Wazua
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First World Markets Shenanigans
Rank: Veteran Joined: 9/18/2014 Posts: 1,127
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slick wrote:FASTEST 20% DROP IN THE DOW IN HISTORY  Now market demands Fed to cut rates by a whooping 75 basis points next week and if they do,rates will be at 25 to 50 basis points.Fed currently doing the fastest rate of liquidity injection in history via the repo market.There is now some discussion that Fed just goes ahead and directly buys stocks and corporate bonds in a US corporate bond market thats freezing up Bank of England cut rates by 50 basis points to reach a measly 25 basis points European Central Bank expected to cut rates even more negative tomorrow.its currently at minus 0.5% which is ridiculous but will cut more and inject even more liquidity bigger than they have ever done and buy more government and corporate bonds Peoples Bank of China also doing repo liquidity injections like crazy Bank of Japan is actively buying stocks via purchasing ETFs. And it seems to be getting much worse hell but a short sellers heaven I think the selling of the Dow is overdone. Too fast too soon. Only holding one short position which I'm looking to close before the week ends. Scouting for long plays which will probably be fast and furious as the tanking that preceeded it. Europe and Japan comprise my main short positions as I don't expect them to survive a recession. My advice is stay away from bonds entirely. The main purpose of the stock market is to make fools of as many people as possible.
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Rank: Member Joined: 6/1/2017 Posts: 288
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lochaz-index wrote:slick wrote:Ericsson wrote:slick wrote:FASTEST 20% DROP IN THE DOW IN HISTORY Now market demands Fed to cut rates by a whooping 75 basis points next week and if they do,rates will be at 25 to 50 basis points.Fed currently doing the fastest rate of liquidity injection in history via the repo market.There is now some discussion that Fed just goes ahead and directly buys stocks and corporate bonds in a US corporate bond market thats freezing up Bank of England cut rates by 50 basis points to reach a measly 25 basis points European Central Bank expected to cut rates even more negative tomorrow.its currently at minus 0.5% which is ridiculous but will cut more and inject even more liquidity bigger than they have ever done and buy more government and corporate bonds Peoples Bank of China also doing repo liquidity injections like crazy Bank of Japan is actively buying stocks via purchasing ETFs. And it seems to be getting much worse hell but a short sellers heaven The Central banks should not intervene in the markets. The markets will self correct themselves. @Ericsson.Yes,ideally in free markets central banks shouldn't intervene but central banks have been intervening perpetually in markets making problems far worse.These market bailouts and liquidity injections make problems far worse as any liquidity injection just creates more debt.If you research the current fiat debt based fractional reserve banking monetary system,all money is created from debt.If you think banks make loans from customer deposits then you are clearly duped.The banks create money from nothing and loan out at interest expands the money supply to ridiculous levels.No fiat debt based system has ever survived and all fiat currencies collapse to zero value.100% guarantee perfect record of fiat collapse throughout history.From Ancient Greece,Roman Empire,Chinese dynasties,1770s USA to Weinmar Germany,Zimbabwe,Venezuela all fiat currencies implode.Its highly possible the current Western style fiat system will unravel in similar fashion. All boom and burst cycles are caused by central banks.The 1929 crash,the dotcom burst,the 2008 real estate crash and all other US recessions were all caused by the Fed.Central banks will intervene and print vast money to save the system and inevitably wont work and may cause hyperinflation. Central banks cant just keep creating money from nothing to bailout failing institutions.These firms should be allowed to fail and clean out the excesses.16% of firms in the S&P 500 are zombie companies kept alive by Fed cheap money and should be allowed to collapse.The entire US shale oil industry should just be allowed to fail as their business model is unsustainable as their oil production costs are higher then oil prices.In 2008,all the Wall Street Banks should have allowed to fail even JP Morgan and Goldman Sachs as they duped investors with subprime loans and bogus Mortgage Backed Securities and Collateralized Debt Obligation (CDO) derivatives.It was a criminal act that these banks did during the housing bubble and should have been allowed to collapse but were bailed out and are now engaged in even more criminal excess in the corporate bond market.They should all fail then system starts afresh with more honest institutions.The collapse will be painful but its like a drug addict should suffer a painful weaning off drugs for longer term gain but central banks just keep pumping more monetary heroin.Inevitably the financial drug addict will overdose and it seems the financial system has reached that inflection point Boom and burst cycle extends beyond the existence of central banks. CBs happen to be the perfect boogeymen for this gig since they've taken credit for the boom, the blame for the burst will also be theirs. It is a case of the tail wagging the dog. Spot on @lochaz-index.They create bubbles with their cheap money printing policies that inevitably burst and to "solve the burst" they create even more money for bailout creating an even bigger bubble that also burst and print even more and create a subsequent larger bubble that bursts.Dotcom bubble was created by Fed easy money policies and when it burst,they printed even more money that created the housing bubble that also burst and to mitigate the housing bubble they created trillions for bailouts now causing the biggest bubble in history thats now unravelling.Dont believe me,listen to Scott Minerd, Guggenheim Partners co-founder and Guggenheim Global chief investment officer speak at Bloomberg of this central bank bubble blowing shenanigans and calls the markets a ponzi scheme.Guggenheim Partners is one of the largest global investment and advisory financial services firm with 270 billion USD of assets under management so he is a guy to take seriously  Contrarian Investor and Trader.Advocate of free markets,limited government interference in the economy and sound money
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Rank: Member Joined: 6/1/2017 Posts: 288
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US STOCK FUTURES TRADING HALTED AFTER HITTING 5% LIMIT DOWN.MARKET EXPECTED TO OPEN DOWN 7% HITTING CIRCUIT BREAKER SECOND TIME THIS WEEK THUS HALT TRADING FOR 15 MINUTES  This is just unprecedented in history.Things are THICK  Contrarian Investor and Trader.Advocate of free markets,limited government interference in the economy and sound money
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Rank: Member Joined: 6/1/2017 Posts: 288
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Rank: Member Joined: 6/1/2017 Posts: 288
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Rank: Member Joined: 3/8/2018 Posts: 507 Location: Nairobi
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$500,000,000,000
Yes. That's USD.
Being printed.
"On March 12, 2020, the Desk will offer $500 billion in a three-month repo operation at 1:30 pm ET that will settle on March 13, 2020."
We're watching a liquidity crisis in real time.
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Rank: Member Joined: 6/1/2017 Posts: 288
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rwitre wrote:$500,000,000,000
Yes. That's USD.
Being printed.
"On March 12, 2020, the Desk will offer $500 billion in a three-month repo operation at 1:30 pm ET that will settle on March 13, 2020."
We're watching a liquidity crisis in real time. Just pump the money.Just print the $$$$$$ and dump into the market  .We dont hyperinflate since we are the reserve currency and sole superpower.Stocks briefly rebound then start to sell off again.  Contrarian Investor and Trader.Advocate of free markets,limited government interference in the economy and sound money
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Rank: Veteran Joined: 11/13/2015 Posts: 1,654
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This is CRAZY** $500b a day for 3 days is more QE than the last five years combined. WTF!!!
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Rank: Member Joined: 6/1/2017 Posts: 288
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wukan wrote:This is CRAZY** $500b a day for 3 days is more QE than the last five years combined. WTF!!! Na bado.Just warming up.You wait and see.Markets have already reversed almost all the gains after the Fed announcement.They want more $$$$$ but it wont help this time around like prior years since Covid-19 doesnt respect money printing.In fact if you combine liquidity injections of Fed,European Central Bank,Bank of Japan,Bank of England and Peoples Bank of China in the last 5 years its more like 5 trillion. Contrarian Investor and Trader.Advocate of free markets,limited government interference in the economy and sound money
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Rank: Member Joined: 6/1/2017 Posts: 288
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slick wrote:wukan wrote:This is CRAZY** $500b a day for 3 days is more QE than the last five years combined. WTF!!! Na bado.Just warming up.You wait and see.Markets have already reversed almost all the gains after the Fed announcement.They want more $$$$$ but it wont help this time around like prior years since Covid-19 doesnt respect money printing.In fact if you combine liquidity injections of Fed,European Central Bank,Bank of Japan,Bank of England and Peoples Bank of China in the last 5 years its more like 5 trillion. CNBC article below highlights  https://www.cnbc.com/202...raders-await-trump.html
"The major averages got a brief respite after the Fed announced it will ramp up its overnight funding operations to more than $500 billion on Thursday. It will then offer more repo operations totaling $1 trillion on Friday. The Fed also expanded the types of securities it would purchase with reserves.
However, stocks quickly traded back towards their session lows as investors awaited more aggressive measures to support the economy amid the virus outbreak."So markets want more.1.5 trillion in 2 days isnt enough.Now its just getting ridiculous these mammoth liquidity injections that seem to have no effect.There are also whispers that the Fed should just outright buy stocks just like the Swiss Central Bank and Bank of Japan.Once you get to the level where central banks buy stocks,its a banana republic Contrarian Investor and Trader.Advocate of free markets,limited government interference in the economy and sound money
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