Category Archives: Central Bank Insanity

Thanks to Central Banks, the Market Is On Fire… But Inflation Comes Next

Stocks are exploding higher! The S&P 500 broke above 3,000 over the weekend. The market looks to have definitively broken out of the channel of the last month and is now starting its next leg up. In the larger picture, … Continue reading

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Wealth Taxes, Cash Grabs, and Other Schemes

They are coming for your money. Let’s cut through all of the day to day developments in the financial system and look at things in the BIG picture. The BIG picture is the global economy has screeched to a halt … Continue reading

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The Dark Plan the Elites Are Unveiling While the World is Distracted by Stocks

Stocks rallied hard yesterday, but failed to break above resistance (red line in the chart below). This suggests that the rally is tired and due for consolidation. We have had two similar phases since the markets bottomed on March 31st-April … Continue reading

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The Fed Has Yet to Buy ANY Corporate Bonds

The Fed lied to us. If you’ll recall, on March 23rd 2020, the Federal Reserve stated that it would begin buying both U.S. Treasuries and corporate bonds with unlimited funds. The announcement was historic in nature: never before in its 107-year history … Continue reading

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The Fed Got the Market to Bottom on a Lie… So What Else is It Lying About?

The Fed lied to us. If you’ll recall, on March 23rd 2020, the Federal Reserve stated that it would begin buying both U.S. Treasuries and corporate bonds with unlimited funds. The announcement was historic in nature: never before in its 107-year history … Continue reading

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The Fed Nationalized the Bond Markets… Are Stocks Next?

Last Thursday the Fed effectively nationalized the U.S. debt markets. On Thursday the Fed announced a $2.3 trillion (with a “T”) monetary program. In its simplest rendering, the Fed announced it would expand its current Quantitative Easing (QE) programs for … Continue reading

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The Fed Just Spent Printed the GDP of Brazil in Six Weeks

Last Thursday the Fed effectively nationalized the U.S. debt markets. On Thursday the Fed announced a $2.3 trillion (with a “T”) monetary program. In its simplest rendering, the Fed announced it would expand its current Quantitative Easing (QE) programs for … Continue reading

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The Fed Has Effectively Nationalized the U.S. Debt Markets… What’s Next?

Last Thursday the Fed effectively nationalized the U.S. debt markets. On Thursday the Fed announced a $2.3 trillion (with a “T”) monetary program. In its simplest rendering, the Fed announced it would expand its current Quantitative Easing (QE) programs for … Continue reading

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Did the Dead Cat Bounce Just End? What’s Next For Stocks?

As I noted in yesterday’s article, the market was bouncing strongly, but “we’re not out of the woods yet.” Stocks slammed into overhead resistance yesterday and then retraced half of the day’s gains. This is not a good look if … Continue reading

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The Two Charts to Watch For Signs of a Legitimate Bottom

As I warned two weeks ago, the Fed is going to start buying “everything”… AKA Weimar lite.  The Fed has faced a choice… either let debt deflation clear the bad debts from the system, even if it means major corporations … Continue reading

Posted in Central Bank Insanity | Comments Off on The Two Charts to Watch For Signs of a Legitimate Bottom

As I warned two weeks ago, the Fed is going to start buying “everything”… AKA Weimar lite.  The Fed has faced a choice… either let debt deflation clear the bad debts from the system, even if it means major corporations … Continue reading

Posted on by The Phoenix | Comments Off on The Fed Had a Choice…and It is Choosing Weimar-Lite. What’s Next?

As I warned two weeks ago, the Fed is going to start buying “everything”… AKA Weimar lite.  The Fed has faced a choice… either let debt deflation clear the bad debts from the system, even if it means major corporations … Continue reading

Posted on by The Phoenix | Comments Off on The Fed is Now Officially Buying “EVERYTHING” But Will It Work?

The coronavirus has burst the Everything Bubble. Regardless of what happens with the economy or the virus, the damage has been done to the massive debt bubble. Across the board, credit and debt markets have ended their bull markets. To … Continue reading

Posted on by The Phoenix | Comments Off on The Everything Bubble Has Burst… Now Comes the Inflationary Storm

Thus far in this crisis, the Fed has: 1)    Cut interest rates from 1.25% to 0.15%. 2)    Launched over $700 billion in Quantitative Easing (QE). 3)    Launched a $1.5 TRILLION repo program. 4)    Launched another $1 trillion repo program. 5)    … Continue reading

Posted on by The Phoenix | Comments Off on Yes, the Fed IS Out of Ammo…For Now.

The markets are bouncing limit up this morning on two things: Bear markets always have face ripper rallies. Is this the start of one… or is this just another one-day blip similar to that which happened on Tuesday? I have … Continue reading

Posted on by The Phoenix | Comments Off on The Fed Went NUCLEAR and It Only Bought a FIVE MINUTE Bounce

The world is facing two crises.  The first, coronavirus, is manufactured, the second, a credit implosion, is very real. The coronavirus panic was 100% made up and manufactured by the media. Globally 100,000 people have been infected and a little … Continue reading

Posted on by The Phoenix | Comments Off on Stocks Cling to Hope, But the Credit Markets Say We’re in a Bear Market…

The markets are bouncing hard in the overnight session. The Trump administration announced last night that they are planning a number of fiscal measures to prop up the economy. Those include a payroll tax, loans to companies that are being … Continue reading

Posted on by The Phoenix | Comments Off on Credit Says a Crisis is Coming… Can Central Banks Stop It?

The markets are bouncing hard in the overnight session. The Trump administration announced last night that they are planning a number of fiscal measures to prop up the economy. Those include a payroll tax, loans to companies that are being … Continue reading

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Forget Coronavirus, the Fed Pulled Has Been Pulling Liquidity From the System Since December

The futures market soared over the weekend on announcements by the Bank of Japan that it would ease monetary conditions if needed to ease the impact of the coronavirus on Japan’s economy. The question for traders this week is whether … Continue reading

Posted in Central Bank Insanity | Comments Off on Forget Coronavirus, the Fed Pulled Has Been Pulling Liquidity From the System Since December

The market dip I wrote about last week has finally hit.  Breadth warned this was coming last week, when it struggled to go vertical mid-week. We have a megaphone formation in place that suggests we’ll see a bit more downside … Continue reading

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