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Shepherd88
Member since Dec 2013
2329 posts

re: Dow down 700 pts
You’re presuming all this “liquid” money the Fed eased in was all injected into the economy... it was not, it mostly sat in m2


Hussss
Auburn Fan
Living the Dream
Member since Oct 2016
3559 posts

re: Dow down 700 pts
No it was injected into markets, mostly given to the broker dealers (mainly GS & JPM who are the Fed's largest shareholders).
This post was edited on 12/5 at 4:03 pm


Shepherd88
Member since Dec 2013
2329 posts

re: Dow down 700 pts
Lol you have no idea what you’re talking about but let me ask you this. If QE made the economy and markets so good then why isn’t it working for Europe??


Hussss
Auburn Fan
Living the Dream
Member since Oct 2016
3559 posts

re: Dow down 700 pts
Because they aren't the world reserve currency like we are.

This is a global debt issue. You will see deflation first (debt bubble popping - already started) and then hyperinflation once all global fiat currencies start collapsing.
This post was edited on 12/5 at 4:11 pm


LSURussian
LSU Fan
Member since Feb 2005
110101 posts
 Online 

re: Dow down 700 pts
quote:

The Fed is withdrawing (quantitative tightening) 60B a month.
I haven’t checked your $60 billion amount for accuracy but the Fed announced 2 years ago it was going to allow government bonds it bought during the Great Recession to mature and not replace all of the maturing bonds. That’s not really “quantitative tightening.”

It’s just allowing the Fed’s balance sheet to normalize in size.

In spite of that shrinking of its balance sheet the U.S. money supply as measured by M2 reached an all-time high two months ago in October of $14.271 trillion.

Liquidity in the U.S. is doing just fine.


Thib-a-doe Tiger
LSU Fan
LaTour and in BRgetthenet's head
Member since Nov 2012
27335 posts

re: Dow down 700 pts
quote:

They can and will pull bids quickly when we get a 2008 type volatility spike which is coming very soon.

This is what happens when the Fed scared out short sellers for so long.

You need them to buy to cover (liquidity for sellers wanting out).

Most of the holdings are in passive investment vehicles like ETFs.

You will see the biggest flash crash you can imagine.



Holy shit, I’m out of here. Y’all have fun


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LSURussian
LSU Fan
Member since Feb 2005
110101 posts
 Online 

re: Dow down 700 pts
quote:

Because they aren't the world reserve currency like we are.
The euro is the second most widely held reserve currency in the world after the U.S. dollar.

Eta: Which are you: Mises or Zerohedge?
This post was edited on 12/5 at 4:36 pm


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LSURussian
LSU Fan
Member since Feb 2005
110101 posts
 Online 

re: Dow down 700 pts
quote:

mainly GS & JPM who are the Fed's largest shareholders).
How many shares do Goldman and JPM own in the Fed?


Notro
LSU Fan
Alison Brie's Boobs
Member since Sep 2011
7198 posts

re: Dow down 700 pts
quote:

mainly GS & JPM who are the Fed's largest shareholders).

quote:

How many shares do Goldman and JPM own in the Fed?






leoj
Texas A&M Fan
Member since Nov 2010
2797 posts

re: Dow down 700 pts
Lol what is going on in this thread


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Omada
LSU Fan
Member since Jun 2015
623 posts

re: Dow down 700 pts
I remember the $60b figure from somewhere... probably Bloomberg or WSJ. The closest I easily found was this from Bloomberg, but it says $50b. They're doing what you said, but Bloomberg is calling it quantitative tightening. Wouldn't tightening really be selling the bonds before maturity?
quote:

Lol what is going on in this thread

Every now and then a conspiracy nut appears on the MT that is convinced that the banking system is the brainchild of Satan and run by lizard people and the Illuminati and the green teletubby. They usually go away when the market turns positive.


LSURussian
LSU Fan
Member since Feb 2005
110101 posts
 Online 

re: Dow down 700 pts
quote:

Wouldn't tightening really be selling the bonds before maturity?
Yes.

quote:

Every now and then a conspiracy nut appears on the MT that is convinced that the banking system is the brainchild of Satan and run by lizard people and the Illuminati and the green teletubby.


Sigma
Michigan State Fan
Fairhope, AL
Member since Dec 2005
3338 posts

re: Dow down 700 pts
quote:

Every now and then a conspiracy nut appears on the MT that is convinced that the banking system is the brainchild of Satan and run by lizard people and the Illuminati and the green teletubby. They usually go away when the market turns positive.


He posts the same sort of thing on the Auburn board. Gus has been a gold mine of material.


LSURussian
LSU Fan
Member since Feb 2005
110101 posts
 Online 

re: Dow down 700 pts
DJ futures down 340 points.


Thib-a-doe Tiger
LSU Fan
LaTour and in BRgetthenet's head
Member since Nov 2012
27335 posts

re: Dow down 700 pts
It’s the end times


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Omada
LSU Fan
Member since Jun 2015
623 posts

re: Dow down 700 pts
quote:

He posts the same sort of thing on the Auburn board. Gus has been a gold mine of material.
Yeah, I was really close to bringing up this thread of his to say that he might be AUtistic or something. I didn't even notice this thread he started on the SEC Scoreboard shortly after. This guy is something else.


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Omada
LSU Fan
Member since Jun 2015
623 posts

re: Dow down 700 pts
I couldn't find this directly from the CME, just a few different sites.


The drop happened in the first 3 minutes of the futures open. 22k /ES contracts traded in those 3 minutes. 2,100 /YM contracts. ~4,300 /NQ contracts. The other two are smaller because /ES is the most commonly traded index future.


LSURussian
LSU Fan
Member since Feb 2005
110101 posts
 Online 

re: Dow down 700 pts
What’s the significance?


b-rab2
LSU Fan
Lafayette
Member since Dec 2005
11599 posts

re: Dow down 700 pts
Not sure.. Lack of liquidity for sure.. Maybe just a "glitch" opt ex miss today in trading?

Either way, still in FB puts and mostly cash and bond funds.


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Hussss
Auburn Fan
Living the Dream
Member since Oct 2016
3559 posts

re: Dow down 700 pts
You guys can mock all ya want but don't say you weren't warned. I have stated absolutely nothing conspiratorial, research for yourselves. This is critical and is a perfect storm we are headed into. Don't buy dips, only sell rips.

The little threads you pulled up were cute but I was just having fun over there.

Good luck to everyone.
This post was edited on 12/5 at 9:16 pm


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