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The holiday season is supposed to be a time of distraction — football, family, and leftover turkey — but the financial markets never sleep. While Americans were carving generic-brand turkeys and stretching leftovers, massive red flags exploded across Treasury markets, repo facilities, private credit, and systemic risk indicators. What you're about to read is the full, unfiltered transcript of a viral emergency economic alert that dropped right before Thanksgiving 2025 — one that the mainstream media completely missed because of "news fatigue." This is the raw truth about Kevin Hassett, basis trades, SOFR spikes, BlackRock failures, and the Trump family crypto grift that could destabilize the entire global financial system.
Kevin Hassett: From COVID-Zero Prophet to Potential Fed Chair?
The rumor mill in Washington is exploding: Kevin Hassett, Donald Trump’s former National Economic Council director, is now the leading contender to become Federal Reserve Chair in 2025. Yes — the same Kevin Hassett who claimed in May 2020 that his economic model predicted COVID deaths would hit zero in ten days. The same Hassett who was a vocal Brexit cheerleader (ask Britain how that aged). The same Hassett who went on national television claiming:
“President Trump is creating a golden age for the American economy… We’ve got two quarters in a row of about 4% growth… inflation is way, way down… Turkey’s down 19%, gas prices are down… and yet the liberal media says inflation is Trump’s fault.”
Standard White House talking points? Sure. But this is the man reportedly being eyed to run the world’s most powerful central bank.
His résumé? Light. After leaving the Trump administration, he took a position at a conservative think tank. That’s it. No heavyweight academic credentials. No decades of monetary policy experience. Just loyalty — and a proven track record of being spectacularly wrong on major calls.
Trump originally wanted to stack the Fed with ultra-loyalists. The only realistic path for Hassett would be if Jerome Powell steps down as Chair but remains a Governor, opening the top spot. That’s the same chess game that fueled the desperate attempt to remove Fed Governor Lisa Cook — they needed an open seat.
Why Lisa Cook Matters: The Fed Governor Sounding the Alarm on Systemic Risk
Dr. Lisa Cook, chair of the Federal Reserve’s Financial Stability Committee, just issued a dire warning about a threat we’ve been tracking for months: basis trades.
What Are Basis Trades and Why Are They a Ticking Time Bomb?
- Massive hedge funds and financial institutions are placing highly leveraged bets in the U.S. Treasury market
- These trades depend on razor-thin margins and predictable interest rate behavior
- When Treasury yields move unexpectedly, these positions can blow up fast
- Because of extreme leverage, a few big losses can cascade into systemic risk
- This is not theoretical — we saw SOFR (Secured Overnight Financing Rate) repeatedly breach the Fed funds ceiling in November 2025
When SOFR spikes above the Fed’s target range, it means one thing: the Federal Reserve has lost control of short-term interest rates. The market is demanding a risk premium the Fed cannot suppress.
Repo Market Chaos: The Fed’s Emergency Cash Facility Is Dry
The Standing Repo Facility — the Fed’s emergency stockpile of liquidity — is completely drained. Why?
- The Treasury has been pulling cash to service exploding U.S. debt
- Reverse repo usage has plummeted as institutions hoard collateral
- Overnight funding markets keep seizing up — exactly what happened two days before Thanksgiving 2025
Those vertical spikes you see on repo charts? That’s the Fed frantically injecting billions in emergency liquidity because private markets refuse to lend to each other at the Fed’s posted rates.
This is not normal. This is the financial system flashing cardiac arrest warnings.
Private Credit Meltdown: The Subprime Crisis 2.0 No One Wants to Talk About
Banks stopped lending to anyone who wasn’t pristine after 2008 regulations. Who filled the void?
Non-Bank Financial Institutions (NBFIs) — private credit funds now holding trillions in loans.
- Many of these loans are junk or subprime
- Borrowers are paying teens to low-20s interest rates
- As the labor market cracks and credit card delinquencies explode, defaults are surging
- These loans are packaged into collateralized structures — sound familiar?
BlackRock’s $150 Million Loan Goes to $100,000 in Assets
The world’s largest asset manager just wrote off 100% of a $150 million private credit exposure. The bankrupt borrower had less than $100,000 in assets. One of the worst underwriting jobs since Enron.
And it gets worse: one of BlackRock’s flagship private credit funds has been failing internal stress tests for over a year and is now offering investors zero fees just to stop redemptions.
This is 2007-style denial in real time.
The Credit Market Is the Real Economy — Stocks Are Always Last to Know
Forget the S&P 500. The credit markets are the EKG of the economy.
- Spiking repo rates = heart arrhythmia
- Private credit blowups = mini-strokes
- SOFR breaches = full-blown seizures
The stock market will be the last asset class to figure it out — just like in 2008.
Trump’s Crypto Grift: The Stablecoin Treasury Takeover Plan
Over the summer, explosive reporting exposed the endgame: using presidency power to funnel Treasury purchases through Trump family crypto ventures.
Key revelations from the new House Democratic Judiciary Committee report:
- Trump family launched their own stablecoin backed by dark money from foreign sources
- Stablecoins are already the 17th-largest holder of U.S. Treasuries
- Proposed crypto legislation would block the Fed from issuing a CBDC
- Only private stablecoins (like the Trump coin) would be able to purchase future Treasury debt
- This turns the U.S. Treasury market into a money-laundering and hedge-fund bailout vehicle
Hedge funds running basis trades? They’ll buy TrumpCoin. Foreign actors washing illicit funds? TrumpCoin. The entire Treasury market could become a private Trump family ATM.
Why Who Runs the Fed Actually Matters More Than Ever
You need serious, independent professionals — not loyalist lightweights who think Brexit was smart and COVID would magically disappear.
- Kevin Hassett has no business being a file clerk at the Fed, much less Chair
- Appointing him would be the final nail in Federal Reserve independence
- The Treasury Secretary pick (reportedly the “world’s worst hedge fund manager” Scott Bessent) is not a punchline — it’s a five-alarm fire
The Big Picture: A Perfect Storm of Systemic Risk in 2025
Here’s what’s converging right now:
- Exploding leveraged basis trades in Treasuries
- Drained Fed emergency liquidity facilities
- Private credit and subprime lending implosion
- SOFR repeatedly breaching the Fed funds ceiling
- A coordinated political effort to turn the U.S. Treasury into a crypto grift machine
This isn’t fearmongering. This is what the data is screaming while most of America is distracted by holiday sales and football.
The brief Thanksgiving reprieve is over. These stories will dominate headlines in the coming weeks and months — but you heard the full breakdown first, unfiltered and commercial-free.
The economy waits for no one — and neither should your awareness of the massive risks now baked into the system.