Are we in a #crisis?
Central bank behavior is absolutely bizarre. pic.twitter.com/8dExik7PdB— Jack (@JackPScott) December 16, 2019
The #Fed is engaged in the biggest emergency operation in the fin. markets since 2008, but the financial media is almost completely silent.
Wtf?
Feels like investors and ordinary citizens are treated like sheeps taken to the slaughter. #repo @CNBC @WSJmarkets @markets
— Tuomas Malinen (@mtmalinen) December 16, 2019
MORGAN STANLEY: The market rally “may be more due to the [Fed] balance sheet reversal than fundamentals,” .. but with $60B/month scheduled through Q1, “we think this presents a powerful positive force that can take stocks well above fair value between now and then.” (Wilson) pic.twitter.com/bEyRVCWneC
— Carl Quintanilla (@carlquintanilla) December 16, 2019
Central bank interference in the market perpetuates itself. Since the Tequila Crisis, the Fed has constantly intervened to protect investors from the folly of their decisions and to boost asset prices. It is a policy, once begun, that takes exponentially more effort to sustain. pic.twitter.com/Zauz895xV7
— Peter Schmidt (The 92ers) (@The92ers) December 16, 2019
HUGE
Finally somebody calling it like it is:
DB: The Fed Will Buy 40% Of US Treasury Net Issuance In 2020 #weimarization #monetization https://t.co/sAnlwg4vng
— Willem Middelkoop (@wmiddelkoop) December 15, 2019
Dec 16th: liquidity impacts (all $ bln):
ON repo: +$36.4/-$56.5 = -$20.1
32 Day term repo: +50.0
Tbill Purchase Settlements: +$7.5
New Issue Treasuries: -$78/+$24 = -$54
Total: -$16.6 (quarterly taxes taking more)
Total Repo O/S= $255 bln (new high)
— Fire Fly (@flowfocus) December 16, 2019