What a clown show the US market has become. Please forgive me, but I cannot find any better words to describe it. Before the US #CPI came out, I wrote these words: “Once data is out and is within the range of expectations (even if “hot”), algorithms start dumping the…
Category:Daily
Daily post about finance and breaking news
WHY ARE MARKET MAKERS SELLING INSURANCE ON A ($NYCB) HOUSE THAT’S ALREADY ON FIRE?
By this time, the news of $NYCB closing should have already hit the tape. However, REGARDLESS OF WHETHER THIS NEWS IS POSITIVE OR NEGATIVE, the price of this #stock is MATHEMATICALLY going to crash by 40-50%. Wait, why mathematically? Let me explain. Scenario 1 – A $1bn rescue package for…
IS THE #FED (PERHAPS WILLINGLY) STARTING A BANKING CRISIS TODAY?
In about 24 hours, the “Bank Term Funding Programme”, the infamous #BTFP, will be history. There should not have been any surprise about this if it wasn’t for the fact the banking situation today is much worse than it was one year ago when the #BTFP was launched. How dire…
DEAR ALL, IT WILL ALL END LIKE IN THE MOVIE “INDEPENDENCE DAY”
Yesterday, I watched the opening of #US #stocks trading in literal disbelief as investors stampeded into $NYCB, sending the stock up 15% at some point. The scene reminded me of the movie “Independence Day”, one of my favorites, when you see people dancing on top of buildings right below the…
MORGAN STANLEY – BIG BALANCE SHEET LOSSES HIDDEN BEHIND EXOTIC DERIVATIVES CURTAINS (AGAIN)?
When you’ve spent enough time trading inside a bank and watching markets for hours a day, in my case I traded my first stock when I was 11, sometimes you’re able to spot if something suddenly starts behaving weirdly. This is exactly what happened with Morgan Stanley ($MS) in the…
WHAT CAN SAVE #STOCKS FROM A HISTORICAL IMPLOSION ONCE AGAIN?
It’s no mystery anymore. What matters to low-popularity politicians in charge of government and seeking reelection is a #bullish #stockmarket until after the election date. From #Japan to the #US, from the #UK to #Germany, what do all of them have in common? The government in charge is dealing with…
JAPAN END GAME – A DEEPLY DEVALUED $JPY AND A WORTHLESS #NIKKEI
The #Nikkei just broke 40,000 and yet no one in #Japan is celebrating, literally speaking. Why? The purchasing power of $JPY literally fell through the floor in the past 30 years as a result of endless (and reckless) nonstop money printing. As I wrote almost 5 months ago on X:…
HOW CAN THE #FED BAILOUT BANKS WHEN THIS TIME IT NEEDS A BAILOUT ITSELF TO BEGIN WITH?
Even if blessed with superpowers, in particular, the one of printing infinite money, the Federal Reserve is ultimately a “Bank” and like every superhero has a weak spot like Kryptonite for Superman. Being a “Bank”, hence required to remain solvent, is paradoxically the #FED’s weakness. Let me explain: 1 –…
WHAT ARE THE CHANCES HSBC IS INSOLVENT AND FIGHTING A LIQUIDITY CRISIS? – EPISODE 2
In the first episode, we dived into $HSBC’s liquidity issues. Now, it’s time to peek into its lending books to close the circle on this (beyond messy) bank. 🚩 As hinted in my previous post, despite a market increase in total loan exposure (that, for the record, $HSBC mostly blames…