It’s happening. The calvary is here, via order 12631.
Today I convened individual calls with the CEOs of the nation's six largest banks. See attached statement. pic.twitter.com/YzuSamMyeT
— Steven Mnuchin (@stevenmnuchin1) December 23, 2018
The banks all confirmed ample liquidity is available for lending to consumer and business markets.
Washington — Secretary Mnuchin conducted a series of calls today with the CEOs of the nations six largest banks: Brian Moynihan, Bank of America; Michael Corbat, Citi; David Solomon, Goldman Sachs; Jamie Dimon, JP Morgan Chase, James Gorman, Morgan Stanley; Tim Sloan, Wells Fargo. The CEOs confirmed that they have ample liquidity available for lending to consumer, business markets, and all other market operations. He also confirmed that they have not experienced any clearance or margin issues and that the markets continue to function properly.
Tomorrow, the Secretary will convene a call with the President’s Working Group on financial markets, which he chairs. This includes the Board of Governors of the Federal Reserve System, the Securities and Exchange Commission, and the Commodities Futures Trading Commission. He has also invited the office of the Comptroller of the Currency, and the Federal Deposit Insurance Corporation to participate as well. These key regulators will discuss coordination efforts to assure normal market operations.
“We continue to see strong economic growth in the U.S. economy with robust activity from consumers and business,” stated Secretary Mnuchin and added “With the govemment shutdown, Treasury will have critical employees to maintain its core operations at Fiscal Services, IRS, and other critical functions within the department.”
Mnuchin, likely at the behest of Trump, spoke with leaders of 6 of America’s largest banks to discuss liquidity and the specter of recent ominous happenings. Judging on previous happenings, this happening is the onset of a set of actions purposes to reinforce confidence and get markets going again. Often times, these actions are met with cynicism and viewed as confirmation that something dreadful is about to happen. However, at the end of the long road, wanton chicanery and manipulation will provide for higher equity prices.
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Another flashback…
http://ibankcoin.com/flyblog/2011/07/24/tarp-vote-all-over-again/
They always think they know what they are doing, don’t they?
Um, why would he need to ask banks about liquidity?
To inspire confidence. NOT.
My thoughts exactly.
Like a car dealer advertising, “We don’t sell lemons.”
Like a dating profile stating, “I was never convicted of rape or child molestation.”
Like a doctor stating, “No one has suffered permanent brain damage from this drug.”
Like a President announcing, “Patrick (Shanahan ) has a long list of accomplishments while serving as Deputy (Secretary of Defense)”
We’ll see how this goes at 2pm on Monday, but my gut tells me that if Mnuchin is holding a meeting, things are MUCH worse than even Fly and the generally informed readers of this blog realize. Maybe it is August 2007.
Was Einstein wrong on MC Squared if he flubbed other equations 4 years earlier?
He didn’t flub other equations four years earlier.
If he had, he wouldn’t be Einstein. He’d be Weinstein.
Actually he did, he made some mistakes. He was singularly brilliant, in a class by himself, but he was NOT perfect. Guess what? NO human is.
https://www.businessinsider.com/physics-einstein-got-wrong-2015-11#astronomers-also-use-gravitational-lensing-to-map-dark-matter–an-invisible-substance-that-makes-up-about-85-of-the-universes-mass-they-create-the-maps-by-observing-how-much-dark-matter-bends-visible-light-13
Showtime,
No, but in **investing** time frame is important.
It’s the difference between a doctor telling you, “You’ll likely to die within 9 months.” and me telling you, “You’re going to die.”
Note that I am 100% right, but my information is useless, while the doctor may be wrong, but his information is useful.
Like you go to the doctor for a routine check and he says, “let’s do a chest x-ray” then later says “the x-ray is fine”
Makes you wonder….
I could not resist going short a few /ES contracts @ 2410.
Sold more overnight at 2420 and 2430 because it was painfully obvious that the weak ass bounce was destined to fail.
Unlike 2008 banks are well capitalized and reserve ratios are not the issue. This is confirmation of the obvious.
Investors have been obliterated, Mr. Fly. I foresee something like 2007 again, where it takes them years to to forget the psychic trauma.
Invester psyche is VERY important for both short-term and longer time frames
– Millenials: thought they were geniuses for investing in FAANG. Notably ignored Microsoft because it is seen as “old school”. Do not understand why stocks are dropping. ***Dip buyers.***
– Gen X.: Started investing investign around the DotCom boom. Have seen two big crashes: ***skeptics.*** Probably invested in the latest Bull market after 2010, and the first to bail now. Note that Fly and I are Gen-X. I would conjecture PostNGhost is also GenX.
– Baby Boomers: started investing in ’80s, taking advantage of Reaganomics and falling interest rates, pulling GDP foreward and pushing debt to later generations. Think market will always recover. The second big market crash gave them some pause, but markets DID make new ATH, so they are still ***buy-and-hold*** and probably mostly over the 2008 crash. They will be easily persuaded by bullish talking heads on TV that everything is just fine.
– Greatest generation: already retired, have seen hard times before and bad markets before, probably mostly in ***bonds*** since 2008 and never went back into stocks.
So the key group leading to a REAL market crash is the Baby Boomers, and they haven’t started selling yet. The Bear won’t end until they do. However, we will still have market rallies, which are important for Wall Street to persuade the BBs to keep their money i nthe market.
Seems most on this site are gen X. And most millennials are currently crypto bagholders
RIP the free market. Long live central banking! Actually the free market died 10yrs ago, but I digress. Hey, No cry baby shit, this is the life we’ve chosen!
Why, when you say that, are your lip movements not in synch with your words?
Hey FX. “…the life we’ve chosen…”? Suddenly I’m getting flashbacks to the Roth ‘Moe Greene’ speech! ; D
Epic battle today. Ppt vs foreign capital flight.
Jesus, let’s crash this muhfucka.
@numbers The numbers I crunched showed that you *don’t* need to have an Oh-Shit moment to induce a mini-crash to the tune of more than 10% below the 50-Day MA a la late March 2001. The late August 2015 crash was about general bullshit (European “collapsing” and China growth slowing).
The current conditions aren’t any better than those.
Ok, but 2 notes:
1) Your data was incomplete for anyone to draw that conclusion: You needed to show the Aug 21 closing.
2) The market pretty much recoverd by the end of that week.
2015-08-21 -6.63%
2015-08-24 -9.62% Dow futs down more than 1000 points that morning
2015-08-25 -10.40%
The market recovered rather quickly after most of those mini-crashes. The point is to nail the mini-crashes and buy at the right time.
Shorts can’t be too greedy. Selling all tvix bought in dec. Will look to reaquire. selling half faz. Holding all tza.
Did trump win. Some to watch as that’s a tidal wave change in direction for china. But makes sense as ghost cities program is well past.
https://www.zerohedge.com/news/2018-12-24/china-cutting-tariffs-700-items-amid-push-boost-imports-30-trillion
IWM outperforming. Maybe this is due to a lot of redemptions, ie, paniced retail investors..
I’m waiting this out
So what is really going on?
1) The Treasury Secretary called the bankers for no good reason (bad sign)
2) The Treasury Secretary is lying to the public and never called the bankers (bad sign)
3) The Treasury Secretary called the bankers, but is lying to the public because liquidity is a problem (bad sign)
4) The Treasury Secretary called the bankers, there is no problem, abut he though it was a good idea to publicly state (bad sign)
5) The Treasury Secretary called the bankers, there is no problem, but he is deliberately trying to cause a panic (bad sign)
Any other posible logical conclusions?
As soon as he put up the twit, I had to assume most people would expect his moronic maneuver to backfire. Thus I logically went short and am getting paid *bigly* without breaking a sweat.
This is too much fun.
*tweet
We do not know whether his tweet backfired unless we know what the Goldman Sachs alumni’s intentions were.
So is Mnuchin an idiot? A compulsive liar? Yet another corrupt, self-serving Cabinet official? A shill for bankers?
Interpretations from the above reasons:
1) He’s an idiot like his current boss. Ignore him and trade as if the tweet never happened.
2) Very unlikely, even for a Trump Cabinet member.
3) Strong possibility. Sell everything, go short.
4) See (1). Trade neutrally (bear-rally bias.)
5) Close shorts, go long
Alright. Whatever the causalities are, he twitted some shit that people wanted to sell into and now the market is doing what it’s doing. Good enough for me.
Long!
Market is clearly racist.
Prove me wrong
Regards
Chuck Bennett
You’re a racist. Prove me wrong.
Mrs. Mnuchin is hot in tight black leather pants! Prove me wrong.
Correct. So scratch Number’s number 1 from above …he’ no idiot.
She looks like a Star Wars Villain. Munchin is pure pantywaist
Selling rest of faz and tza. all cash.
I’ve concluded that the reason Mnuchin tweeted is not because of underlying stock market issues (as most people including myself had initially guessed), but instead because of the Government Shutdown. Particularly near the EoY, that can cause havoc with businesses.
Of course, the *FED* is much more critical in this respect than the Tresury, and the FED is not part of the Federal Gov’t. Now you would think Mnuchin would know and understasnd this, but perhaps:
(6) he is about as qualified for his job as the rest of Trump’s January 2019 Cabinet.
In which case, stance is same as CoB Friday: looking for a Bear-market rally. I may buy into the close, but am long at this point and won’t close out anything today.
Merry Christmas
Last comment: look at TSLA, AAPL, AMZN, NFLX charts
They show almost no correlation ,which is very strange. Looks like they are just gap-filling and bouncing up. Very bullish.
Even that POS NFLX finally hit my exact target price that i posted last week (236/237). too bad i didn’t short it again, but I’m sure the Millenials will give me another good opportunity.
How about that!
You can tell the grandkids, about the Christmas Eve Crash of 2018