Quote:
Originally Posted by tabs
BTW I DEAL IN REALITY and NOT FANTASY..The tidings are grim...and are depressing but you have to deal with it. You have no other choice now because it is gob smacking you in the face...
Your thinking on the Micro level..you need to look at the MACRO machinations that effect peoples decisions and actions. The macro movements over the last decade leave little where with all to meet this crisis. Those machinations over the past decade have been done to sustain an appearance of a previous normalcy. where a NEW NORMAL was in fact operating out of sight. Now the CV tips the scales where that NEW NORMAL is in plain sight and you have to deal with that reality of having empty shelves...where previously they were full.
Yesterday and today the FED printed 150B. That is apx 2 months worth of QE3. They are putting up 500B A DAY at the REPO window, they are BACKSTOPPING Money Markets by accepting collateral for liquidity. They have put up 750B for QE 4.5 They are going to start BUYING muni bonds...
and soon corporate paper and even buying Stocks themselves like the BOJ does (and owns 75% of the Japanese equity market). They are moving to NEGATIVE US interest rates...at that point we may begin to see a cashless society as a move to be forced to use banks that are charging consumers negative interest rates. Gold ownership maybe prohibited as in 1933.
The price of Oil has virtually crashed to WTC 23.64 a barrel...I suspect sub 20 a barrel. Even Gold and Silver have crashed..but are now rebounding. When the Trillion $$ stimulus was announced the 10 yr Treasury bumped to about 1.2% and has fallen to sub 1% again. The USD is strong as all the other currencies are turning to shyte.
The GS prognostication for Qtr 2 GDP to fall by 24%. and the possibility of having 20% unemployment..can you say DEPRESSION..
Then we come to RE Foreclosures...there already is a moratorium, Car loan defaults and Credit Card defaults...they are already saying if you do not make a payment do not worry. Filing Income Taxes is now deferred till 7/15/20. Then we come to the 2K payments to everybody..which is designed help people meet their obligations to the banks and living expenses
ALL PENSION FUNDS, ANNUITIES, Mutual Funds and 401Ks are at risk because of the Stock Market rout.
Shauny you know full well what I said about CV being at DEFCON 3 back in January and the possible future outcome.
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Tabs, I have not been tracking those metrics of late, in part as there are few that understand WTF they mean so it becomes more self gratification than useful for good conversation.
I too worry about the injection issue and also how to handle the inevitable defaults on RE and the laws that **shudder** governments will put in place to stop the rout.
The dynamic is interesting as they are issuing more funds but at 0% rate (if I hear Mnuchin correctly)...
Please confirm your data, I need to think a bit....
Dennis