In the wake of last week's repo market panic, I realized that there is much more to be said about its implications - and what it all means for you and your money.
First, let's be clear that the repo market is not the bond market, but rather a clever little corner of the market casino designed to allow major banks and a few other non-bank and quasi-government entities to make short-term (often overnight) loans on an as-needed basis.
With this in mind, many readers have naturally asked why the big banks, so flush with post-2008 reserves, would ever need such "loans."
Additionally, other readers, those admittedly new to the variant and rigged mechanizations between D.C. and Wall Street, have been pondering what all of this sudden (and narrow) repo noise has to do with their own money and the broader risks facing the markets.
Well, the answers will likely tick you off.
As to the first question, you are correct to ponder why the big banks, so flush with reserves, need a repo market's overnight loans at all.
In fact, the blunt truth of the matter is they don't.
Welcome back to What’s Happening Now, your weekly guide to what’s going on right now and why it matters to you – and your money. Today, we’re going to look at one of the main recession indicators we track, namely... Read more »
Last Friday, we dove into the U.S. Pension Fund Disaster, where we set up the backdrop for how pension funds can trigger a massive sell-off. Wall Street and pension fund trustees are asking more folks to double down rather than... Read more »
Welcome back to What's Happening Now, your weekly guide to what's going on right now and why it matters to you - and your money.
In this topsy-turvy world of Fed markets rather than stock markets, bad news (as in the economy is worsening) can often translate to good news to investors, because it means more Fed "support" - i.e. the "faking it" policies of a now openly rigged to fail market.
Coming off a week with no less than seven Fed officials, including Fed Chair Jerome Powell, opining on interest rates and the state of the economy, markets closed last week confused for good reason.
We're going to dive into why what the Fed says doesn't matter; rather, it's what it does and how the markets react to it...
There’s no way to beat around the bush with this: Pension funds across the country are massively underfunded, massively allocated to risky stocks, and massive in size. This trio of facts represents a ticking time bomb of demographic and market... Read more »
Markets have seen a rugged stretch lately with the Fed disappointing and tariff wars escalating. Thursday offered some hope as markets rallied on news that the Chinese had acceptably pegged the Yuan, but late morning Friday morning as I pen... Read more »
Welcome back to What’s Happening Now, featured each Monday by Critical Signals Report. In this issue, we’re going to focus on what’s happening beneath the surface, who’s watching, who cares, and who doesn’t… and why this all matters to you.... Read more »
Perhaps the simplest way to define the driving characteristic behind the post-2008 markets boils down to this: They are rigged to fail.
Such an assessment is not intended as a dramatic view, but rather as an empirical and objective fact.
At Critical Signals Report, we recognize that genuine conditions for melt-ups, meltdowns, and even sideways stagnation can present themselves in the near-term.
Despite these gyrations, however, our understanding of history, debt, and current market signals confirms that these markets are ultimately completely and totally rigged - and not in your favor.
For now, and depending upon the short-term decisions (often mistakes) made in D.C. regarding critical matters like rate manipulation, money printing, or even tariff wars and debt resets, any number of speculative bull and bear case scenarios can play out in the near-term.
American investors have never experienced such a profitable run ...
The bull market in stocks, now in its 11th year, is officially the longest on record. Many shareholders have tripled their money since 2009. This bull market has created more U.S. millionaires than ever before. Households with a net worth exceeding $1 million have increased to 11.8 million in 2018 - that's more than the population of Greece or Portugal...
On the surface, the economy is humming, too.
The reported U.S. unemployment rate fell to 3.6%, the lowest it's been in 50 years...
The median household income is now above where it was in 2007 - and climbing...
And U.S. national home prices are holding up.
There's just one BIG problem: More than half of all this new wealth is set to vanish.
That's why we're getting this message out to as many people as possible right now.
Because while the losses could start at any moment (as you'll see today), you don't have to go through this all over again - not when you can get and stay prepared.
If you make the one move we're going to recommend today, you could emerge on the other side even better off than you are right now.