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aussiebear

World Stock Markets Trading Discussion - Bland brandishing

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As I type this, December ES is right about where it was at 1:59 p.m. e.s.t., despite the approximate 25 point swing from top to bottom after the announcement.

Was it Jickiss that used to say "nothing has happened yet"? 😕

 

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Well it's going to be another long 6 weeks without new Fed money, except the p̶a̶y̶d̶a̶y̶ ̶l̶o̶a̶n̶  repos.

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I still think the little kerfluffle in the overnight the last 2 nights  was scripted.  If not it just as well have been.  It was sort of baked into the cake, easy enough to pull off.

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 I don't think so. The conditions are there and they will only get worse from here. 

If  the Fed really intends to keep rates below 2%, these gargantuan repo operations will quickly become a feature. They will grow to the point where issuing and rolling hundreds of billions in repo will quickly require a return to $100 billion per month in QE. 

Under normal conditions, that would drive another massive inflation of asset prices. But with the Treasury's insatiable appetite for huge deficit funding for as long as we can imagine, this time could be different. The Fed may ultimately have no choice but to allow rates to rise to the levels the market would require without massive intervention. God knows what that level is.  

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There was no crisis in the overnight market.  The market needs lower prices, aka higher rates. There will be plenty of bids for Treasury paper a full point higher.   Let the market work. LOL. As if.  

Nope, it's inflate asset prices or die.  They will stop at nothing to accumulate trillions and trillions and trillions more.

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