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World Stock Markets Trading Discussion - Addled adjustments

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All Ords turned around and finished the day +0.2%.  Sectors ranged from Energy +1.9%, IT +0.4% down to Consumer Staples -0.6%.

Over in Asia, China -0.1%, Hong Kong +0.8%, Japan +1.5%, India currently +0.8%.



On to UK/Europe:










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WTF is the deal with this rally?


does there need to be a reason given the past several years?


BTFD with the other central banks?


several down days all erased in less than 2 hours......that is now considered normal by people......


>:Every crap media outlet keeps talking


Tax Reform-Tax cuts


just keep saying it over and over


>: Maybe Flo-Bot wants to take Friday off.....

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Lee, heard a very good discussion regarding the Eurodollar market and history/use of commercial bank accounting to create more liquidity (off balance sheet) in addition to what the Central banks have created over the last 30-40 years. You are probably one of the best at monetary liquidity analysis. Obviously 2008 was the moment of truth for all this leverage and off balance sheet activity, however, does this commercial bank activity still have to be accounted for when determining liquidity creation or has the entire liquidity creation process moved over to the central banks since 2008?


It is a 4 part series from Macrovoices This is part 4.

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I track what I feel are the most important aspects of US and European bank activity and report on it monthly. Deposits have been disappearing from Europe faster than the ECB prints it. And loan growth is slowing in the US. Money creation could turn negative as the Fed increases its draining ops.


Gonna be interesting! 

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"use of commercial bank accounting to create more liquidity" off balance sheet.


There is "liquidity" and then there is money. Sometimes but not always the same thing. The word liquidity is often used as a sort of  reference to liquid markets. Those being markets that have continuous bids and asks. I am not going to listen to this but banks create money by making loans.  They can work to keep markets 'liquid', functioning that is, and in so doing keeping the prices of said asset markets high by bidding them,  and they surely do, in the vast world of derivatives as well in individual  issues and classes of assets. Markets can be helped to be more 'liquid' by directing money to them  and that usually leads to higher prices and of course the assumed increase in 'wealth', but it isn't creating money.

In other words don't toss the word liquidity around.


The ability to do that is certainly entwined with the general availability of money in the system and the relative direction and speed of its expansion or contraction. Low or no growth in money means asset deflation. Period. Well in all history thus far.

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