October 2019 repurchase agreements:
Totally exploding and approaching 200,000 in October 2019 and sustaining through the present day.
Eclipsing the 2008 level of 130,000.
The short answer for why they do this is to keep interest rates from skyrocketing. It props up bond markets, money markets, etc. You’d clean out all of those accounts and empty them today if you could get a 10% return on your money. They’re not going to let that happen.
https://fred.stlouisfed.org/series/WORAL
For their part, the Fed is saying the economy is “in a good place” and they “will act as appropriate to sustain the expansion.”
What they mean by that is that the major financial entities are fucked and panicking in the background, the Fed is dumping hundreds of billions into commercial banks because absolutely nobody else will lend to them right now.
Professional analysts from … wait for it … financial firms such as Chase Bank and Morgan Stanley are weighing in to say this is fine and we’re totally not fucked!
Ok. 🤭
If you say so. 🤐
I realize this is purely anecdotal but I visited the trucking company I used to work for this month.
They have plummeted in orders and revenue across all sectors.
Normally if agriculture sucks, John Deere stops shipping tractor parts. If automotive sucks, Detroit Diesel stops shipping engines and so on and so forth, we’d usually have a barometer of how everyone’s doing long before anyone acknowledged the problem and I’m going to tell you this: Everyone is fucked and slowing down and not talking about it yet.
I don’t know if we’re sliding into a recession or if Trump’s tariffs are completely fucking us.
I’d start dumping financial / banking stocks and hold off on the half million dollar house or the new car right now. Save every cent you can right now — for those of you who have any cents to save.
‘Merica, fuck yeah!
I live in America and you can either cry about our unfair and fucked system or you can rape and pillage it like everyone else. You have two classes of investors: The group that’s about to start plunging out of windows, and the group that’s rubbing its hands gleefully and saying “$10,000 houses and condos … here I come.”
It’s about that time to get out of the markets and shore up your cash balances and scoop up some real estate assets. Unless you want to rent it from someone else for $3000 a month in about five years from now. That’s how this works.
They’re gonna blame it on the Bad Orange Man and that would depend on whether this is a consequence of his administration’s tariff war but it’s worse than that:
Nobody will pump money into banking/finance anymore — so why should you?