“The market stops panicking when central banks start panicking”
In January 2022, just around the time the Fed was about to launch its most aggressive tightening campaign since Volcker, we warned “remember, every Fed tightening cycle ends in disaster and then, much more Fed easing”
Remember, every Fed tightening cycle ends in disaster and then, much more Fed easing pic.twitter.com/zX7Dur8nLG
— zerohedge (@zerohedge) January 5, 2022
Fast forward to just over a week ago, when the Fed tightening cycle indeed ended in disaster when SIVB became the first (of many) banks to fail, a chain of dominoes that culminated with today’s collapse of Credit Suisse – a systematically important bank with $600BN in assets.
And then, at 5pm, the easing officially began, because while a bunch of laughable macrotourists were arguing on FinTwit whether last week’s record surge in the Fed’s discount window was QE or wasn’t QE (answer: it didn’t matter, because as we said, it assured what comes next), the Fed finally capitulated, just as we warned over and over and over that it would…
Every time FRAOIS has been here, the Fed capitulated
— zerohedge (@zerohedge) March 17, 2023
If the Fed does not contain the regional bank collapse, there will be another great depression.
Small/medium banks account for 50% of US commercial and industrial lending, 60% of residential real estate lending, 80% of commercial real estate lending, and 45% of consumer lending pic.twitter.com/wzTMHxSnXI
— zerohedge (@zerohedge) March 18, 2023
"Fed either pivots too early and turns dovish in to a high inflation scenario which is fairly bearish the USD thus helping gold or they pivot too late and cause a much bigger recession than is priced in right now, resulting flight to safety helps gold." – Goldman
— zerohedge (@zerohedge) January 5, 2023
… and at exactly 5pm the Fed announced “coordinated central bank action to enhance the provision of U.S. dollar liquidity” by opening daily Dollar Swap lines with all major central banks, in a carbon copy repeat of the Fed’s panicked post-covid crisis policy response playbook.
The Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, the Federal Reserve, and the Swiss National Bank are today announcing a coordinated action to enhance the provision of liquidity via the standing U.S. dollar liquidity swap line arrangements.
To improve the swap lines’ effectiveness in providing U.S. dollar funding, the central banks currently offering U.S. dollar operations have agreed to increase the frequency of 7-day maturity operations from weekly to daily. These daily operations will commence on Monday, March 20, 2023, and will continue at least through the end of April.
The network of swap lines among these central banks is a set of available standing facilities and serve as an important liquidity backstop to ease strains in global funding markets, thereby helping to mitigate the effects of such strains on the supply of credit to households and businesses.
And once the USD swap lines are reopened, the rest of the cavalry follows: rate cuts, QE (the real stuff, not that Discount Window nonsense), etc, etc. In fact, we have already seen a near record surge in reserve injections:
The Fed may as well formalize it now and at least preserve some confidence in the banking sector, even if it means destroying all confidence left in the “inflation fighting” Fed, with all those whose were in charge handing in their resignation for their catastrophic handling of this bank crisis.
Powell/Yellen out. Just a matter of time now
— zerohedge (@zerohedge) March 19, 2023
Then again, maybe they should just wait until he Fed hikes its inflation target to 3% or more – something else we predicted…
At some point Fed will concede it has no control over supply. That's when we will start getting leaks of raising the inflation target
— zerohedge (@zerohedge) June 21, 2022
… because now that we are back in liquidity injection mode, well, say goodbye to hopes of seeing affordable eggs every again.
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And just like that, stock futures have reversed and are now positive. Hooray! Everything is fixed.
(Celebration by Kool & The Gang playing in the background.)
Oh, and what the heck. About a girl, but, applies to the planet-wide finance racket, too:
I see that nothin’s changed
Insist on playing games
Some waste of time you are
And you’re so popular
Well this is it you bitch
I’ve got to make a switch
You find some other john
I know what’s goin’ on
Your move
What do I have to lose?
Stalemate
Too late, too late
I thought you were for real
Just one more rip-off deal
Don’t give me all that crap
I just escaped your trap
You think you see the joke
But you’re just chasin’ smoke
Cos now the thrill is gone
I know what’s goin’ on
Good move
What do I have to lose?
Stalemate
Too late, too late
Misunderstanding me
The way you felt so free
I’m gonna jump the gun
I’m gonna cut an’ run
Your credibility
Don’t cut no ice with me
You’re just a feeble con
I know what’s goin’ on
I am guessing this was released on a Sunday for a reason and not a good one.
I’ve come to the conclusion that the collapse we’ve been expecting for so long will never happen. The Fed just has too many ways to keep the house of cards propped up. Look at how long they’ve kept this going! It’s mind-boggling.
Yes, it is mind boggling. However, I can just FEEL it that something will crack and they will lose control. I put a lot of stock into my intuition.
Underestimate a woman’s intuition at your own peril.
“How did you go bankrupt?”
Two ways. Gradually, then suddenly.”
― Ernest Hemingway, The Sun Also Rises
Nothing is forever. The pendulum returns. The sun also rises.
The Fed is between a rock and hard place. If the don’t go back to throwing money at the banks, then more banks will fail. If they do, then $10 dz eggs are in the near future.
I am starting to get a sense for how they can just keep adding plates to their juggling act.
That’s how the psychopaths get you:
They have more endurance in lying (and changing the rules), than you have in trying to make sense out of it.
So, we’re easing now? I thought the world was coming to an end.
Yes, QE has returned.
Ponzi
Print more and more promissory notes of ever decreasing value to hand out to “investors”.
Quantitative sleazing
Modern Monetary Theory: Ones And Zeroes Are What’s For Dinner.
The guys, who up to one week ago said the Fed would not pivot this time, are now pivoting their opinions.
We knew this would happen. But, all good (sarc) things always come to an end, per Herb Stein’s dictum…”until it stops”.
Clif High sez early May.
He also entertains the existence of ETs, so we will see.
There could be “ET’s” and UFO’s of the flying saucer type but they aren’t likely from another galaxy – speed of light limit and all that jazz.
Now since we live on a flat plane and aren’t allowed to go past the ice wall- or even close to it-see Antarctic Treaty- there may well be ET’s coming here from beyond the ice wall. The plane is likely much bigger than the known world.
Could you enlarge on your comment and explain the concepts that do not fit the mainstream narrative that we have all be taught? Maybe a longer, more detailed comment or perhaps submit an essay to the admin for publication on this website? Even if you don’t care to explain in detail your cosmology and its origins, at least tell us about the flat plane, the ice wall, and the Antarctic Treaty.
Inquiring minds want to know. The people who read the essays and articles on this site seem to include a fair number of those who are willing to learn new facts and consider new ideas.
Technically, angels ARE “extra terrestrials”.
Earth is NOT “their first Estate”. That much IS documented.
On top of the bailout/Bail in of CS, it looks like we are all fucked again.
We have always been fucked it’s just that the fuckery is getting to big for even the controllers to hide from even some “normies” who are the last to notice anything.
People honestly believe this was about a bank failing because of incompetence. Again.
Every time a big bank fails, the story about how this or that happened because of one or more peoples’ mistakes gets rolled out, some low-level apparatchiks take the fall, and the usual doomsayers say The End is Nigh.
Nobody takes a look at what the bank was doing, which is what all of them do: gamble with money that isn’t theirs interest-free; this is why the Fed’s interest rate is of such importance. SVB bought high and then when the Fed raised rates, they were stuck with billions they could not pay back when their depositors — some of the largest corporations in the world — called in their markers, because they set this all up.
In other words, SVB was another short-sold ponzi that was set up to fail just in time to steal more money from the middle class, who will end up footing the bill. Just like 9/11, its Tribal depositors were tipped off and able to sell right before the boom. None of them lost a penny.
This was just the beginning. Remember how small businesses had to close, forever, once the CONVID madness came, but Wal-Mart and Target and the liquor stores were safe, somehow? Same principle at work here.
More and more smaller banks are going to fail, or be absorbed by one of the majors. The less choices you have for depositing your money, the more restrictions you will have on it, until finally you will not have it anymore.
And be happy, supposedly.
No, I think everyone reading this knows this is just another reaping of the underclasses.
Exactly
The Fed ALWAYS overreacts too late.
Falsely-framed argument. The Fed is the cause of all of this. End it.
Weds is FOMC, lets see what happens…
I doubt it can last…Weimar beckons…
I would like to see Yellen pushed out. She talks weird.
Lol! She sounds like a grandma trying to explain things to a 2 year old.
Ooowee! Q E 2 ! Or is it 3?
Ooowee…whatcha gonna do with your stimulus check this time, huh?
Ooowee! I’m gonna blow mine at Blips & Chitz! Hope I see ya there!
Ooowee!