Insane levels of intervention. It’s as if the Fed and other central banks have no desire to leave any value in currency whatsoever. Truthfully, there’s no point in time in which a fiat currency survives. It must go to its intrinsic value. I would argue that the ink-filled paper is quite worthless for the most part. At least I could draw on a blank sheet. What will you do with all of your fiat currency? Heat your home? Have a bonfire? Use as bathroom tissue?
The Federal Reserve has kept its cool while things have been melting down. The coverage of the Fed Repo madness has been largely suppressed to keep investors calm. We’ve seen this so many times before though. Just take the many examples all throughout the Financial Crisis. Don’t worry, there’s ample liquidity, Bear Stearns and Lehman Brothers are fine. Don’t worry about AIG’s exposure either. All good for subprime mortgages too! Hey, no need to dwell on the past, right? I mean, everything is totally fine now, isn’t it?
Repo and Reverse Repo Operations – Federal Reserve Bank of New York
Statement Regarding Repurchase Operations – FEDERAL RESERVE BANK of NEW YORK
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Wild Swings in Repo Rates Raise Concerns About Bond Market’s Liquidity – WSJ
Fears axe will fall heaviest in London as HSBC slashes 10,000 jobs
GE freezes pension benefits to cut deficit by up to US$8B – BNN Bloomberg
GE to freeze pensions for about 20,000 employees, stock surges – MarketWatch
GM furloughs more workers as union strike enters fourth week
Ex-Credit Suisse CEO Calls Negative Interest Rates ‘Crazy’ – BNN Bloomberg
Charles Schwab says he would never buy the money-losing companies going public these days
Ex-Nasdaq CEO Bob Greifeld: Recent IPOs remind him of dot-com bubble
The hard data says the US economy is just fine