Yeah TOTAL NUTS!! Yesterday's Fed repo injection hit new records.$500 billion in a three-month repo plus another $500 billion in a one-month repo in addition to $175 billion in overnight repo and $45 billion in two-week term repo.Lets not forget they are also buying 60 billion/month in short term treasuries.Now they are buying the entire bond maturity yield curve from 3 month t-bills to 30 year bonds.This is UNPRECEDENTED.Earlier in the week the 30 year bond market froze up with no takers so the Fed had to come in and buy the bonds to ensure no failed auction.Yet another record.Despite all the Fed purchases of treasuries,bonds sold off with the 10 year yield rising from its record lows of 0.318% to hit intraday highs of 1.01% yesterday.A whole new nightmarish scenario where stocks,corporate bonds and government treasuries are selling off as investors flee the major asset classes and move to cash thus the US dollar rise with dollar index back up to 98.15.Irony that dollar is rising yet the Fed is printing trillions daily to pump into markets then again Dollar is the reserve currency so they get away with it for now.Fed has no choice but to buy all these bonds.Forget the carnage of the stock market and corporate bond market,distress in the government treasury market would be the ultimate cataclysm as its by far the largest asset class in the world and threatens the very solvency of the United States government.Eventually,this bond market will unravel completely but Fed delaying the inevitable.

Interesting price action in the stock market.Before market open futures hit limit up and Dow opened over 1,000 points up but sold off massively to retrace almost all these gains despite the over 1.2 trillion repo injection before market open explained above.I was lucky to short that first decline.Then the market meandered with large up and downswings then Trump went to the airwaves and announced a national emergency and promised to bailout everyone ie the oil industry by pledging to buy more oil for the strategic oil reserves,freeze interest payments on the 1.5 trillion student loan debt monstrosity among other measures.So where is the government going to get this money for bailouts.Simple,the treasury will issue more bonds and the Fed will buy them creating even more fiat dollars to buy.Due to the Trump declarations,all the major indices moved up about 7% in the last 30 minutes of trading.Now that's just nuts.There were several 5% swings in the indices.Unprecedented volatility.Dow had its single biggest day gain on Friday closing up 1985 points after suffering its biggest point loss in history down 2352 points the prior Thursday.As usual the Plunge Protection Team (PPT) used the repo trillions to buy back the market and shorts were forced to cover fueling the rise even more.PPT likes to buy the market at Friday's close to give some sense of confidence over the weekend so that markets dont panic sell on Monday.PPT wants to ensure Dow doesnt drop below 20,000 otherwise a new wave of panic selling will result.Even Dow 15,000 is a bubble and Dow should fall to at least 10,000 to have any semblance of fair value.

Now the Fed is under crazy pressure to cut rates again next week by 75 or even 100 basis points taking the Fed funds rate to zero.Expect even larger trillion dollar repo dumps next week.There is also talk that the Federal Reserve Act should be changed by Congress to give the Fed authority to buy corporate bonds and even stocks like they do in Japan and Switzerland.Some quarters are talking of government stop collecting taxes to give a bailout to the populace and Trump is actually proposing to scrap payroll tax for the rest of the year.So if that happens,how does the government fund itself.Simple,Fed just prints the money to fund government.That ludicrous policy is called Modern Monetary Theory (MMT) and some major economists and even some in the Bernie Sanders camp are advocating for it.

By the way HongKong is considering giving every adult citizen 10,000 HongKong Dollars (1,200 USD) and Australia is to give 750 Australian Dollars to 6.5 million citizens as a coronavirus bailout.That is what is known as helicopter money.

Developed nations are living in lalala land

TRADING HALTED IMMEDIATELY AFTER MARKET OPEN AS S&P 500 OPENS DOWN 8.14%.

Third time in the last 7 days



I took a short position on Friday and waiting to collect serious $$$$$ once markets resume after 15 minutes

Shorts are killing it especially those using leveraged derivative trades.

As they say,wealth isnt destroyed but transferred from one entity to another.Panicked longs transferring wealth to shorts and greatest wealth
transfer occurs in panicking crashing markets.

The best thing happened is that Trump has given up on talking up the market. Let the market take care of itself. It will now find its bottom. The market had become blackhole

Just imagine the magnitude of the catastrophe.98% of all the gains in the stock market ever since Trump was inaugurated in January 2017 is gone.38 months (3 years and 2 months) of gains evaporated in 3 weeks.By the end of the week all gains during the Trump Presidency and even more will be lost.

There is talk of closing the markets to prevent further destruction.Don't see any other way out other than Fed outright buying stocks for just nominal gains illusions.Even the Wall Street banks have halted buying their own stocks so Fed may have to step in here and just shamelessly buy stocks outright just like in Japan and Switzerland but this needs Congressional approval.