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Off-Topic Stock Market & Crypto Discussion

SpikeUM said:
Other than lack of confidence/trust, the main issue is the MTM that for example is $100BB at BAC alone. So you could argue that they can raise on the short end, but need to stop QT to ease the MTM. They have already effectively started a form of QE again anyway.
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$300B of QE and that isn't likely to be the end of it.

Dropping rates should help on the MTM side, no? QT would impact everyone's ability to get liquidity, no? That is why I asked.
 
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90scane said:
$300B of QE and that isn't likely to be the end of it.

Dropping rates should help on the MTM side, no? QT would impact everyone's ability to get liquidity, no? That is why I asked.
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We are in unprecedented territory, so I dont know there is a "right" answer. My response was a "King Solomon", raise short term interest rates to fight inflation, but pause and stop QT, which should greatly help the MTM. Inverted yield curve will take care of the rest.
 
ECB and FED have issues. What about BOJ, Canada, Australia? Not even going to ask about China as I don’t believe anything that comes out of China.
 
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90scane said:
ECB and FED have issues. What about BOJ, Canada, Australia? Not even going to ask about China as I don’t believe anything that comes out of China.
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If the Fed and ECB were countries, their balance sheets would make them somewhere around the 4th and 5th largest economies in the world, think about that.
 
Tony4Miami said:
www.reuters.com

Central banks try to calm markets after UBS deal to buy Credit Suisse

UBS will pay more than $3 billion for Credit Suisse and assume up to $5.4 billion in losses, while the Fed, ECB and other central banks issued statements to reassure markets walloped by a banking crisis that started with the collapse of two regional U.S. banks.
www.reuters.com www.reuters.com
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Credit Suisse has been a zombie for decades, not kidding, they should have been taken over literally decades ago. But if it fails, you are looking at 1,000+ down in the Dow. My best guess is the Swiss government will step in, but then the question is, "who is next"?
 
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From Reuters this morning, this makes absolutely no sense, its only going to scare the markets even more.

Holders of Credit Suisse’s Additional Tier 1 bonds will get wiped out and in a controversial move will come secondary to equity holders who will receive at least some UBS shares.
 
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Oil at 65.80 and not showing up at the pump
Fed int. Rate decision Wednesday.
 
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Whatever the Fed does Wed, it’s going to be low. .25 vs 0 isn’t breaking anyone’s bank. I would support a 0 rate change and kick the can to see if inflation is still on a downward trend. If it kicks up before the next Fed meeting go back to raises.
 
SpikeUM said:
From Reuters this morning, this makes absolutely no sense, its only going to scare the markets even more.

Holders of Credit Suisse’s Additional Tier 1 bonds will get wiped out and in a controversial move will come secondary to equity holders who will receive at least some UBS shares.
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$17B gone... nothing to see here.

Your 1000-point drop hasn't happened but J Powell raising rates by .25 should help get that bear market fired up.
 
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SpikeUM said:
From Reuters this morning, this makes absolutely no sense, its only going to scare the markets even more.

Holders of Credit Suisse’s Additional Tier 1 bonds will get wiped out and in a controversial move will come secondary to equity holders who will receive at least some UBS shares.
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Bondholders being wiped out, bank deposits at risk, crypto accounts disappearing, etc. all lead to "if you don't hold it you don't own it."

If people lose faith in the system - watch out!
 
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From my POV, every bank that has failed or is nearing failure are linked to crypto. GEEEEE I wonder if central banks want to control currency and see crypto as a threat. CBDCs will be here by summer.
 
90scane said:
$17B gone... nothing to see here.

Your 1000-point drop hasn't happened but J Powell raising rates by .25 should help get that bear market fired up.
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Unless he raises rates .25 and stipulates he won’t raise afterwards, waiting and seeing if rates drop further.
The safe bet is for him leave rates where they are. Why aggravate the market any further?
 
90scane said:
From my POV, every bank that has failed or is nearing failure are linked to crypto. GEEEEE I wonder if central banks want to control currency and see crypto as a threat. CBDCs will be here by summer.
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Not CS, but they have been poorly managed for decades.

p.s. So have many other international banks (DB, Barclays, etc.)
 
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