Move Over Coronavirus! Is This ‘Repo-Virus’ the True Culprit of the Crash?
"The Coronavirus panic has therefore been a convenient excuse to extend the stimulus and liquidity provision by slashing rates towards zero."
"The Coronavirus panic has therefore been a convenient excuse to extend the stimulus and liquidity provision by slashing rates towards zero."
"We are in a bear market and a recession. It just hasn’t been announced ... yet."
"The markets have just suffered their worst one-day collapse since the 1987 Crash."
"If you can’t find physical for sale easily, then the street price will be very high when you do find it."
"Stay alert; things are finally getting interesting."
"History shows that the most effective way to protect the environment is via a system of private property rights and free markets. Private property owners are better stewards of the environment than are government bureaucrats because private property owners have greater incentives to maintain the value of their property. This is why the greatest pollution in history was in the communist countries of the 20th century."
If it looks like a duck, and walks like a duck, and quacks like a duck … it’s a duck.
"The Chairman of the U.S. Fed, Jerome Powell, should understand how supply and demand works, but as a reminder, the less available something is, everything else constant, the more it is worth. Mr. Chairman, your predecessors removed $3.5 trillion of bonds from the market, what did you think would happen to bond prices and therefore yields?"
"While another $2-4 Trillion in QE might indeed be successful in keeping the bubble inflated for a while longer, there is a limit to the ability to continue pulling forward future consumption to stimulate economic activity. "
"Bottom line, the U.S. dollar is being targeted by other nations, and CBDCs are more ammo in their arsenal. Whether countries like China are successful remains to be seen."
"But don’t worry, the Fed has already committed to more quantitative easing. Whoopee! Kick that can, Jerry."
"The Fed and media are vehemently defending the latest round of repurchase market (“repo”) operations and T-bill purchases as “not QE.” Before the Fed even implemented these new measures, Jerome Powell was quick to qualify their actions accordingly: “My colleagues and I will soon announce measures to add to the supply of reserves over time,” “This is not QE.”"
"Lenin was certainly right. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency."
"What is going on here? The Fed is supposedly engaged in a $60 billion per month QE program. And yet its balance sheet has started shrinking."
"...if the Fed is ACTIVELY pulling liquidity to sabotage the markets, it means stocks are going DOWN no matter what is happening with the economy or investors."
Kiley: "If the U.S. economy entered a recession soon and interest rates fell in line with levels seen during the moderate recessions of 1990 and 2001, yields on even longer-dated Treasury securities could fall to or below zero."
Dallas Fed President, Robert Kaplan: "...growth in the balance sheet is not free. There is a cost to it."
"Taking profits and reducing risks now may lead to a short-term underperformance in portfolios, but you will likely appreciate the reduced volatility if, and when, the current optimism fades."
Once private property is gone, public survival depends on the “charity” of the state and its corporate partners. Without property, dependency metastasizes like a cancer.
You would think that with the U.S. taking out a top Iranian commander, threats of military action flying between the U.S. and Iran, not to mention the “Selective Service” website crashing over concerns of World War III, the markets would be in full “sell” mode. If you thought that would be the case, you were wrong.
"The Fed will need to coordinate successfully with other major central banks, even as their objectives and priorities increasingly come into conflict."
The Fed is easing ... "at a time when unemployment is below 4%, the U.S. economy is growing over 2%, and the stock market is at all-time highs."
If these lending markets “freeze” like they did in 2008, it could create a retirement nightmare for anyone who isn’t prepared for the bumpy ride.