The big question:
Who is going to bail out whom?
-Plunging corporate earnings & household consumption
-Government spending skyrocketing
-Economy falling to piecesThe US government is broke.
Increasing money supply won’t fix anything.
It's time to buy gold & sell stocks. pic.twitter.com/CiAjibBzwy
— Otavio (Tavi) Costa (@TaviCosta) March 29, 2020
M2 money supply only surged like this one other time in history.
October 2008.
We’ve yet to hear of institutions failing. pic.twitter.com/l6UUHPby9E
— Otavio (Tavi) Costa (@TaviCosta) March 29, 2020
Unprecedented.
Commercial & Industrial loans just surged at the highest rate in 73 years.
This level of government intervention is unparalleled with anything we’ve seen in history.
Not to mention:
Every previous spike in loans also preceded a recession. pic.twitter.com/dOvWMxh8ec
— Otavio (Tavi) Costa (@TaviCosta) March 29, 2020
.@Crescat_Capital: China’s the biggest bubble in the world today the biggest credit bubble and currency bubble, and yet we also have the biggest equity stock market bubble here too @crescatkevin @TaviCosta @rauljpanganiban https://t.co/2r1BiLenIo @TheBubbleBubble
— ValueWalk (@valuewalk) March 30, 2020
The Fed’s efforts aren’t designed to bail out companies that might go under but instead to offer a reassuring backstop to private lending markets. But there are growing fears that more cos will see their credit ratings cut as the US slides toward recessionhttps://t.co/whjis1E1z6
— Victoria Guida (@vtg2) March 31, 2020