Posted on 08/04/2020 9:32:35 AM PDT by delta7
"Federal Reserve Chairman Jerome Powell and Randal Quarles, the Vice Chairman for Supervision at the Fed, have stated in testimony before Congress that they would be providing transaction level details of their Section 13(3) Emergency Lending Facilities on a regular, ongoing basis. But the three oldest of those facilities, the Primary Dealer Credit Facility (PDCF), the Commercial Paper Funding Facility (CPFF), and the Money Market Mutual Fund Liquidity Facility (MMLF), which were all created more than four months ago in mid-March, have yet to release any transaction level details to the public.
The Fed is required to provide reports every 30 days on its emergency lending facilities. Those reports are located at this Fed website. If you scroll down, you will find that transaction level reports have been provided for four of the Fed’s emergency lending programs. But the three programs listed above, which are the oldest of the programs, have no transaction level details.
Without the transaction level details, the public has no idea which Wall Street banks or trading firms are borrowing from the Fed. Without this transaction level detail, the public has no way of discerning if one or more particular banks are facing a liquidity squeeze, as happened in September 2008....
(Excerpt) Read more at wallstreetonparade.com ...
There was also this, from just a few days ago...
Top Federal Reserve official says US needs another (hard) lockdown to save economy
“a long hard four years” — quite possible, yes.
at least, some significant difficulties... as a country cannot keep borrowing and trashing its currency forever
Ok, I need some help - - Any guesses on the following?
Will inflation or deflation be a result?
Will the price of homes go up or down?
Will short term treasuries offer protection or inflation protected securities or Vanguard 500 Index funds?
Doom and gloom happens frequently and predictably in the markets, well known crashes: 2001, 2008, 2015 ( was the flattest market in 100 years) , 2020, and on and on. It is not doom and gloom to me, it is opportunity to profit when others lose......for example, my biggest “account” is up 300 percent plus since March simply by monitoring financial events like the overnight repo fiasco which signaled “extreme distress”, then Covid hit and multiplied my gains. Will this current crisis morph into the “ big one”? No idea, but I do know “ TRADE” is CONSTANT since God created our green Earth and each crisis is ALWAYS followed by a much larger crisis....MY timeline is financial mayhem into 2024. Good Luck to all.
Information I have is to expect extreme “ market dislocations and illiquidity” into 2024.
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Just after OR just in time for the medical nonsense(medical cartel not required to follow anti-trust laws + Medicaid/Medicare) to do its belly-up dance.
My opinion, deflation. The government will try to inflate via more stimulus, tax rebates, etc. But velocity will crater with the economy and deflation will rule for a very long time. All assets relative to cash will depreciate unless they can serve as a monetary unit (gold, silver, bitcoin). So real estate will get slammed. Of course, my opinion.
do you have any suggestions for normal folk out here depending on their 401K’s.?....I’m in a conservative investment portfolio designed for people in their 60’s with about a 40/60 stocks/bonds....should I call today and get everything into case?
Markets go up and markets go down and you are right, a sell off is an opportunity to those who actively trade...I do not. I am a conservative investor (40% equities) I reinvest all distributions and rebalance as needed. My portfolio was at its peak in about mid Feb and headed south after that to lose about 18% at its worst level. As of last Friday I have recovered all my losses and moved ahead.
I do not sell ever except to buy another security but I am forced to take the minimum disbursement from my (and wife’s) IRA.
Even with my conservative ways I have over the past 40+ years earned a comfortable after tax income (in the form of growth) just a tad over 9%.
Apparently housing outside democrat run hellholes is booming - everybody who can, wants to escape the rowdies in the cities. There is a shakep coming regarding the sustainability of major cities, at least in the short run. Whatever you do, if you move away, find a community far enough out that no busses run from the cities. And buy guns and ammo.
Those were repos, most paid back by morning or by two weeks. It was not a cumulative amount of money.
It was not as powerful as a nuke, even a suitcase one. MOAB, maybe. There were a half dozen flashes after the first explosion. Maybe the first explosion aerosolized some grain, secondaries tossed some airborne flammables and then Wham.
Now, I wonder who...
“I do know that nobody has confidence in buying its 30-year bonds. Maybe nobody wants its 15 year bonds now?”
I’m not sure what you are trying to say. The Fed buys (and sells) bonds issued by others (mostly the U.S. Treasury, but now also the private sector). It doesn’t issue its own bonds.
Nice post keep up the good work
The best predictor of future inflation is bond prices. This can’t be true when fed distorts the market. No price signals catastrophe ahead
Will house prices go up? This only matters if you are paying 100% cash. Otherwise, will I have a job or enough income to make my monthly payment?
If you don’t you lose everything you built up, whether prices go up or down.
Deflation is so much harder to get out of...
‘man made disasters - obola 1 of them’
obola is by far the biggest man made disaster on earth, and the biggest in the history of the world!
It basically means a repeat of the 70’s for America, where the feds had to offer higher interest rates to get bonds sold. Higher interest rates means high inflation. It also means high unemployment.
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