*BESSENT SEES DE-ESCALATION WITH CHINA, SITUATION UNSUSTAINABLE
"The situation we literally created with a series of basic policy errors appears to be unsustainable."
Neat.
It's pretty interesting that the consensus is clearly that both presidential candidates are terrible, yet we just accept that absolutely nothing is going to be done about it, and we have to bow down to this state of affairs. Which is the complete opposite of what a democracy is…
@ozzy_livin@jam_croissant@public I would add @jam_croissant, that Yellen has Powell and Co. over a barrel... how the TBAC issues bonds vs bills is having more impact on financial conditions than Fed hikes. We're in Fiscal Dominance mode because of all the federal debt and spending
In a recent episode of @ForwardGuidance, @crossbordercap states his trading desk at Salomon Brothers received a large equity futures order from the @NewYorkFed in the 1980s. How is this not being discussed more? Is the Fed really involved in directly stabilizing equity markets?…
#SPX total returns in an election year over the past 55 years. With the range of potential outcomes in 2024 it will be absolutely fascinating to see what evolves. @leadlagreport Do we finally see a red year?
@KrishnaMemani Saying it will be judged poorly is not about what they did versus what was expected. It's about how inflation unfolds from here. If their critics are right, they are creating conditions far to easy to avoid a reacceleration of inflation. Time will tell
About spit up my coffee laughing this morning reading the @t1alpha market situation report. Their closing commentary on FOMC yesterday was gold.
"Regardless, markets ripped as the expected stern scolding turned into an "atta boy."
David Kelly on @TopTradersLive highlighting data supporting @jam_croissant thoughts on why we will likely continue to see populism on the rise...
"One of the sad ironies today in America is that if you add up the unemployment rate and the inflation rate, people used to call…
Senator points out that SVB was in part a failure of supervision - was anyone fired? Powell suggests they don't fire people for incompentence.
Good workers can leave to better jobs, but bad workers stay forever and contribute their bad judgement. We all pay the price.
Treasury decided to bail them out. The new facility provides cheap and under secured loans - the exact opposite of good central banking.
A bank can take collateral trading at $0.90 and borrow a $1 from the facility at below market rates.
Why even have bank regs at all?
Fear/uncertainty peak? $VIX touching historic high levels today looking back 20 years (Great Recession aside). Wild $QQQ ramp into the close and aftermarket.
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