Liquidity is money. Regardless of where in the world that money originates, eventually it flows to and through Wall Street. So if you want to know the direction of the next big moves in stocks and bonds, just follow the money. Lee Adler's Liquidity Trader tracks and shows you the monetary forces that drive markets, like the daily real time Federal Withholding taxes shown in this chart. Follow the money. Find the profits! Try it for 90 days, risk free!
Today is a double whammy for bad news for the US economy.
Liquidity moves markets!Follow the money. Find the profits!
First, The Census Bureau monthly construction spending report reveals that highway and street spending rose 11.7% in January. The biggest decline was communication spending.
BUT, US residential construction spending slumped for the 6th straight month. It is beginning to resemble “The Matterhorn” plunge of the 2000s.
The second whammy is the FDIC report revealing that US banks reported $251 billion of “unrealized losses” on securities investments in 2018, the most since 2008.
For a less grim chart from The Federal Reserve (and a different metric), here is US Commercial Bank Liabilities Net Unrealized Gains (Losses) Available for Sale.
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