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First World Markets Shenanigans
VituVingiSana
#81 Posted : Wednesday, March 18, 2020 9:26:02 AM
Rank: Chief

Joined: 1/3/2007
Posts: 18,347
Location: Nairobi
rwitre wrote:
slick wrote:
FED TO NOW BUY COMMERCIAL PAPER WHERE THE MARKET HAD FROZEN UP

slick wrote:
slick wrote:
US COMMERCIAL PAPER MARKET FREEZES UP!!smile smile

Two weeks ago the corporate bond market froze up.Treasuries had record bid/ask prices with the 30 year auction nearly failing last week needing a Fed intervention.Now the commercial paper market has frozen up needing a Fed bailout.



https://www.ft.com/conte...-11ea-a3c9-1fe6fedcca75

It just keeps getting worse.The Fed will just have to buy everything.Now US banks wont be engaging in share buybacks putting even more pressure on stocks


Wow everyday new twists and records.The Dow Jones Industrial Average and S&P 500 had their worst day since the “Black Monday” crash of 1987, falling 12.93% and 11.98%, respectively. Also all the 3 indices recorded their biggest point drops ever.The Nasdaq Composite had its biggest one-day percentage plunge ever, tumbling 12.32%.

All this carnage despite the Fed cutting rates by 1% to Fed funds rate being between 0-0.25% and launching 700 billion of QE and undertaking 500 billion of overnight repos and 45 billion of 2 week repos.Just getting too insane.

Now futures market are up with Dow futures up 700 points when Trump indicated a bailout is coming.Looks very tempting to short that dead cat bounce.So where will the bailout cash come from?Simple.The Fed will just print the money as always.




As widely expected,Fed has launched a commercial paper facility to buy this market that has been frozen under distress for the last few days.Intention is to buy at least 1 trillion of commercial paper





Should our CBK have bought Nakumatt's commercial paper also to save it from collapse and prevent the distress in Amana Capital also?


"Cash is trash." Ray Dalio

Even Warren Buffet's $128 billion cash pile is about to become worth less value than it was 2 weeks ago- but he has probably used a huge chunk to buy stock during the recent dip.
How would it worth less except for inflation?
I think most of the cash is in high quality (mostly Fed) ST paper. And with rates down to 0-0.25%, even the LT bonds might have gained value. It is likely he will deploy the cash!!!
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
lochaz-index
#82 Posted : Wednesday, March 18, 2020 9:39:19 AM
Rank: Veteran

Joined: 9/18/2014
Posts: 1,127
VituVingiSana wrote:
rwitre wrote:
slick wrote:
FED TO NOW BUY COMMERCIAL PAPER WHERE THE MARKET HAD FROZEN UP

slick wrote:
slick wrote:
US COMMERCIAL PAPER MARKET FREEZES UP!!smile smile

Two weeks ago the corporate bond market froze up.Treasuries had record bid/ask prices with the 30 year auction nearly failing last week needing a Fed intervention.Now the commercial paper market has frozen up needing a Fed bailout.



https://www.ft.com/conte...-11ea-a3c9-1fe6fedcca75

It just keeps getting worse.The Fed will just have to buy everything.Now US banks wont be engaging in share buybacks putting even more pressure on stocks


Wow everyday new twists and records.The Dow Jones Industrial Average and S&P 500 had their worst day since the “Black Monday” crash of 1987, falling 12.93% and 11.98%, respectively. Also all the 3 indices recorded their biggest point drops ever.The Nasdaq Composite had its biggest one-day percentage plunge ever, tumbling 12.32%.

All this carnage despite the Fed cutting rates by 1% to Fed funds rate being between 0-0.25% and launching 700 billion of QE and undertaking 500 billion of overnight repos and 45 billion of 2 week repos.Just getting too insane.

Now futures market are up with Dow futures up 700 points when Trump indicated a bailout is coming.Looks very tempting to short that dead cat bounce.So where will the bailout cash come from?Simple.The Fed will just print the money as always.




As widely expected,Fed has launched a commercial paper facility to buy this market that has been frozen under distress for the last few days.Intention is to buy at least 1 trillion of commercial paper





Should our CBK have bought Nakumatt's commercial paper also to save it from collapse and prevent the distress in Amana Capital also?


"Cash is trash." Ray Dalio

Even Warren Buffet's $128 billion cash pile is about to become worth less value than it was 2 weeks ago- but he has probably used a huge chunk to buy stock during the recent dip.
How would it worth less except for inflation?
I think most of the cash is in high quality (mostly Fed) ST paper. And with rates down to 0-0.25%, even the LT bonds might have gained value. It is likely he will deploy the cash!!!

Saying WB cash pile is worth much less is not factually correct. Most assets have depreciated against the USD in this three week period. Dollar index is now poised to punch above 100 which would be a three year high. Assuming that it is held entirely in cash, the purchasing power of it has increased.
The main purpose of the stock market is to make fools of as many people as possible.
slick
#83 Posted : Wednesday, March 18, 2020 9:41:33 AM
Rank: Member

Joined: 6/1/2017
Posts: 288
rwitre wrote:
slick wrote:
FED TO NOW BUY COMMERCIAL PAPER WHERE THE MARKET HAD FROZEN UP

slick wrote:
slick wrote:
US COMMERCIAL PAPER MARKET FREEZES UP!!smile smile

Two weeks ago the corporate bond market froze up.Treasuries had record bid/ask prices with the 30 year auction nearly failing last week needing a Fed intervention.Now the commercial paper market has frozen up needing a Fed bailout.



https://www.ft.com/conte...-11ea-a3c9-1fe6fedcca75

It just keeps getting worse.The Fed will just have to buy everything.Now US banks wont be engaging in share buybacks putting even more pressure on stocks


Wow everyday new twists and records.The Dow Jones Industrial Average and S&P 500 had their worst day since the “Black Monday” crash of 1987, falling 12.93% and 11.98%, respectively. Also all the 3 indices recorded their biggest point drops ever.The Nasdaq Composite had its biggest one-day percentage plunge ever, tumbling 12.32%.

All this carnage despite the Fed cutting rates by 1% to Fed funds rate being between 0-0.25% and launching 700 billion of QE and undertaking 500 billion of overnight repos and 45 billion of 2 week repos.Just getting too insane.

Now futures market are up with Dow futures up 700 points when Trump indicated a bailout is coming.Looks very tempting to short that dead cat bounce.So where will the bailout cash come from?Simple.The Fed will just print the money as always.




As widely expected,Fed has launched a commercial paper facility to buy this market that has been frozen under distress for the last few days.Intention is to buy at least 1 trillion of commercial paper





Should our CBK have bought Nakumatt's commercial paper also to save it from collapse and prevent the distress in Amana Capital also?


"Cash is trash." Ray Dalio

Even Warren Buffet's $128 billion cash pile is about to become worth less value than it was 2 weeks ago- but he has probably used a huge chunk to buy stock during the recent dip.


Fundamentally cash is trash considering the trillions of dollars the Fed is printing daily in even larger schemes to pump up markets but psychologically the US Dollar is king.Despite the trillions being pumped daily,the USD rose and has been remarkably stable.How is this possible?The US Dollar is the world's reserve currency backed by the US superpower status and petrodollar system.Most central bank reserves and most global trade is in USD and lots of debt especially in the emerging and frontier markets are USD denominated debt.This creates a massive constant massive demand for dollars.The current implosion of markets is creating a deflationary spiral making the USD even more sought after despite the trillions being printed.Foreign markets especially European banks are USD strapped thus Fed has setup currency swap lines with European Central Bank to reliquify the European banks with dollars.There is at least 11 trillion of USD denominated foreign debt where interest and principal payments have to still be made so there foreign nations are desperately seeking dollars to make their debt payments.Mainstream investors panicking put of asset classes like stocks are reverting to cash making the demand of dollars even stronger.Investors see no alternative to put their money in USD since the other major currencies facing even more dire straits.Would you park your money in the Euro,Yen when the Eurozone and Japan have negative central bank rates and negative yielding bonds?The British Pound is too small a market and the Chinese also printing money in droves and would you park your cash in a Communist dictatorship where the Yuan isnt a fully convertible currency?Thus in the short term the USD remains King but long term this money printing shenanigans will result in massive decline in the greenback.

As it now the norm,everyday the markets create a new twist.Apart from the massive repos and QE liquidity injections now running at at least a trillion a day,the Fed will print an least an extra 1 trillion to bailout the commercial paper market.Above this,there is now fiscal stimulus.Trump and Treasury Secretary Mnuchin announced sweeping bailout measures that will incur over 1 trillion



An administration official said the package could include:

$500 billion to $550 billion in direct payments or tax cuts
$200 billion to $300 billion in small business assistance
$50 billion to $100 billion in airline and industry relief

Every American (except millionaires and billionaires) will each get 1,000 USD each immediately



They are also deffering tax payments by 90 days




So where are all these trillions for bailouts coming from.Simple the Fed will just create the money from nothing (keystrokes in computer screens to credit the commercial bank and corporate accounts)

Stock market closed higher yesterday due to these massive money printing packages but now open lower with futures yet again hitting limit down and futures trading is halted



WOOOOI!!Sad Sad Sad

Contrarian Investor and Trader.Advocate of free markets,limited government interference in the economy and sound money
wukan
#84 Posted : Wednesday, March 18, 2020 10:31:08 AM
Rank: Veteran

Joined: 11/13/2015
Posts: 1,654
At this rate they will limit trading hours.
lochaz-index
#85 Posted : Wednesday, March 18, 2020 10:43:27 AM
Rank: Veteran

Joined: 9/18/2014
Posts: 1,127
For those short selling various European markets, shorting has been banned entirely or on select stocks in Italy, Spain, France and the UK. Expect more countries to follow. Best migrate those shorts to the respective indices of interest.
The main purpose of the stock market is to make fools of as many people as possible.
slick
#86 Posted : Wednesday, March 18, 2020 10:59:43 AM
Rank: Member

Joined: 6/1/2017
Posts: 288
lochaz-index wrote:
For those short selling various European markets, shorting has been banned entirely or on select stocks in Italy, Spain, France and the UK. Expect more countries to follow. Best migrate those shorts to the respective indices of interest.


Yeah I noticed that also yesterday.At this rate US may also ban short selling.In 2008 after the Lehman blowup they temporarily banned short selling on 799 financial stocks




Contrarian Investor and Trader.Advocate of free markets,limited government interference in the economy and sound money
amorphous
#87 Posted : Wednesday, March 18, 2020 12:28:42 PM
Rank: Member

Joined: 5/15/2019
Posts: 687
Location: planet earth
Laughing out loudly Slick, I told ya mbro. You can never win against the mbankstas.
Just join us in planting beans and building mijengo. I remember circa 2009 I was up 200k usd trading on a swiss account going long on some commodities. I thought I was a genius with maneno minki minki on the trading forums just like you. Then one day the graph when shuuuuuuuuuuu pwappp down to my automatic stop position cleaning out 90 percent of those gains in a day! No market news concerning the commodities at hand, no crises, no nothing! The next day it promptly went straight back up pwaaaaaap to where it had been the previous day!Laughing out loudly That's when I knew those manenos are rigged, mbro. They routinely "flush" out all the positions with automatic stops for the heck of it, and make a killing doing so. Once they ban shorts its curtains mbro. Beans and mijengo are the only recourse kapsa kapsa.
In the final analysis, it all boils down to sheer plain old hard work and dogged persistence. Nothing more, nothing less!!
slick
#88 Posted : Wednesday, March 18, 2020 3:17:29 PM
Rank: Member

Joined: 6/1/2017
Posts: 288
amorphous wrote:
Laughing out loudly Slick, I told ya mbro. You can never win against the mbankstas.
Just join us in planting beans and building mijengo. I remember circa 2009 I was up 200k usd trading on a swiss account going long on some commodities. I thought I was a genius with maneno minki minki on the trading forums just like you. Then one day the graph when shuuuuuuuuuuu pwappp down to my automatic stop position cleaning out 90 percent of those gains in a day! No market news concerning the commodities at hand, no crises, no nothing! The next day it promptly went straight back up pwaaaaaap to where it had been the previous day!Laughing out loudly That's when I knew those manenos are rigged, mbro. They routinely "flush" out all the positions with automatic stops for the heck of it, and make a killing doing so. Once they ban shorts its curtains mbro. Beans and mijengo are the only recourse kapsa kapsa.


Haha.You are hilariousLaughing out loudly Laughing out loudly .Yes Wall Street is a rigged game where the professionals keep swindling the naive retail investors and traders.Brokers actually sell order flow data like where retail investors normally put their stops to the Wall Street banks,hedge funds and other money managers so that they can run those stops and clean retail investors out.When a major money manager wants to sell a position,they go on mainstream media channels like CNBC or Bloomberg,tout the stock as a screaming buy and suck in retail investors and when the price appreciates from retail buying they dump the stock onto the retail investors.Sometimes they might buy a small amount of a stock that they want to sell so that retail investors see that the equity is moving up,retail then jump in and the money mangers sell to the retail.They spoof markets with fake orders that they cancel but this spoofed fake trades show up in the order flow that retail investors assume its a genuine order which they jump into and get killed by the professionals.They also tout to their clients to keep buying new stocks to collect commissions on your trades without caring if you will suffer a loss.Its just how it is.When one watches movies like the 'Wolf of Wall Street','The Big Short','Margin Call','Wall Street (1987 film)','Wall Street: Money Never Sleeps' and others then you truly know how sick the Wall Street Game is.Its why 90% of retail traders lose 90% of their money in the first 90 days ie the 90-90-90 rule.

Best way to play this game is to keep your position sizes small so that if the market suddenly turns against you,you dont lose most of your capital,respect your profit target and stop loss,study charts all the time and keep abreast with latest events.You wont become a millionaire overnight but you will make small but sure gains and build your portfolio with time.Problem with most retail is that they enter the market with dreams of instant riches only to end in tears putting like 50% or going all in on one trade then blowing up in days or weeks losing all their capital.
Contrarian Investor and Trader.Advocate of free markets,limited government interference in the economy and sound money
slick
#89 Posted : Wednesday, March 18, 2020 8:07:21 PM
Rank: Member

Joined: 6/1/2017
Posts: 288
US STOCK TRADING HALTED FOR 15 MINUTES AFTER MARKET FALLS 7%.FOURTH TIME IN 8 TRADING DAYS

Sad Sad Sad




The Dow Jones Industrial Average wiped out all the gains logged since Donald Trump’s inauguration
Contrarian Investor and Trader.Advocate of free markets,limited government interference in the economy and sound money
lochaz-index
#90 Posted : Wednesday, March 18, 2020 8:35:49 PM
Rank: Veteran

Joined: 9/18/2014
Posts: 1,127
slick wrote:
US STOCK TRADING HALTED FOR 15 MINUTES AFTER MARKET FALLS 7%.FOURTH TIME IN 8 TRADING DAYS

Sad Sad Sad




The Dow Jones Industrial Average wiped out all the gains logged since Donald Trump’s inauguration

At this rate those circuit breakers will malfunction! Truly historic times.
The main purpose of the stock market is to make fools of as many people as possible.
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