Wall Street manufacturing a spectacular crash (e.g ignoring everything, volatility, correction, macro, earning, etc) to get Pre and Post QE.
Unlike GFC, WS think they won't lose money when crash happens.
The macroeconomics evidence on global slowdown in China, Europe, India is so overwhelming. Add to that dismal retune and earnings drop year on year that doesn't square even with a genuine bull market rally.
Wall Street has baited Fed's for pre crash QE (JPM Sept repo Spike) and now aiming for Post crash mother of all QEs
WS wants Fed to fire the QE bazooka after the crash
It makes perfect sense. WS will crash the market bigger than GFC to get bigger QEs.
WS is not interested in pullbacks and minor corrections as Fed won't step in otherwise
Think about it.
WS makes money on vertical upside, no correction. Short the market via put option and naked short when ready.
So they come out of the 2019 crash unscaved and cry wolf
Then Fed steps in injecting the mother of all QEs, WS accumulate cheap stocks after the crash
It makes perfect sense. WS will crash the market bigger than GFC to get bigger QEs.
WS is not interested in pullbacks and minor corrections as Fed won't step in otherwise
That - and they are also blackmailing Trump. They never wanted this trade war either, so they're also cornering the White House big time.
Add to that, Congress has no option but to support a bailout on behalf of their constituents once again...
With the Fed, White House and Congress effectively cornered, there is a lot in that.
Most of the big money has already been taken out, sitting in cash, safety plays or set up for potential shorts. Only the little people's 401k's are left swilling around in the black hole financial advisers have thrown them into, swirling around like inside a washing machine daily now as such advisers buy and sell and buy and sell the same shares to each other to create this ridiculous looking chart bound to crash. The only reason all still holds up is Trump's plunge protection team buying up the market when things get edgy, so Wall Street is shorting the US Treasury too....
Stocks Market is a multifaceted financial system that is influenced by macroeconomics, Geo, politics, central banks policy, FEDs QEs and more. All Savvy investors/traders alike need to do their homework before making a Buy or Sell decision. There is a mountain of evidence about market manipulation ALGO that are well documented. Investors trust their hard earned money to financial institution when they buy stocks and they deserve to know if their money is safe.
This is tweet from Senator Elizabeth Warren when she found out JPM caused the Fed Repo Spike in September
Elizabeth Warren
@SenWarren
· Oct 30
Sec. @stevenmnuchin1, you don’t work for Jamie Dimon & your Wall St buddies – you work for the American people. Do your job to protect our economy, explain what went wrong in the markets, & stop looking for excuses to roll back rules that help prevent another financial crisis.
@shy_glizzy, We are not here to debate politics. The TV community value is drawn from research and diligence of different experts in Charting and Macroeconomics. Financial systems operates within the boundary of macroeconomics, so actions and decisions of publicly listed companies are disclosed via SEC and other regulatory bodies to keep the share holders (Traders, investors) informed. We are here to learn from one another and protect our investments, pensions, 401k pension funds. Unlike traders, investors have a long term view waiting for 401k pension to pay for their retirement. My expertises is in Macroeconomics research which is by the way is a highly paid jobs by many Wall Street firms. I intend to add value to the community and appreciate constructive comments. You may have a Long position and dislike hearing the truth that matters to many others. Fair enough. don't pay attention but refrain form mis characterisation as per TV guidelines.
@shy_glizzy, The gist of it is that the latest market rally since Oct is solely because of Fed's buying $60 billion of short term debt T-Bill each month since September Repo Spike when overnight rate jumped form the Fed 2% to 10% when overnight lenders withheld money for large trade settlement. This action alone caused shortage in banks liquidity that is tracked by the US FED. So Fed had to step in since then to inject $60 billion that is now Turing into $120 B to keep the private banks and geed funds lenders above the SEC requirement. So essentially some private bankers forced the US FED to Strat a QE before there is any crisis. The QEs are usually used after the crash like GFC to bounce back the market. Help this explain it further.
shy_glizzy
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@stockmarketupdate, I agree where you are coming from, but why would they keep propping it up at THESE prices if it is going to ultimately drop?
stockmarketupdate
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@shy_glizzy, Hence my analysis. It seems some private firms taking an advantage of perfect monetary tool (QE) that is one of the Fed's tool in toolbox to rescue the US economy in case of a crash. It begs the question, why the US with ok economy and Stocks at all time high (52 weeks high most sectors even utility) need a QE? Why since Oct there is shortage of liquidity overnight where there is abundance or liquidity in the day time? Why Fed is forced to plan to inject $110 billion per month till Feb 2020 when market is at all time high? There is only one plausible explanation, some private bankers pocketing the QE over $600 billion and hoping to get more QE (giveaway money) from Fed when market crashes. Market has always been and will be about how to make money and Fed QE money worth hundred time more then regular healthy company profits.
shy_glizzy
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@stockmarketupdate, Two questions:
-What does pocketing mean?
- And if the Fed prints more money through QE won't that increase the money supply, thus increase the value of the dollar?
Add to that, Congress has no option but to support a bailout on behalf of their constituents once again...
With the Fed, White House and Congress effectively cornered, there is a lot in that.
Most of the big money has already been taken out, sitting in cash, safety plays or set up for potential shorts. Only the little people's 401k's are left swilling around in the black hole financial advisers have thrown them into, swirling around like inside a washing machine daily now as such advisers buy and sell and buy and sell the same shares to each other to create this ridiculous looking chart bound to crash. The only reason all still holds up is Trump's plunge protection team buying up the market when things get edgy, so Wall Street is shorting the US Treasury too....