Beware The “Bull Trap”?
J Mark Ackerman | Mar 16, 2020 03:38AM ET
Beware The “Bull Trap”?
The FED’s emergency rate cut tonight has created more FEAR and PANIC globally and is now sending the global markets into a tail spin! Again, the FED’s inopportune timing of a rate cut has caused global markets to sell off tonight to limit down of ----5.00 % on the YM Futures. "The FED has spent all of its bullets saying it will increase its holdings of U.S. government bonds by at least $500 billion and its holdings of agency mortgage-backed securities by at least $200 billion” . Will these moves lower the cost of longer-term debt borrowing and support the housing market as it did during and after the 2008 financial crisis?
As Treasury stress spreads swaps liquidity slumps. Liquidity continued to worsen in US dollar interest rate swap markets. Three large buy-side swaps users reported pricing ‘dislocations’, widening spreads and a dwindling number of dealers willing to provide quotes. Net liquidity has dried up in instruments as it had during the 2008 financial crisis.
The FED has just created a very big problem for all of us.
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https://www.zerohedge.com/markets/pray-powell-world-hit-12-trillion-dollar-margin-call
Is this a true correction or the start of something more significant?.
According to the “corporate media” most of virus infections are in five major areas: NYC, Boston, Washington D.C., San Francisco / Bay Area and Seattle
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There is still not enough FEAR in the markets to call a bottom.
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