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Old 09-23-2019, 05:35 AM
Danny B Danny B is offline
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Join Date: Oct 2012
Location: L.A. Ca.
Posts: 4,849
Failures mounting,,confidence melting

"looking at why cash failed to move from banks’ accounts at the Fed into the repo market, where banks and investors borrow money in exchange for Treasuries to cover short-term funding needs."
and is trying to figure out why they did not hand out their cash to other banks that were in desperate need for liquidity," "why they refused to do so even though any such loan would be perfectly collateralized by money-good securities such as Treasuries, MBS and Agency debt and they refused to do it when repo rates had soared as high as 10%, "
"one possible explanation: the banks that should have lent out cash did not do so because they were afraid that i) the borrower would not be able to return the cash on the next day and ii) any potential failure in the banking system would lead to a collapse of the repo system, potentially making their ultra-safe collateral, impaired if not worthless. Hence, their desire to hold on to cash... and dear life."
Confidence is replaced by fear.

Reportedly, volatility is going to go crazy in October.
"stock volatility has been 25% higher in October on average since 1928, according to Goldman."
ALL the big crashes have hit in October.

Thomas Cook has collapsed leaving thousands stranded.
The ECB will have to mutualize all sovereign debt.
This means screwing over the Germans. And, how do they p[land to screw the Germans?
Armstrong, "In Germany, the Federal Minister of Research has said that the introduction of a special tax on carbon dioxide is virtually certain. Global warming research is funded by governments in order to raise taxes. They refuse to fund any research to the contrary because this is all about raising taxes. Germany will soon join Canada who imposed a $1,000 tax per home. Of course, where does this money go to stop their claimed global warming? "

Major Bank to Governments: Go on, Give us your Carbon Tax Money…
Mobilizing the Billions and Trillions for Climate Finance
Climate change is potentially a $7 Trillion dollar money maker for bankers
A carbon tax is the nudge the world needs | Financial Times
What a surprise.

Armstrong; "The constant intervention of the Federal Reserve into the REPO market is the result of a global dollar shortage on a monumental scale. There is a liquidity crisis unfolding as CONFIDENCE is collapsing in Europe and Asia. The Federal Reserve has been intervening into the REPO market in a desperate effort to maintain its lower target on interest rates."
"Despite the fact that early in 2019 the headlines were that foreign governments were dumping US debt spinning this into stories that the dollar would crash. In reality, selling of US debt at that point in time was an effort to stop the dollar’s rise. However, as the world economy continues to implode going into the bottom of the business cycle as measured by the Economic Confidence Model, exactly the opposite has been taking place."
"As more and more US debt is taken up overseas as a hedge against the rising risk of the punitive sanctions of canceling foreign currencies as Christine Lagarde is preparing to take charge of the European Central Bank in October, the panic into the dollar assets is removing US debt from domestic holdings resulting in a LIQUIDITY CRISIS beyond anything you will find in the traditional economic textbooks."
"So welcome to the new world where economic theories are crumbling before our eyes and falling to the floor as dust in a world that no longer exists. We are entering a new period of reality where whatever you thought was happening may prove to be the opposite."

Armstrong, "It is like a trader who cannot understand the thinking process of a non-trader, and likewise the non-trader cannot understand the actions of a trader. Then there is the institutional trader. He has to answer to a board that has no concept of trading and they are supposed to oversee the trading division."

Bloomberg writes about "helicopter money"

9/23 ECB’s new interest rate policy “as long as it takes” huge failure already – Mish
They just can't understand why investors run away from hyper-sonic printing presses.
9/23 Booming securitized loan market has echoes of financial crisis, BIS warns – Reuters
We've seen this movie before. Hopefully, this time the bankers will be jumping from TALL buildings.
9/23 South Korean exports collapse 21% – biggest drop in a decade – Zero Hedge
9/22 Massive price reversion may be days or weeks away – Technical Traders
9/22 How the Fed’s funding struggles highlight the fragility of Wall Street confidence – MW
9/22 Look out bears! Fed new QE now up to $165 billion – Phil’s Stock World
9/22 Massive price reversion may be days or weeks away – Technical Traders
9/22 How the Fed’s funding struggles highlight the fragility of Wall Street confidence – MW

It seems that hard times have created quite a market for sugar-daddies,

9/19 IBM will soon launch a 53-qubit quantum computer – Tech Crunch
9/23 Google’s “quantum supremacy” to render all secrets breakable – Summit
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