Wazua
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First World Markets Shenanigans
Rank: Elder Joined: 12/4/2009 Posts: 10,804 Location: NAIROBI
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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 The Central banks should not intervene in the markets. The markets will self correct themselves. Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Member Joined: 6/1/2017 Posts: 288
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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 Contrarian Investor and Trader.Advocate of free markets,limited government interference in the economy and sound money
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Rank: Member Joined: 5/15/2019 Posts: 687 Location: planet earth
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Slick, You are acting like you are surprised all these things are happening  . They were long in the making, carefully put together over a very long period. I knew the fix was in after the 2007/8 crisis with the ratings cookings. Then almost collapsed in shock when the Fed introduced bizarre new terms that flew in the face of basic economics such as "stress testing" of banks and "stimulus spending"  .The fix has long been in. My guess is they want to implode the global economy over the next decade, maybe more, introduce radical new laws that curtail civil liberties, then give the UN real teeth. In the final analysis, it all boils down to sheer plain old hard work and dogged persistence. Nothing more, nothing less!!
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Rank: Member Joined: 6/1/2017 Posts: 288
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amorphous wrote:Slick, You are acting like you are surprised all these things are happening . They were long in the making, carefully put together over a very long period. I knew the fix was in after the 2007/8 crisis with the ratings cookings. Then almost collapsed in shock when the Fed introduced bizarre new terms that flew in the face of basic economics such as "stress testing" of banks and "stimulus spending" .The fix has long been in. My guess is they want to implode the global economy over the next decade, maybe more, introduce radical new laws that curtail civil liberties, then give the UN real teeth. @amorphous. Who said I am surprised.I have been knowing these things were happening for years and no surprise thats events are unravelling now. Its long overdue for the great unwind to happen.I thought it would happen in 2010-2012 European sovereign debt crisis and 2016 Industrial Recession but central banks printed themselves out of those prior crisis.Cant print themselves out of coronavirus.Problem isnt the virus.Virus is simply| the pin that is popping the ludicrous bubbles that have been building up for decades and especially after the 2008 crisis Contrarian Investor and Trader.Advocate of free markets,limited government interference in the economy and sound money
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Rank: Member Joined: 5/15/2019 Posts: 687 Location: planet earth
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Even corona is a fix. A mere 10000 or less die from flu like symptoms (influenza kills 100's odf thousands in the US alone each year but no scaremongering there!) and all of a sudden entire nations are on lock down . I suspect the UN will be given teeth regarding "pandemic control" when all the dust settles. Then "financial control" once the global economy is imploded in due course. The Hegelian dialectic is the oldest trick in the book..surprised the masses fall for these schemes every single time In the final analysis, it all boils down to sheer plain old hard work and dogged persistence. Nothing more, nothing less!!
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Rank: Member Joined: 6/1/2017 Posts: 288
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amorphous wrote:Even corona is a fix. A mere 10000 or less die from flu like symptoms (influenza kills 100's odf thousands in the US alone each year but no scaremongering there!) and all of a sudden entire nations are on lock down . I suspect the UN will be given teeth regarding "pandemic control" when all the dust settles. Then "financial control" once the global economy is imploded in due course. The Hegelian dialectic is the oldest trick in the book..surprised the masses fall for these schemes every single time I think coronavirus is a different piece of cake altogether.It has a case mortality rate of 3% while flu is 0.1% and far higher R nought ie transimissibility than the flu.If covid-19 infects millions over the next few months as some scientists even think if could infect 70% of the global population then it could potentially kill millions. Regardless of whether Covid-19 causes the global recession or not,a recession was inevitable.The world has lasted 12 years without a recession (the longest lasting expansion in modern history) and recession was overdue and we were living on borrowed time.Central banks have been delaying the recession by injecting liquidity in every slight downturn in markets and inevitably a black swan would have appeared that central bank money printing couldnt mitigate against Contrarian Investor and Trader.Advocate of free markets,limited government interference in the economy and sound money
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Rank: Member Joined: 5/15/2019 Posts: 687 Location: planet earth
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slick wrote:amorphous wrote:Even corona is a fix. A mere 10000 or less die from flu like symptoms (influenza kills 100's odf thousands in the US alone each year but no scaremongering there!) and all of a sudden entire nations are on lock down . I suspect the UN will be given teeth regarding "pandemic control" when all the dust settles. Then "financial control" once the global economy is imploded in due course. The Hegelian dialectic is the oldest trick in the book..surprised the masses fall for these schemes every single time I think coronavirus is a different piece of cake altogether. It has a case mortality rate of 3% while flu is 0.1% and far higher R nought ie transimissibility than the flu.If covid-19 infects millions over the next few months as some scientists even think if could infect 70% of the global population then it could potentially kill millions.Regardless of whether Covid-19 causes the global recession or not,a recession was inevitable.The world has lasted 12 years without a recession (the longest lasting expansion in modern history) and recession was overdue and we were living on borrowed time.Central banks have been delaying the recession by injecting liquidity in every slight downturn in markets and inevitably a black swan would have appeared that central bank money printing couldnt mitigate against Slick, If you believe this then I have a AAA S&P rate Subprime CDO worth trillions that I would love to sell to you. A paltry 4000 deaths in a couple of months so far, well over 50,000 and counting "cured" of the so called Coronavirus. If more than 50k people "die" from this fake "pandemic" after all this dust has settled, I will give you 1 million kshs pesa tasilimu in clean crisp notes as your reward, sawa? In the final analysis, it all boils down to sheer plain old hard work and dogged persistence. Nothing more, nothing less!!
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Rank: Member Joined: 6/1/2017 Posts: 288
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amorphous wrote:slick wrote:amorphous wrote:Even corona is a fix. A mere 10000 or less die from flu like symptoms (influenza kills 100's odf thousands in the US alone each year but no scaremongering there!) and all of a sudden entire nations are on lock down . I suspect the UN will be given teeth regarding "pandemic control" when all the dust settles. Then "financial control" once the global economy is imploded in due course. The Hegelian dialectic is the oldest trick in the book..surprised the masses fall for these schemes every single time I think coronavirus is a different piece of cake altogether. It has a case mortality rate of 3% while flu is 0.1% and far higher R nought ie transimissibility than the flu.If covid-19 infects millions over the next few months as some scientists even think if could infect 70% of the global population then it could potentially kill millions.Regardless of whether Covid-19 causes the global recession or not,a recession was inevitable.The world has lasted 12 years without a recession (the longest lasting expansion in modern history) and recession was overdue and we were living on borrowed time.Central banks have been delaying the recession by injecting liquidity in every slight downturn in markets and inevitably a black swan would have appeared that central bank money printing couldnt mitigate against Slick, If you believe this then I have a AAA S&P rate Subprime CDO worth trillions that I would love to sell to you. A paltry 4000 deaths in a couple of months so far, well over 50,000 and counting "cured" of the so called Coronavirus. If more than 50k people "die" from this fake "pandemic" after all this dust has settled, I will give you 1 million kshs pesa tasilimu in clean crisp notes as your reward, sawa? Haha. AAA S&P rate Subprime CDO were the bogus junk products that the rating agencies were giving triple AAA rating while they were worthless during the housing bubble that caused the 2008 meltdown when they collapsed.Now the madness is in corporate debt with leveraged loans,junk debt and CLOs.Yet again the rating agencies are misrating them as I explained in an earlier post and these CLOs are just as worthless as CDOs of the housing bubble.They CLOs,junk debt and sub-prime leveraged loans to undeserving corporates will blow up even more disastrously than the housing bubble products.Lets not forget the overleveraged shadow banking system.The US shale oil junk bonds are already in extreme distress and the corporate bond market is frozen up.Dont believe me,check out this Bloomberg interview Well nobody knows where Covid-19 will finally play out but its definitely more serious than common flu.Do you think the Communists in China would lockdown entire cities and quarantine hundreds of millions knowing it will massively impact their economy for just a flu.The Communist government knows they only stay in power due to high economic growth and wouldnt have risked closing down the economy just for a flu.Also,death toll is much higher than the 4600 stated.Does anyone really believe Chinese figures that they are deliberately downplaying?Disease is still new and needs several months to really mature and peak and after this time period expect far more deaths.Regardless the virus has popped the biggest asset,debt and fiat currency bubble in history and I dont see how things can return to normal.The recession will play itself out regardless It gets much worse.Yesterday marked a new turn for the worst.In prior days stocks and corporate bonds have been selling off massively as cash moved from these distressed assets into US government bonds as a safe heaven.Jana stocks,corporate bonds and government bonds all sold off together.A whole new nightmarish situation could be developing and liquidity is drying up in the treasury market as JP Morgan stated and as shown in this Bloomberg image.  A massive sell off in the treasury market would be the ultimate cataclysm.US bonds are viewed as the safest assets to hold in the world and the 10 year note is the benchmark rate for the world and if this starts to unravel then disaster on an unprecedented scale.US,as the largest debtor nation in history,cannot afford higher interest rates on its treasuries and the Fed is desperately buying bonds to keep rates suppressed and US government solvent.Let me not even talk of Eurozone and Japanese negative yielding bonds that are far worse than US treasuries.I have already explained in great detail the toxic effect of negative yielding Eurozone and Japanese bonds in an earlier post.If stocks,corporate and government bonds continue their simultaneous sell off this could get horrendously ugly 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:amorphous wrote:slick wrote:amorphous wrote:Even corona is a fix. A mere 10000 or less die from flu like symptoms (influenza kills 100's odf thousands in the US alone each year but no scaremongering there!) and all of a sudden entire nations are on lock down . I suspect the UN will be given teeth regarding "pandemic control" when all the dust settles. Then "financial control" once the global economy is imploded in due course. The Hegelian dialectic is the oldest trick in the book..surprised the masses fall for these schemes every single time I think coronavirus is a different piece of cake altogether. It has a case mortality rate of 3% while flu is 0.1% and far higher R nought ie transimissibility than the flu.If covid-19 infects millions over the next few months as some scientists even think if could infect 70% of the global population then it could potentially kill millions.Regardless of whether Covid-19 causes the global recession or not,a recession was inevitable.The world has lasted 12 years without a recession (the longest lasting expansion in modern history) and recession was overdue and we were living on borrowed time.Central banks have been delaying the recession by injecting liquidity in every slight downturn in markets and inevitably a black swan would have appeared that central bank money printing couldnt mitigate against Slick, If you believe this then I have a AAA S&P rate Subprime CDO worth trillions that I would love to sell to you. A paltry 4000 deaths in a couple of months so far, well over 50,000 and counting "cured" of the so called Coronavirus. If more than 50k people "die" from this fake "pandemic" after all this dust has settled, I will give you 1 million kshs pesa tasilimu in clean crisp notes as your reward, sawa? Haha. AAA S&P rate Subprime CDO were the bogus junk products that the rating agencies were giving triple AAA rating while they were worthless during the housing bubble that caused the 2008 meltdown when they collapsed.Now the madness is in corporate debt with leveraged loans,junk debt and CLOs.Yet again the rating agencies are misrating them as I explained in an earlier post and these CLOs are just as worthless as CDOs of the housing bubble.They CLOs,junk debt and sub-prime leveraged loans to undeserving corporates will blow up even more disastrously than the housing bubble products.Lets not forget the overleveraged shadow banking system.The US shale oil junk bonds are already in extreme distress and the corporate bond market is frozen up.Dont believe me,check out this Bloomberg interview Well nobody knows where Covid-19 will finally play out but its definitely more serious than common flu.Do you think the Communists in China would lockdown entire cities and quarantine hundreds of millions knowing it will massively impact their economy for just a flu.The Communist government knows they only stay in power due to high economic growth and wouldnt have risked closing down the economy just for a flu.Also,death toll is much higher than the 4600 stated.Does anyone really believe Chinese figures that they are deliberately downplaying?Disease is still new and needs several months to really mature and peak and after this time period expect far more deaths.Regardless the virus has popped the biggest asset,debt and fiat currency bubble in history and I dont see how things can return to normal.The recession will play itself out regardless It gets much worse.Yesterday marked a new turn for the worst.In prior days stocks and corporate bonds have been selling off massively as cash moved from these distressed assets into US government bonds as a safe heaven.Jana stocks,corporate bonds and government bonds all sold off together.A whole new nightmarish situation could be developing and liquidity is drying up in the treasury market as JP Morgan stated and as shown in this Bloomberg image. A massive sell off in the treasury market would be the ultimate cataclysm.US bonds are viewed as the safest assets to hold in the world and the 10 year note is the benchmark rate for the world and if this starts to unravel then disaster on an unprecedented scale.US,as the largest debtor nation in history,cannot afford higher interest rates on its treasuries and the Fed is desperately buying bonds to keep rates suppressed and US government solvent.Let me not even talk of Eurozone and Japanese negative yielding bonds that are far worse than US treasuries.I have already explained in great detail the toxic effect of negative yielding Eurozone and Japanese bonds in an earlier post.If stocks,corporate and government bonds continue their simultaneous sell off this could get horrendously ugly Contrarian Investor and Trader.Advocate of free markets,limited government interference in the economy and sound money
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Rank: Veteran Joined: 9/18/2014 Posts: 1,127
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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. The main purpose of the stock market is to make fools of as many people as possible.
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