Treasury issuance will go through the roof over the next 5 days while the Fed has decided to cut back its support. That’s a bad…
The S&P ES fucutures are up 90 points. That may not mean what you think.
Macro liquidity measures have absolutely gone through the roof, blown the lid off, set off a tsunami, as US government spending skyrockets to the moon and worlds beyond. US bank deposits aren’t just soaring, they are exploding. These deposits are backed mostly by US Treasury paper, future claims on American taxpayers. These claims for which there’s no reasonable expectation of repayment, other than with severely depreciated dollars. Your stocks may soar, and they may still be worthless.
As the stock market began to rebound, one indicator shows the banks started buying shit like crazy. Like the South Park’s Kyle, the kid who always believed in Mr. Hankey the Christmas Poo, the banks believe in Mr. Powell.
The S&P ES fucutures are up 90 points. That may not mean what you think.
Futures in the pre-market signal an end to the crash. Here’s what’s needed to maintain that and a few trade suggestions to take advantage.
It worked well in theory and in practice for a dozen years. But at what is likely to be the most important juncture in our lives, if not in modern history, this indicator failed to warn us. Here’s why that’s terrifying.
We also take a look at the foreign central bank issue and tell why that’s also frightening.
The futures were bouncing around like a pogo stick 15 minutes before the jobs report was posted.
Now is not the time to be nibbling.
$321 Billion
That’s how much cash the Fed will pump into Primary Dealer accounts this week. Guess how much new Treasury issuance there will be over the same period. If you guessed $321 billion, you would be all but correct. It’s $328 billion.
That’s right. The Fed is buying all of the COVID19 rescue financing. It’s inventing imaginary money to pay Primary Dealers for that new supply. The Fed is printing the money to pay for the economic bailout.
And it’s not stabilizing the financial markets. Here’s why, and what it means
The Fed is buying all the new Treasury supply with enough cash left over for the dealers to mount a defense. They aren’t.