Two months ago, in FINANCIAL MARKETS REACHED A “SINGULARITY” NO ONE WANTS TO DEAL WITH, I tried to highlight how legacy economic theories—built on assumptions that never fully materialized decades ago—are now ineffective in today’s economic context. In that article, I emphasized five key points: Today, @thesiriusreport posted one of…
Category:Banks
MOUNTING SIGNS OF LIQUIDITY PROBLEMS AMONG LARGE US AND UK BANKS
The past week has been incredibly interesting, to say the least. For the first time since the 2020 COVID crisis, we saw the FED Standing Repo Facility being tapped for a significant size by at least one bank (IF “EVERYTHING IS AWESOME” WHY THERE IS AT LEAST ONE LARGE BANK…
IF “EVERYTHING IS AWESOME” WHY THERE IS AT LEAST ONE LARGE BANK THAT COULDN’T FIND LIQUIDITY IN THE OPEN MARKET AND NEEDED IT FROM THE FED?
Yesterday was the end of the third quarter of the year, which means banks (along with brokers and asset managers) were busy “window dressing” their books to make sure they looked as good as possible by the time the quarter-end snapshot of their financials was taken. Bank goals heading toward…
JAPAN ISN’T ALLOWED TO IMPLODE BEFORE US ELECTIONS, BUT NOT EVERYTHING IS UNDER CONTROL AND THE CHANCES FOR A REAL BLACK MONDAY TO SPARK ARE NOT THAT LOW
Last Friday, a few minutes after the Tokyo stock exchange closed for the week, news about Shigeru Ishiba winning the LDP party leadership elections, making him virtually the next Prime Minister, jolted Japan’s futures and FX markets. Why did Japan stock futures crash more than 7% after the news? Because…
HERE COMES THE PANIC – BUT NO WORRIES, IT WILL BE VERY SLOW AT FIRST
A piece of breaking news like this one should have sent markets into panic mode: “China Weighs Injecting $142 Billion of Capital Into Top Banks“. However, due to a boiling frog syndrome that is trapping the vast majority of the public, both retail and professional, no one is feeling the…
A BIG BANK IS ON LIFE SUPPORT, CHINA KNOWS IT AND IS PREPARING TO WITHSTAND THE SHOCK – IS THIS BULLISH?
This current historical period for markets is one of a kind, isn’t it? Surely when it comes to the dissemination of fake and misleading news. This is the set of policy measures the PBOC announced yesterday in support of the Chinese economy: All the policies above except one were in…
WHAT IF BANKS ARE COORDINATING WITH THE FED TO LIQUIDATE TENS OF BILLIONS OF TROUBLED JPY CARRY TRADE POSITIONS?
What’s currently happening in markets makes little sense, to say the least, but lately, I received several interesting comments on my posts and articles that brought back memories of my time on the trading floor. One comment last week pointed at the usual practice (an open secret) between banks of…
IS THE MARKET PRICING A FED CUT OR IS A NEW BANKING CRISIS ABOUT TO SPARK AGAIN?
For traders, a FED rate cut next week is a done deal, and portfolios have already been positioned accordingly. This is the narrative force-fed by MSM to the public that everyone is expected to embrace. However, today I would like to offer you a different perspective. What if this strong…
NORINCHUKIN BANK CHAOS CAN TRIGGER AT ANY MOMENT
I started to cover Norinchukin Bank many months ago already (“WHY IS THE FED PREPARING TO BAIL OUT A JAPANESE BANK? BECAUSE OF THE “NORINCHUKIN” DANGER”) and since then the situation of one of the biggest Japanese banks has become worse and worse: A few weeks ago Norinchukin released its…
IS A LARGE BROKER USING CLIENTS’ FUNDS TO COVER ITS LOSSES?
Even if everything is “back to normal” and everyone is behaving as if the events from two weeks ago were just a bad nightmare, with the VIX free-falling in a way never seen before (from 66 below 18 in 7 trading days, while every time before it took months to…