I guess if the mission is to continue to prop up the fake stock market and the banks, then it probably is pretty much being accomplished. Linking as usual @https://nothingnewunderthesun2016.com/
Gonna sound loike a broken record. Debt must be repaid or repudiated. It is now (or very soon) time. Unfortunately it will result in a tremendous lowering of standard of living. Unavoidable and long overdue. I can only sincerely hope Mrs Yellen does NOT believe what she says. I find it inconceivable that she is that stupid. The banks are ALL in trouble, maybe the big ones less so; CRE lenders and creditors are likely in even worse shape; state and municipal governments are increasingly bankrupt, and the National debt is rising one TRILLION every quarter. I am not even an armchair economist (more likely a toilet bowl economist), but how can this end with anything other than collapse?? Its the Great Recxession all over again but 50 times worse. Soft landing?? Like an asteroid has a soft landing.
Her ability to say stupid things has been astounding, such as ....
"QT will continue on autopilot and be as boring as watching paint dry" back in 2017.
"We'll never see another financial crisis in my lifetime." 2019.
"The banks are sound." February, 2023.
and today's "We avoided a recession," winds up in the same spot, I think.
Never bet against Yellen's ignorance unless you're putting your money on evil as the explanation over ignorance, then I'd say you could be right. Every time Yellen says "The banks are strong, and the economy is resilient," it makes me want to stuff all my money under a mattress.
That said, I think your analysis is sound. You can see more over the rim of the toilet bowl than Yellen can from the pilot's lounge at the airport.
Thanks, Chris. One reader pointed out to me today that US banks may just be using the repo facility to arbitrage interest rate differences for a little tidy, safe Fed profit. Same thing could be true in Canada; but in either case, my own radar is a bit unwilling to give the benefit of the doubt to that speculative explanation. It makes sense, and that MAY be all it is; but, as the article you provided avers, so nothing is even known about which party(s) are using the repo/reverse repo facilities. That means it knowing their motives, when you don't even know who THEY are, is pure guesswork. It could be as benign as banks recognizing and opportunity for some risk-free arbitrage, or it could be March, 2023, all over again.
I anticipate that Yellen proclaiming that the airplane is at the terminal will juice the markets a bit. A real estate analyst I follow is predicting residential sales up 15% in 2024, and prices up 5%+. I see many people in my LinkedIn feed proclaiming strength in the economy, and solo real estate investors diving in without a care in the world. I am in several Facebook groups for real estate investors in my state, and many of them are playing the wholesaler game. Many of these investors (I use that term loosely) are buying and flipping properties for the first time. What could go wrong?
I guess if the mission is to continue to prop up the fake stock market and the banks, then it probably is pretty much being accomplished. Linking as usual @https://nothingnewunderthesun2016.com/
True. They've done great at that for a loooong time.
Gonna sound loike a broken record. Debt must be repaid or repudiated. It is now (or very soon) time. Unfortunately it will result in a tremendous lowering of standard of living. Unavoidable and long overdue. I can only sincerely hope Mrs Yellen does NOT believe what she says. I find it inconceivable that she is that stupid. The banks are ALL in trouble, maybe the big ones less so; CRE lenders and creditors are likely in even worse shape; state and municipal governments are increasingly bankrupt, and the National debt is rising one TRILLION every quarter. I am not even an armchair economist (more likely a toilet bowl economist), but how can this end with anything other than collapse?? Its the Great Recxession all over again but 50 times worse. Soft landing?? Like an asteroid has a soft landing.
Her ability to say stupid things has been astounding, such as ....
"QT will continue on autopilot and be as boring as watching paint dry" back in 2017.
"We'll never see another financial crisis in my lifetime." 2019.
"The banks are sound." February, 2023.
and today's "We avoided a recession," winds up in the same spot, I think.
Never bet against Yellen's ignorance unless you're putting your money on evil as the explanation over ignorance, then I'd say you could be right. Every time Yellen says "The banks are strong, and the economy is resilient," it makes me want to stuff all my money under a mattress.
That said, I think your analysis is sound. You can see more over the rim of the toilet bowl than Yellen can from the pilot's lounge at the airport.
Dave thought you might like this https://open.substack.com/pub/jensendavid/p/canadian-financial-institutions-see?utm_source=share&utm_medium=android&r=1p1jxc
Thanks, Chris. One reader pointed out to me today that US banks may just be using the repo facility to arbitrage interest rate differences for a little tidy, safe Fed profit. Same thing could be true in Canada; but in either case, my own radar is a bit unwilling to give the benefit of the doubt to that speculative explanation. It makes sense, and that MAY be all it is; but, as the article you provided avers, so nothing is even known about which party(s) are using the repo/reverse repo facilities. That means it knowing their motives, when you don't even know who THEY are, is pure guesswork. It could be as benign as banks recognizing and opportunity for some risk-free arbitrage, or it could be March, 2023, all over again.
I anticipate that Yellen proclaiming that the airplane is at the terminal will juice the markets a bit. A real estate analyst I follow is predicting residential sales up 15% in 2024, and prices up 5%+. I see many people in my LinkedIn feed proclaiming strength in the economy, and solo real estate investors diving in without a care in the world. I am in several Facebook groups for real estate investors in my state, and many of them are playing the wholesaler game. Many of these investors (I use that term loosely) are buying and flipping properties for the first time. What could go wrong?
It is mind-numbing