad Wal-Mart

GLENN: Well, after legal fees were paid -- and we're not sure what the settlement was. It was between $700,000 and a million but we know that after the legal fees were paid she was left with $417,000. So she really only has $470,000. Wal-Mart, you know, could have tossed in money and helped her out. They could have done that. Because after all, Wal-Mart doesn't need the money. Let's help this person out; they don't need it. I don't know why it's anybody's business on what they need and what they don't need. Who are you to tell Wal-Mart what they need and what they don't need? Shank said they didn't notice that in the medical plan they had the right to recoup all the medical expenses. So Wal-Mart said we need the $470,000. And they said -- the Shanks said, no, we're not going to give that to you. And they said, no, but it's in the -- it's in your contract. Court ruled that they were allowed to recoup what was in the trust fund of $417,000. Not the 470 but the 417 and call it a day. Shanks' attorney notified Wal-Mart of the settlement. He believed that Wal-Mart would let Shank keep the money. Quote: We assume three years later that Wal-Mart had made the decision to let Debbie use the money for what it was intended for.


 


 Oh, I get that. So if time goes by, that money's now yours. So the Shanks lost to Wal-Mart. They lost their appeal and then they had their worst loss shortly after the court case. Their son was killed in Iraq. That's horrible. I thank that family for the sacrifice this family has gone through. I'm not sure what this has to do with the case because the son wasn't killed by the truck. The son wasn't killed by Wal-Mart. The son was killed after the court case. In fact, after two court cases. Now it adds a whole bunch of sympathy. It adds yet another -- like I need anymore -- another tragic angle to this story but I think I got enough tragedy in the story. I mean, I don't think I need any more. If I'm going to feel bad for them, what, I'm not going to feel bad for the woman who now has brain damage and short-term memory loss? You now have to pile on a dead soldier? I don't think I need -- I don't need that. I'm cool. I feel bad, sufficiently bad for the family.


 


 But let me pile it on again. She not only has short-term memory loss and lost her son, that short-term memory loss allows her or forces her to forget that her son is dead. So every time she remembers her son, she says how is he, they have to say he's dead. So it's like he's dying all over again for the first time. Now how bad do you feel? Well, now I just want to rip the head off of Wal-Mart. For what? For what? Giving her the $470,000? Making sure that she was covered in medical care, making sure that she didn't have to fight soothe and nail for the medical care, that she got it. For what? You're mad at Wal-Mart for living up to their end of the bargain and then compromising and saying you owe me $470,000 but we'll take the $417,000 that you have in the trust fund? What? For making that compromise, you're angry with them?


 


 Another curious statistic that has been tossed in every article I've seen about this is the net sales of Wal-Mart for the quarter, $90 billion. What does that have to do with this story? Here's what this story is about. You go to work; you do your job. You then go out and you're driving around and some senseless accident happens. You then have to have your medical bills paid. Your employer has done the right thing, has paid your medical expenses, has paid for your insurance, made sure that everything is up to date. He pays for it, makes sure that you're taken care of. Then you decide to sue. You sue. Well, you have this obligation to pay back that medical expense. You want to know why everybody's medical insurance is so expensive? Because everybody sues and nobody wants to take responsibility. Nobody wants to even take responsibility of saying, no, you know what, I don't think I need that test. Nobody wants to take responsibility in a doctor's office because they've got to give you that test because they know if they say "I don't think you need this test but if you want to get this test, we can get it." Even if they say that and you made the decision to not have that test, if it turns out you needed that test, you'll sue the doctor. Nobody's willing to take responsibility for anything. Nobody's word means anything anymore.


 


 When you do business, your word is your bond. Everybody would be up in arms if Wal-Mart didn't cover this woman, but they did. All they're doing is asking for the money back that the insurance company spent. But everybody sees insurance companies as just these evil corporations that are just getting rich. And Wal-Mart is just getting rich. Do you know even their attorney said "We don't believe that they have a right, that the Shank family has a right to this money." We're not saying that Wal-Mart has a responsibility to pay us or to let us have this money. We just think it would be, you know, good of them. We think we deserve it more than them. Even their attorney says they don't have a right to this money.


 


 Now, what happens to Wal-Mart? Wal-Mart, because everybody jumps on Wal-Mart, Wal-Mart decides to fold yesterday in the dumbest thing I think they could have ever done. You know what, Wal-Mart? I don't know how you got to be this big. I really don't. Because you're this stupid? Now you've just said that you're going to rewrite your medical insurance so it doesn't say that. It says we will review it on a case-by-case basis. Do you have an attorney? Is there anybody in your PR department? You're going to review it on a case-by-case basis. Hmmm. So in other words, you decide who you're going to help out and who you're not going to help out. Oh. Well, that doesn't sound like a litigation waiting to happen. That doesn't sound like a PR machine just gearing up. How many people are going to sue you now? How many people are going to say, wait a minute, Wal-Mart doesn't need that money. They have a policy, they review case by case. I lost my legs in a meat grinder making sausage on a Saturday and what happens? They don't pay me. Why? They pay the white woman. What about me? I'm black. Oh, yeah. Yeah, sure, the black guy, they paid the black guy who lost his leg in a sausage factory. I lost both of my eyes playing pickup sticks. What? Is it because I'm purple? They won't pay me because I'm purple? That's what's going to happen. More lawyers, more litigation, more people going after them with PR. And yet nobody in the media, nobody in the media. Wal-Mart can do no right to anyone. I'm not a big Wal-Mart fan. I mean, I want you to know I don't care about Wal-Mart. I really don't. But I am so tired of distortion. I am so sick and tired of the lies. I'm so sick and tired of principles not meaning anything. Once you get off of principles, principles are the things that tether you. You have to know what you believe because the storms are going to crash against you and you need to be tethered by principles. If you are not tethered by principles, you are going to crash against those rocks every time.


 


 Well, what are the principles? The principles are right is right, wrong is wrong. No matter how much I need it, no matter how hard it is for me, no matter how much it sucks, it's not right. My word is my bond. I made an agreement. I didn't see it in there. Sorry. Man, it sucks. It's really going to be tough, but this is extortion. This is blackmail. I'll go to the media. I'll expose you. For what? For living up to my end of the bargain? For what? That is blackmail. And yet Wal-Mart folds. You don't deal with terrorists? Really? You just did. You just dealt with economic blackmailers. You had people who said, their own attorney said Wal-Mart, we can't legally ask them. They don't have to do this. But then -- and I don't even put it on the family as much as I do on the media. The media, they just -- MSNBC, man, they can just make hay with this. And what does Wal-Mart do? They make it worse for themselves in the long run and yet they won't say anything about, you know what, I give to charity.

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At the time of this post, the bid was up to $4,700 — but we can do better than that. Please help us raise money for a good cause, you don't even have to display it anywhere in your home, you can just keep it in storage or something! If you want this priceless piece created by one of the most influential people in the world of art, place your bids here.

Can you remember the economic crisis of 2008 and how you felt when the news broke that Lehman Brothers had collapsed? I have found an economic threat that everyone needs to be aware of, so you can prepare yourself in case we see another 2008 type collapse. I am going to present the evidence to you and I urge you to verify everything and to form your own opinion.

What is that threat?

It is a bank called Deutsche Bank. They are by far the most dominant bank in Germany which is the world's fourth-largest economy. In 2018 they had €2.08 Trillion worth of assets and the second-placed bank (DZ Bank) had €506 Billion worth of assets. To show you how dominant this bank is, they have more assets than the 2nd, 3rd, 4th, 5th and 6th sized banks combined.
When we review a business there are three key parts to analysis:

  • Market sentiment
  • Business numbers
  • Technical Analysis

Market Sentiment

Deutsche Bank has a long history of potential scandals including going all the way back to World War 2 and dealing in Nazi gold. Below are five recent stories which have increased the negative sentiment around Deutsche Bank.

  1. In 2007, they purchased a portfolio of loans worth $7.8 billion and purchased insurance from Warren Buffets Company. It was discovered they did not set aside enough capital to cover any potential losses. Over the course of the ten years, they lost $1.6 billion, and when they sold the loan they did not update their financial statements to include the big loss
  2. The Panama Papers are an ongoing investigation looking for many things including offshore tax havens. These investigations have resulted in several heads of state resigning including in Iceland and Pakistan. Last November, 170 police raided 6 different offices in Frankfurt looking for evidence of money laundering.
  3. Estonia is a small country in Eastern Europe. It has a population of 1.3 million people and a GDP of €26 billion. In January, it was discovered Deutsche Bank got involved with a Danish bank called Danke Bank and processed over $230 billion worth of cross country payments (including from Soviet Russia) through one bank in Estonia.
  4. There have been rumors of issues with Deutsche for a while now and one of the solutions put forth was a merger with a bank called CommerzBank. The leaders of both companies met and they even got support from politicians. In April, news broke that the merger talks had failed because over worries the risks and costs would be too great.
  5. Last week in France, Investment banking boss Garth Ritchie and others were arrested in France over illicit tax transactions.

Business Numbers

Deutsche Bank is already struggling as they are losing staff, losing market share, and bonuses are expected to be down at least 10% and further rounds of cost-cutting to come. Now imagine the impact if business costs start going up.

The banking industry works in a very simple way. They raise funds through large bonds at low-interest rates and then sell those funds to business and individuals thru products like loans and credit cards at a higher interest rate which results in a potential profit.

Earlier this year, Deutsche Bank tried raising money through several bonds. They paid 180bp (basis points) on a two-year bond and 230bp on a seven-year bond. Let me put this in context for you. There is a small bank in Spain called Caixabank which paid 225bp on a five-year bond and one of the larger banks in Spain, BBVA paid 130bp on a five-year bond.

  • How and why is a small bank in Spain getting a better deal on bonds than a huge bank in Germany?
  • Why is a large bank in Spain getting a bond 100bp cheaper than a German bank?
  • What does the market know that we do not?

Stock Price

Deutsche is also missing revenue projections which further hurt the business ability to survive and prosper. As you can imagine all of this news has a deep and lasting impact on its stock price which is in deep trouble. Before I share the stock price, I need to put this into the context of the market and the industry compared to the big economic crash of 2008. Below you will see a chart of some banking stocks from around the world with their peak price prior to the 2008 crash, the low of the 2008 recession and the price today:

As you can see from the above chart the banks in America have recovered from the 2008 recession by anywhere up 375% and JP Morgan has not only recovered its price in full but is constantly setting new high's. Ireland went bankrupt and had to be bailed out by the EU/IMF following the 2008 crash and even our national bank has more than doubled its price since 2008. The worst performing bank I could find was Societe Generale which has issues but is still hovering around its 2008 low price levels.

Now let's put that into the context of Deutsche Bank. Not only has the stock not rebounded but it is over 65% below its 2008 low at $6.75.

Technical Analysis

When you are dealing with the stock market, you also have people who study pricing through technical analysis. Experts look at things like FIB sequences, trend lines, and support levels. Support levels are a key metric for a stock failing because are looking to find where it will find support and potentially bounce higher.

We are very close to a key support level ($6.40) and if the price goes below this level, there is no saying exactly how low the price could go. At least one company expects Deutsche to fall below this support level, as several weeks ago UBS downgraded the stock to a sell order. This news was compounded last Friday when rating agency Fitch, downgraded their credit rating to BBB or two levels above JUNK status.

Other Information

I know you are likely reading this and thinking "this bank must have smart people in charge and surely they have a plan, right?" I am sure there is a plan and while they have kept their cards close to their chest, they have spoken in the past about the areas they foresee having growth for the company – they include business in Saudi Arabia, UAE, and Egypt. Do they strike you as countries which are stable and will offer steady and reliable growth? Do you have to think really hard to imagine how this could go potentially very wrong?

Questions

I believe there is at least a solid case Deutsche is in a LOT of trouble. So what are possible scenarios for the future? I will lay out the key questions below but I must stress that it's impossible to say for sure what exactly will happen. One of the key numbers to remember here is they have roughly €50 billion worth of derivatives.

  • How likely is it that the bank can turn things around and survive?
  • How likely is it the bank continues to run into trouble, its stock price fails and eventually fails?
  • If you think it is likely it will fail, the question becomes what will the fallout be? Who will be affected?
  • Will they be bailed out?
  • If so, by whom? The German government, ECB, IMF, the Federal Reserve?
  • What will the German government think? Some members recently spoke out saying they would block public money for the proposed merger? Will they block funds if it failed?
  • Will other banks be exposed and affected? Will they have to take losses?
  • Will those losses be spread around or will one or more bank be mainly affect?
  • Will this affect the sentiment of the banking sector and cause a panic?
  • If there are issues and it starts affecting the stock prices, what will be the impact on other industries?

Last Question

The last question revolves solely around the banks and the regulators? How secure are the other banks? We all hear about how banks are now put through "stress tests" but how much trust do you put in those results? How much trust do you have in the regulators?

I know this may make me sound like a conspiracy theorist to some but it's an honest question. The Fed is on public record saying they want to keep this economy strong as long as possible. If a bank did not perform strongly in a stress test or even barely failed one, do you think they would report it?

Can you imagine the pressure that body would come under to stay silent? Can you imagine the rhetoric they would face with questions like, "Are you really going to fail one bank? Do you know how many people will lose their jobs if you do that?" Am I saying this is happening? No, but can you really rule it out 100% as a possibility?

I urge you to ponder on these questions, do your own research and find YOUR answers.

Update: The most freaquently asked question I have received from this column / show is how much time do we have to prepare. This is an impossible question to answer, as it could fail tomorrow, next week or might be next year. However I want to provide you a potential date for your diary – July 24th. That is when Deutsche will release their next earnings report and if it comes in below expectations, it could cause a further drop in price casting more doubt over the future viability of the bank.

Please support Jonathon's weekly podcast which is exclusive to the Blaze Media and available for FREE. He offers a unique perspective by promoting America's Founding Principles and brings every issue back to a set of core principles which are always based around the laws of nature. You can find links to his show by clicking here or by searching for Freedoms Disciple on your favorite audio platform.

Survey: Where do you stand on these conspiracy theories?

Thought Catalog / Unsplash

Have you seen this survey on the most-believed conspiracy theories in America?

It's no surprise the survey has been getting so much attention. The results are actually a pretty disturbing.

Infographic: Belief in Conspiracy Theories in the United States | Statista

I decided to put together a quick survey of my own, with slightly different wording.

Up-vote the ones you agree with and down-vote the ones you disagree with.

I believe Lee Harvey Oswald killed JFK alone. However, I would not be surprised to find out the government sealed evidence that others were involved.

If by "deep state" you mean long-time Washington power brokers who are used to calling the shots and now feel threatened by Donald Trump not listening to their advice or council — yes, I do believe that many people like that are working against him and his administration.

Whether alien bodies are in Area 51 or not, I do believe the government knows more about UFOs than they have told us.

I do not believe the U.S. government was involved in 9/11, but as we know, NSA advisor Sandy Berger was caught destroying documents from the national archives related to both Bush and Clinton. All U.S. administrations have been to close to the Saudis, and the Saudis were involved in 9/11 at some level.

I believe the climate is always changing — it's natural. I would be willing to accept that man MAY play a role in this. But I do not believe in the solutions currently being discussed, nor do I believe the intention of most political activists are pure.

Any talk of the Illuminati provides the true dangers to man's freedom — like very powerful NGOS and men like George Soros — a perfect cover.

The U.S. government has done some horrible experiments on people and land — I also suspect they will do more things in the future. But I do not believe in the systematic spraying of chemicals using chemtrails.

The moon landing was real, but I see a time coming when people will not be able to trust their eyes due to deep fakes.

What do you think?

Let me know in the comments section below.