Sorry for the late post. But we all knew this was coming.
Fed: “…to support American businesses and households, the Federal Reserve Board on Sunday announced it will make available additional funding to eligible depository institutions to help assure banks have the ability to meet the needs of all their depositors. This action will bolster the capacity of the banking system to safeguard deposits and ensure the ongoing provision of money and credit to the economy.”
The Fed is starting out with a $25b fund to let banks exchange their underwater bonds for cash. Do not be fooled by the low number. They will scale it to a GORILLION dollars if they need to.
NASDAQ FUTS are +165. VCs will be bailed out. BIG TECH will have their way with your budget. There is no surprise here.
But what may complicate things is the inflation issue in conjunction with FOMC’s job to fight it — but at the same time attempting to stop bonds from dropping via rate hikes.
All eyes on the bond market. If we begin to see yields rising — markets might revoke this entire rally and begin to PRESS the faces of the Fed into the hot griddle of vengeance.
One issue is to monitor is the CASH SORTING issues at Schwab.
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Gotta love it. Three bank failures in less than a week is …. bullish.
Somehow feels like a pump ‘n dump.
Fighting the effects of inflation with inflation. Someone will eventually take the fall for these soy latte sippers. Housing market? Construction Joe Six-Pack won’t get a bailout.
All eyes on the 10y