10 year treasury record low (.936).
REPO (14 day) Markets are over subscribed. IF the FED didn’t step in rates would have been 10%+.
COVID 19 hasn’t even really begun to get rolling.
FED .50 bps drop didn’t do shit.
Deutsche Bank, HSBC might go under this year.
Feels like the wheels might come off this wagon.
The market has been pumped up by the Fed for sometime now. Coronavirus is the needle that will pop the bubble. People just haven’t yet fully accepted that it’s really happening, though the turbulence does indicate that they know it might.
It’s hard for people to absorb such a development all at once, but I think the markets will drop significantly by the end of April. By then, the impact of the virus will feel much more real to everyone, and quarterly financials will reflect the loss of productivity.