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There’s No Mystery 8/5/20

This is a syndicated repost courtesy of Stool Pigeons Wire at To view original, click here. Reposted with permission.

11 hours ago, fxfox said:

Hmm? What will the FED do? Gotta step in or we gonna crash in September.

That’s BS. Nobody knows what the Fed will do over 5 months.  The Fed itself doesn’t know. Nor does the Treasury know how much it will need to borrow that far in advance. The TBAC is pretty good for the current quarter after they’ve had a look at the first 6 weeks, but their estimates for the next quarter are usually way off. Like most econ forecasters they suck at it.

Liquidity moves markets!

Follow the money. Find the profits! 

But there’s no mystery what the Fed will do re the Federal Debt. It will do exactly what it has been doing for the past 11 years. It will monetize 90-100% of the debt. So whatever the amount is the Fed will buy or fund all of it. They tried to do otherwise during the brief bloodletting phase from October 2017 to December 2018 and learned their lesson real quick.

Meanwhile, the ES is nearing the 5 day cycle projection of 3330.



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Lee Adler

I’ve been publishing The Wall Street Examiner and its predecessor since October 2000. I also publish, and was lead analyst for Sure Money Investor, of blessed memory. I developed David Stockman's Contra Corner for Mr. Stockman. I’ve had a wide variety of finance related jobs since 1972, including a stint on Wall Street in both sales, analytical, and trading capacities. Prior to starting the Wall Street Examiner I was a commercial real estate appraiser in Florida for 15 years. I was considered an expert in the analysis of failed properties that ended up in the hands of bank REO divisions, the FDIC, and the RTC. Remember those guys? I also worked in the residential mortgage and real estate businesses in parts of the 1970s and 80s. I have been charting stocks and markets and doing analytical work since I was a teenager. I'm not some Ivory Tower academic, Wall Street guy. My perspective comes from having my boots on the ground and in the trenches, as a real estate broker, mortgage broker, trader, account rep, and analyst. I've watched most of the games these Wall Street wiseguys play from right up close. I know the drill from my 55 years of paying attention. And I'm happy to share that experience with you, right here. 

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