Bulls, it turns out that in 2022 you were fed a big load of bull shit.
What was supposed to be an imminent Fed bailout turned out to be record tightening in a recessionary bear market.
This is called GLOBAL LIQUIDATION mode. pic.twitter.com/q83D8f7phb
— Mac10 (@SuburbanDrone) June 16, 2022
World’s Central Banks Unleash Most Hawkish Campaign Since 1980s
The world’s central bankers are unleashing what may prove to be the most aggressive tightening of monetary policy since the 1980s, risking recessions and roiling financial markets as they rush to tackle the surge in inflation they didn’t see coming.
Today is a massive monthly OPEX so anything could happen. Algos love to crush vol ahead of long weekends to monetize time decay (theta). However, the S&P is camped at the 200 week moving average.
WEEKEND RISK IS HIGH. pic.twitter.com/PrgEWzDvxJ
— Mac10 (@SuburbanDrone) June 17, 2022
The S&P 500 is within 1% of its 2021 lows.
Everyone who owns any stock is basically underwater and losing more money daily.
If 1 of 10 investors say “fuck it, bear market I’m out”, that’s a 4+ trillion dollar sell order.
Who can absorb that? The Ponzi is going to crash.
— Endless Capital (@endless_frank) June 16, 2022
We get to watch the collapse of the financial system.
Hope you're all prepared.
— conspiracybot (@conspiracyb0t) June 17, 2022
Reminder: The Fed will only admit to a recession once we're already deep in it.
— Sven Henrich (@NorthmanTrader) June 16, 2022
More than 90% of stocks in the S&P 500 declined today.
It's the 5th time in the past 7 days.
Since 1928, there have been exactly 0 precedents. This is the most overwhelming display of selling in history.
— Jason Goepfert (@jasongoepfert) June 16, 2022
Euro Crisis Could Return: Top European Economist Sounds Alarm After ECB Panic Meeting
Christine Lagarde, ECB President, earlier sounded the alarm that the European economic community could be heading back to dark economic days, with the bank warning of “resurgent fragmentation risks” in a statement. Following the emergency meeting on Wednesday, the ECB pledged fresh measures to limit sell-offs in the bond market.
Inflation Is Expected To Remain High Later This Year Even As the Economy Slows and Layoffs Rise: NYT
Millions of Americans are feeling similarly stuck as their savings run low and their cost of living runs high. Now, the economy appears poised to slow — potentially sharply — in ways that could limit wage growth and cause job losses even as prices remain elevated.
A Perfect Storm in Banking Is Brewing
Now that interest rates are rising with much further to go, the global banking system faces a crisis on a scale like no other in history.
Full Force of Central Banks Siphoning World Liquidity
Coordinated or not ahead of this month’s G7 summit, global central banks are accelerating interest rate hikes but also actively draining the giant pool of cash swilling around world markets and buoying currencies to stymie imported inflation. The worrying bit for investors is that it may only be about half-way through and the aggressive tightening unveiled this week shows little…
*US MORTGAGE RATES SURGE TO 5.78% IN BIGGEST JUMP SINCE 1987 pic.twitter.com/9VudeivfgI
— Brian Chappatta (@BChappatta) June 16, 2022
May industrial production rose just .2%, half the rise expected, while factory output fell .1%, verses expectations of a .5% gain. Clearly #inflation has already pushed the U.S. #economy into a #recession. Plus, lower production means less supply and higher prices. #Stagflation.
— Peter Schiff (@PeterSchiff) June 17, 2022
US HY OAS closed above 500bps for the first time since late-2020, when it was on the way down. The last time it closed above in a broader uptrend was 28 Feb 2020.
Is the market finally thinking the Fed doesn't have its back? pic.twitter.com/khF96xwDzw
— 𝐄𝐟𝐟𝐢𝐜𝐢𝐞𝐧𝐭 𝐌𝐚𝐫𝐤𝐞𝐭 𝐇𝐲𝐩𝐞 (@EffMktHype) June 17, 2022
No, this is the MARGINAL mortgage payment. If you’re out, Jerome Powell has assured you stay out. If you’re in, you’re stuck. Sounds like a solution in search of a problem… or designed to create one. t.co/hgPZHbuflm
— Michael (@profplum99) June 17, 2022
BURRY’S Final Warning: Every Market is a Trap Doomed to Crash Much Lower…