The fed has been trying to fend off the liquity crisis since September last year to no avail. There appears to be both horizontal and vertical collapse of overnight lending between banks which is now becoming systemic. Since US banks recapitalized after the financial crisis of 2008 and haven't had their capital buffers obliterated by negative interest rates it is curious where this pressure is coming from. The size of the repo action suggests very big banks are in trouble. My guess is European banks with subsidiaries in the US. The fact that the ECB didn't cut rates is indicative of the pain negative interest rates are inflicting on the banking sector and by extension the economy. ECB and BOJ are in a pickle...they can't ease on rates, monetary engineering isn't of much help in this type of crisis and there is no room for fiscal stimulus (sales tax hike for Japan cratered the economy and EU has a brexit sized budget hole to plug). The amount of the repo cash that eventually makes it to the market isn't significant unlike QE.

FED 1.5 TRILLION LIQUIDITY PUMP JOB FAILS.GLOBAL MARKETS CONTINUE TO TANK



S&P 500 dropped 9.51% yesterday.US Dow stock futures down 652 today already.In today's trading,Japan's Nikkei is down 7.97%,Australian market down 8%,South Korea down 7.86% as I write this.Asian market action today a harbinger of the disaster that may engulf US markets today when it opens.

Now some in the US are talking of its citizens to stop paying taxes entirely as a bailout.Then there are others who subscribe to the ludicrous policy called Modern Monetary Theory (MMT) where the government just prints all the money needed to finance all their operations.No need to tax people.Zimbabwe and Venezuela style banana republic shenanigans

300 years ago in 1720 it was the South Sea bubble burst. As Sir Isaac Newton observed "I can calculate the movement of the stars, but not the madness of men"

CBs are promising unlimited liquidity, short-selling bans galore. Markets starting to calm down.

Mixed day for Asia, Europe is mostly in the green as will the US when it opens. After the biggest sell day for Europe and the US a bounce is in order before selling resumes next week if the weekend doesn't offer constructive news. CBs are dancing themselves lame before the main dance.

Haha.Why flee.In fact I am deep into US markets and even deeper now.I am SHORTING THE HELL OUT OF US STOCKS!Never have I made so much money investing than I have done in the last one month.I knew the Western markets were rigged many years ago and took advantage of it.I was mostly long when the bubble of central bank money printing was being pumped knowing it was all fake and was actually preparing for when the bubble would pop.Now I have changed my strategy to short all bounces and the $$$$$$ made is

Far more money is made in bear markets than bull markets as bull markets slowly climb the stairs and bears jump off the window.One just have to understand the dynamics of Western markets and know how to play it.

I am in Kenya by the way.I wouldnt want to be in the West when this bubble pops