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Markets In Turmoil - When Carry Unwinds
When risk-free assets, with de minimus regulatory capital requirements move like penny stocks, firms are forced to do something about economic risk capital - either derisk (sell assets), or increase capital (delever carry). The ongoing carnage in the world's bond market is creating just such a self-fulfilling problem for risk-assets everywhere (despite simpleton hopes that bond-selling means stock-buying - it doesn't as the marginal buyer is all repo/carry funded and not 'real' cash being rotated). Everywhere one looks, financial markets are turmoiling...
Bonds...
Commodities...
The Dollar...
Stocks...
Charts: Bloomberg
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I'm seeing a recurring and similar theme this morning...
It is a program, after all.....
green by quiting time... The ZH jinx in full play today.
That would be tomorrow. The pattern that has recurred time again is a flat top at the high, twice as long in decline to just break through support then a mysterous force induces a steep rally off a V bottom. Friday's flat top indicates today will continue the decline, unless of course they've changed the script.
It all looks normal to me.
Shit up, shit down and shit the same as it ever was.
Probably just more confidence conditioning....people may be worried a bit but by green close everything will be fine again and confidence reinforced.
Things were never like this when Bernanke the great was the fed chairman. All the chaos started when grandma took the helm. Maybe she should stick to making cookies if she can't find the print button.
Defending the Bernank is like stapling jello to a wall..........inconceivable!!!
Just try the cookies and wait.
Everything will "be right as rain"
you do realize ben was fed head in 07-09, right. he created the depression so he could test his QE theory. you know, the theory where all the fed had to do was print money in the 30's.....
Uhmm, you do recognize sarcasm do you not? BTW, the depression started in 2000. It was simply masked over by debt. Technically it started in 1971 when Nixon cut the dollar from gold and we started sending all of our manufacturing to China.
Yes. I would like to point out Fed is printing, they just lie about it. About 10b in UST a day or 200b a month. They are also still buying MBS, about 20b a month. Again all on the QT and very hush-hush. Check your VGC.
or how about 1913 ?
Bernanke knew what's coming. He abandoned ship to let Capt Yellen go down with the ship.
Yellen is shocked, shocked to find that gambling is going on. /s
I know. when I hear her talk I think, perfect! they've got grandma to take the fall, and who can get too mad at her? it would be like kicking the dog.
all we need is 1 mention of QE4, and all will be fixed. the mention of QE4 even stopped the Ebola outbreak last October.
give credit to the White Dragons & Triad
1-2-3 Print! cause dat's all we know.......
turmoiling, awesome word
the fed balance stmnt moving from 4 T to 5 T, ha no biggie...
lack of liquidity could exasperate this unwind. where oh where is all the underlying collateral? ha, ask the cookie monster, ha...
the markets are now eating their own shit...
need new shit NOW!
the end ?
got gold ?
and lead ?
ENUF IS ENUF, GOTTA GO HAVE SOME FUN - CHOW...
Dude, are you OK?
Breath into the bag.
It's way too early here for someone to be that drunk, gotta be smoking crack.
There are no “risk free” assets.
The alleged science of economics meets the slaughterhouse of reality.
Add "fixed income" as another oxymoron.
If you get fooled again,it's your own fault.
The Who: Won't get fooled again(live in Texas'75)
https://www.youtube.com/watch?v=vwS1tC9Mp00
Couldn't be turmoil... the VIX is still at historic lows, so there is no volatility in these markets... right? Hey... wait a minute...