Here We Go Again, But Beware Slowing QE 4/14/20

[DrStool]

Dicsucs

[DrStool]

  

12 hours ago, fxfox said:

New York Fed says it will reduce frequency of repo operations
https://www.google.de/amp/s/mobile.reuters.com/article/amp/idUSL2N2C11DE

OK, Let me make on thing perfectly clear. 

As if I haven't already. 

Because Like I Told You Before, Oh, You Can't Do That. 

The Fed is cutting repo because there is ZERO demand. 

From the beginning of Not QE, I forecast that as the Fed ramped up full POMO that TOMO (repos) would drop. The dealers don't need to borrow repo because A. the Fed is cashing them out  and B. The Fed is taking all their repo'd inventory off their hands. 

This is not a "natural" improvement. The Fed has simply replaced TOMO with POMO. The dealers have more cash and less inventory to REPO.

But it also means that they are deleveraging. Their risk appetite is reduced. And what the Fed isn't running around screaming from the mountaintops is that it is also REDUCING POMO! Operations this week will average $30 billion per day. That's down from $75 billion a day two weeks ago. 

The Fed is taking its foot off the gas. It wants to see if the market can coast mostly on its own. 

Well guess what! 

The Fed will step in again, but not before another selloff.   

Trust me boyz and gurls, there will be another leg down. 

[DrStool]

8 minutes ago, DrStool said:

  

OK, Let me make on thing perfectly clear. 

As if I haven't already. 

Because Like I Told You Before, Oh, You Can't Do That. 

The Fed is cutting repo because there is ZERO demand. 

From the beginning of Not QE, I forecast that as the Fed ramped up full POMO that TOMO (repos) would drop. The dealers don't need to borrow repo because A. the Fed is cashing them out  and B. The Fed is taking all their repo'd inventory off their hands. 

This is not a "natural" improvement. The Fed has simply replaced TOMO with POMO. The dealers have more cash and less inventory to REPO.

But it also means that they are deleveraging. Their risk appetite is reduced. And what the Fed isn't running around screaming from the mountaintops is that it is also REDUCING POMO! Operations this week will average $30 billion per day. That's down from $75 billion a day two weeks ago. 

The Fed is taking its foot off the gas. It wants to see if the market can coast mostly on its own. 

Well guess what! 

The Fed will step in again, but not before another selloff.   

Trust me boyz and gurls, there will be another leg down. 

Just remember. Never trust anyone who prefaces a statement with, "Trust me."

[fxfox]

A cyberattack could be responsible for a total outage on the Xetra trading system and website since 9.25 am CET, according to unconfirmed reports.

The Deutsche Boerse refused to comment on the possibility of a cyberattack and said it was still investigating the cause of the technical problem that caused the DAX to stop trading at 9:26 am CET.

Meanwhile, German stocks continued trading on the TradeGate exchange which was not affected by the issue.

Eurex, Vienna, Budapest, Prague, Zagreb and Ljubljana SE were also down as of 9:25 am CET.

https://www.teletrader.com/possible-cyberattack-on-german-exchange/news/details/51845480

[DrStool]

LEE'S FREE THINKING

Here’s Why Fed’s Statement On Cutting Repurchase Operations Is Total Bullshit

by Lee Adler • April 13, 2020 • 0 Comments

Those Fed guys are so funny.

What a bunch of bullshitters. 

[Jorma]

Is $221TN a lot in 3 days? 4/14/ thru /4/16

https://www.treasurydirect.gov/instit/annceresult/press/press_cashpydwn.htm

 

[DrStool]

I read these stories from survivors of COVID 19, and as a 69 year old with Cardiovascular disease, I am definitely...

I don't know what I am...

I just wish that I didn't need to go to the supermarket to buy bananas today.  OK. I can skip my daily banana, but soon I'll run out of coffee.  Then what. 

I love the people walking around town with their fucking facemasks around their fucking necks. I mean what the fornicate. Stay the fornicate inside if you can't stand having a mask on your goddamn face for a few minutes, asshole.  

Mostly women I see doing this. A lot of men are walking around maskless. Bigger assholes.  

[DrStool]

Just now, Jorma said:

Is $221TN a lot in 3 days? 4/14/ thru /4/16

https://www.treasurydirect.gov/instit/annceresult/press/press_cashpydwn.htm

 

Billion

[DrStool]

And yes, it's a lot. 

[Jorma]

6 minutes ago, DrStool said:

Billion

Oops. Trillions will come later. We'll have to take care of all those Moon and Mars residents

[fxfox]

Three things:

1. Those masks give a fals feeling of security.

2. If Trump sacks Fauci the tide will turn.

3. How can they keep the market up with that monster supply from the Treasury?

[Jorma]

6 minutes ago, fxfox said:

Three things:

1. Those masks give a fals feeling of security.

2. If Florida Man sacks Fauci the tide will turn.

3. How can they keep the market up with that monster supply from the Treasury?

1 Non N95 masks are first meant to prevent spray for your mouth, especially when speaking, and thus the risk of infecting others. Still they offer a degree of protection from inhalation which is by far the most dangerous exposure. It doesn't make any difference how much security it makes others feel. 

2 The ratings of public figures doesn't mean squat.

3 With markets, plural, we will see

 

[DrStool]

33 minutes ago, fxfox said:

Three things:

1. Those masks give a fals feeling of security.

 

How the fornicate do you know that? Are you a fucking epidemiologist? If a carrier of the virus is wearing a mask, it helps to protect everyone around that person. 

And you can't tell me that a multilayered paper and cloth filter doesn't improve your chances of avoiding having some particles from entering your lungs. That's just fucking common sense. So I'm not buying the bullshit that masks are not effective in reducing people's odds of getting the virus. Places that have used them from the start have the numbers to support that. 

False sense of security my ass. 

But I still love you FxFox. Don't take the swearing personally. I'm from the streets of Philly. It's how we talk. 

Yo. 

[GregFokker]

😄 

Socially distant hugs this AM!

It only took a month without leaving my house to begin to feel a little weird. Another few weeks of this and we'll be capitalizing the "SS"s wherever they occur, and so on.  Where tf is BAREister, anyhoo? And why am I remembering him for the first time, today of all days?

[fxfox]

43 minutes ago, DrStool said:

How the fornicate do you know that? Are you a fucking epidemiologist? If a carrier of the virus is wearing a mask, it helps to protect everyone around that person. 

And you can't tell me that a multilayered paper and cloth filter doesn't improve your chances of avoiding having some particles from entering your lungs. That's just fucking common sense. So I'm not buying the bullshit that masks are not effective in reducing people's odds of getting the virus. Places that have used them from the start have the numbers to support that. 

False sense of security my ass. 

But I still love you FxFox. Don't take the swearing personally. I'm from the streets of Philly. It's how we talk. 

Yo. 

That's not how I meant that. I meant it that way: Those who wear the masks think that once they wear the mask they can behave like virus wouldn't be there at all. So this gives a feeling of false security so to say. "Wear the mask and you can go on like before", that's a false promise.

Of course it is good to wear such things under these current circumstances. I remember that Asians were laughed at cause they did wear them. They were right, we were wrong.