Monday, December 02, 2019

It's a mad mad world.

That big fourth-quarter growth scare looks like it’s not happening.

With the fed pumping in almost a trillion dollars in overnight liquidity - you'd hope that things would not look as dire. But - NO ONE cares about this now?

It is positively surreal to see everyone shopping their hearts out without a care in the world. But then, I think we have normalized default so much that people just don't care. If you haven't defaulted on something - you are probably the exception.

"The Federal Reserve Bank of New York again saw very strong demand for liquidity aimed at helping financial markets navigate the turn of the year. The demand once again arrived as the Fed added temporary liquidity to financial markets Monday. 

All together the central bank pumped in $97.9 billion in two parts. One was via overnight repurchase agreements, or repos, that totaled $72.9 billion. The other was via 42-day repos." Source.

10 comments:

leaperman said...

retail spending has a good effect on the economy. When people STOP spending and hoard is when things get very scary.

she said: said...

Also when people stop paying the bill for the things they have already bought.

leaperman said...

it's funny that you mention that. Some people think that the amount of TOYS and a big house equals wealth. Big money coming in doesn't mean big money saved; especially if you are a person spending it on payments through credit cards on your bills.
Idiots living from moment to moment instead of putting that 10 to 15 percent away for when (not IF but when) it all hits Murphy and Emperor Mong shows you how G-d can drunk call you as if your name is J-O-B.

Capital of Texas Refugee said...

The only place that involves something that even remotely resembles the mainstream media where I've heard or seen RepoMania(tm) reported has been Max Keiser's show on RT.

He had a show back in early October that spelled out what was to come in a way that very few who weren't seeing the repo numbers live could have known. (October 5: Keiser Report: Make Recessions Great Again.)

Some related background information previously wound up on a separate page at the Keiser Report via Charles Hugh Smith: "The financial storm clouds are gathering ... I'm talking about much more serious structural issues ... yes, I’m talking about the cost structure of our society ..."

Since then, he's had a few shows about this, such as this one from the week before Thanksgiving, and RepoMania(tm) has become so big that it's obviously the New QE3/QE4, but with a specific consumer in mind.

Some of this happened because the previous informal QE lender of choice decided to pull back their interbank lending so they could buy back more of their shares. They even fired some of their less profitable customers (hi again, you bastards) so they'd have more available credit and cash to do these buy-backs.

If you look at what's actually going on with the repo markets, who's allowed to be part of the interbank lending arrangements, who's a bank that's failing that's deemed internationally "too big to fail", you then see that there is exactly one of these banks that's trying to pull everything down.

Nobody seems to want to speak the name of this exactly one bank that's trying to pull down the entire interbank lending system, and so far because of this massive injection of cash into the repo markets, there aren't any bankers throwing themselves off of a certain pair of Twin Towers currently inhabited by this bank.

But that may be yet to come, because it's easier for the opposition to make noises that these are just more convenient suicides ...

leaperman said...

Texas,

Leave dem Morgans alone. Dey do nuttin' wrong. Honest!

Fractional Banking is GOOD for you an' me!

https://clickamericana.com/wp-content/uploads/DDT-is-good-for-me-e-e-1947-750x500.jpg

she said: said...

I was wondering if it was JP Morgan too. After all - they are the third largest stake holder in We Work. Right? That story has gone amazingly quite hasn't it?

But the /rm -rf bank is also a candidate I guess. The logo is the clue.

I find it troubling that no one seems to know or admit who needs this money. It's been a couple of months now.

Capital of Texas Refugee said...

"But the /rm -rf bank is also a candidate I guess ..."

Snarkie wins the non-vegan, organic milk chocolate and macadamia cookie made with King Arthur flour and real butter from Vermont. :-)

"Leave dem Morgans alone. Dey do nuttin' wrong. Honest!"

Leaperman wins a secret prize in a box from the guy hosting the "TV show" Wheel of Fish. :-)

The "Morgans" I will never forgive for forcing out an old music shop in Seattle that had been there for decades, all so they could install yet another Stupid Blue Bank of theirs.

she said: said...

UHF is one of my favorite movies. I still use quotes from it. From that clip actually. Red snapper. Very tasty.

leaperman said...

Dammits. eyes soo stupids!

Capital of Texas Fractional Banking System Refugee said...

Leaperman: Actually, you were right about the Stupid Blue Bank.

They were the one firing some of their customers.

If the Stupid Blue Bank were in the UK, they'd be busy setting up everyone's new conditions for surrender, which of course would be branded with Stupid Blue Bank logos.

But I don't have any more cookies, and Snarkie's hogged all of the red snapper, so you ... GET UNLIMITED NARWHALS! :-)