It’s been very hard to find words this week to describe what is happening on the financial side of the twin pandemics this week. The US Fed finished the week with a USD100 BILLION QE purchase of treasuries and mortgage-backed securities. IN ONE DAY. The most QE got to at the height of the GFC […]
Welcome to an appropriately named “Black Friday”. This week has been quite the show, so far. Before we discuss the what and when of “opportunity” arising from this current calamity, let’s make sure we know where we are. What we’re dealing with here is a collision of two Pandemics. The first is known as the […]
What a week it has been! Where does one even start? Let’s start with a headline we didn’t see: Historic Losses Occur as Wall Street Finally Realizes the Threat That the Coronavirus Poses to the Global Economy Having not watched Financial News on CNBC since about 2009, switching it on last week certainly bought back […]
As we’ve mentioned many times since the Repocalypse of September 2019, the Great Financial Bubble is, one day, going to pop. Since our last note, we’ve been grappling with sharing the very complicated “pointy end” of systemic weakness, in an over-leveraged, derivative laden, fractional reserve financial system of minimal collateral. Like, Corporate Financial Clearing house […]
As big as the win last week was for “Brexit”, as small as the “huge” Trump trade deal is, no news of the last week *Trumps* the gargantuan US Fed promise of 500BILLION to a frozen short term REPO money market over the next few weeks, just to keep the engine running and stock markets […]
Welcome to a new economic week. Last week we were forced to carefully reconsider, not just the continuance of Australian rate (down) trends, as demonstrated in the charts below but also the emergence of “the word”, inflation. What if rates were to fall to 0.50% and the cost of living went up by 5% in […]
Before we start with some commentary around the IMF downgrade to Australian GDP last week, let’s deal with something equally as meaningful to investors. In our last note, we tried to explain the US fed’s solution to a frozen short term lending market, to send fresh money, out of thin air, into said market. And […]
Well, for those waiting for a “tell” of stress in monetary plumbing issues, there is nothing like a blink by major banks. Like “primary dealers” not wanting to fund each other’s short term needs. This actually happened last week and continues through this week, so far. It’s a difficult story to simplify so please excuse […]
It’s fair to say that last weekend’s POTUS Tweetfest was unhelpful to a rapidly deteriorating Global Economy. For those who missed it, here’s a summary below, courtesy of Zerohedge: “Jerome Powell’s Jackson Hole speech was supposed to be the most important event of an otherwise sleepy, August day, after which traders could quietly exit for […]
To some, the main event of the new Australian Financial Year was the RBA’s continued commitment to 0% interest rates for borrowers and -% for depositors. We agree this is important. Before we get to commentary around Aussie rates we’d like to make sure you didn’t miss the move of the Systemically important Global behemoth, […]
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