As expected, the Western Central Banks + Japan coordinated to not only bailout Credit Suisse via a -75% take under, but to also extend liquidity via swap lines.
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.
All you need to know is the fight to contain inflation has ended. They’ll make it seem like this is normal shit — but nothing could be further from the truth. The banking elites are in panic mode to contain the collapse to just regional banks and unimportant non-systemic companies. Equity holders will be sacrificed in order to preserve the integrity of the system.
I wouldn’t jump the gun and get overly bearish on this news. You have to understand, the pubic perception of QE is positive, since each time they did this it led to higher stock prices.
Will western bankers succeed again in papering over their fuckery? Time will tell. But judging by recent events, they’re undefeated in successfully kicking the can down the road.
On the other hand, the war still wages and China moves closer and closer to Russia and America the spiteful moves closer and closer to thinking an all out war with Russia is a good idea.
NASDAQ FUTS are +80 because muscle memory.
On the bear side, keep an eye on UBS CDS. They spiked hard after the deal for CS was announced. Should they continue lower, we’ll crash.