1. Dec 24: https://www.reuters.com/article/us-...o-convene-amid-wall-street-rout-idUSKCN1ON0WG 2. Late Sept, 2019: https://www.reuters.com/article/us-...hit-fed-limits-roiling-us-repos-idUSKBN1WG439 https://www.bloomberg.com/news/arti...h-for-fourth-day-as-funding-markets-stabilize 3. December 2019 Quid pro quo. Next step is offloading some bullshit debt to "low- and moderate-income households and neighborhoods", securitizing that, and selling it to the Fed when SHTF. Going to the moon, forever.
Ten years ago, I would have said you are nuts, but I think you are correct......and these manufactured crises' seem to occur anytime bond yields start rising meaningfully.....every six months or so, we get some manufactured "crisis" that drives bond yields lower and craters stocks....and then voila, like magic, once the Fed promises that the easy money spigot isn't going anywhere, stocks rip higher. 12 months ago, we were told by Powell that the balance sheet was on "autopilot", and then over the last 4 months the Fed has added the equivalent of $550,000 per day since the birth of Christ to their balance sheet. Really a farce at this point.
LOL, do you think exchanges were made for retail? Rules seldom change for betterment of retail until they jumping out of the windows 30 stories high or killing brokers. And of course there is politics. https://www.washingtonpost.com/wp-srv/politics/special/whitewater/stories/wwtr940527.htm
Just on time, our friend at CC covers historical deleveraging which points to a roaring 2020s. I watched this guy. The reality is that this is JPM threatening the Fed showing how they can rape the market if they want. The Fed is stuck. So... Going to the moon.
Wow, you watch this guy as well??? . He has a very good way of presenting information. This is why I started my thread about the repo market a couple of weeks ago. It seemed like a big deal that nobody is talking about. I dont doubt that the FED will fix any problem that needs to be fixed, but the implications of all of this might start to come to the surface. It's going to get very interesting in the new year.
I'm looking at alternative asset classes, I think both bonds and equities are toast. Most systems have limiting factors, some take longer to hit, but no matter how much you push up a variable trying to preserve the system, that variable has diminishing returns.
I am watching him again and I think his conclusion is CORRECT with respect to USD. This "doom vortex" will formalize MMT. The 7 trillion that is supposed to roll over is government BS. There is no way the economists are going to let go of this.