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…
Category:Macro
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…
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 $142 Billion of Capital Into Top Banks“. However, due to a boiling frog syndrome that is trapping the vast majority of the public, both retail and professional, no one is feeling the…
A BIG BANK IS ON LIFE SUPPORT, CHINA KNOWS IT AND IS PREPARING TO WITHSTAND THE SHOCK – IS THIS BULLISH?
This current historical period for markets is one of a kind, isn’t it? Surely when it comes to the dissemination of fake and misleading news. This is the set of policy measures the PBOC announced yesterday in support of the Chinese economy: All the policies above except one were in…
IS THIS BLACKROCK’S MASTER PLAN FOR BITCOIN?
BlackRock’s spot Bitcoin ETF (IBIT) has been by far the most successful ETF launch in the firm’s history and with ~22.5 bn USD of AUM already is set to surpass the established iShares IAU Gold ETF (~31bn$ AUM) in the near future. However, why does a firm that manages ~10.6…
FED ACTION TODAY MARKS THE BEGINNING OF THE END OF THE FIAT MONETARY SYSTEM EXPERIMENT
The FED just delivered an oversized cut with the S&P500 trading at all-time highs, signalling that, contrary to their mandate, their focus isn’t the economy anymore but to deliver the political agenda of the US Administration in charge. That the FED is now clearly solely focused on defending the stock…
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…
HOW LONG WILL THIS BUBBLE LAST? IT LOOKS LIKE TILL Q1-2025
“How long will this bubble last” is a question I receive constantly although lately, the frequency has been increasing. My usual answer is “I am afraid, it is impossible to tell”, however I struggled to remove this thought from my mind so I decided to give it a try and…
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…
THE FORGOTTEN LESSON FROM EVERY CRASH SINCE 1929: BE A BUYER WHEN THERE IS NO HOPE LEFT IN MARKETS
16 years have now passed since the GFC, the true last major financial markets crisis. Many people who started working at that time are now 35-40 years old and are at that stage of their lives when they start thinking about accumulating wealth for a comfortable retirement. Those who instead…