Liquidity 02 incl QE, Twist, LTRO, APP etc (Jun 14 - Dec 25)

[winston]

Market Liquidity Is Draining From Different Vantage Points

BY Gary Tanashian

Silver, with more cyclical inflation-sensitive characteristics than gold (which is more counter-cyclical with utility during liquidity crises), has broken down of late vs. its monetary daddy.

Gold/Copper ratio (GCR) is not confirming the Gold/Silver ratio’s rise.

There is still liquidity in the markets (and economy), but the trend is going the wrong way for bullish, inflationist casino patrons.

Marshallian K. just turned negative for the first time since 2018, meaning GDP is rising faster than the government’s M2 account.

Yardeni: M2 today is $5 trillion higher than it was before the pandemic. There is just a tremendous liquidity sitting there.

The (monthly chart of the 30yr yield) Continuum tells us that theoretically at least, the Fed still has room to inflate before a red alert goes off and halts this desperate inflationary operation.

Source: INO

https://www.ino.com/blog/2021/08/market ... RmrP4gzZRY

[behappyalways]

Forget The Fed And Jackson Hole: Treasury Is About To Unleash $500 Billion Quantitative Tightening
https://www.zerohedge.com/markets/forge ... tightening

[behappyalways]

this continued cash rebuild is the equivalent of a liquidity drain, however since we are now seeing a liquidity shift out of the Repo facility and into the TGA, it likely won't have much of an impact on asset prices at least until such time as the Fed's taper and/or rate hikes also become a factor..


Treasury Hikes Borrowing Estimate To $1 Trillion This Quarter As It Scrambles To Rebuild Cash
https://www.zerohedge.com/markets/us-tr ... es-rebuild

[winston]

Liquidity

As of mid September, there was still $550 billion of the $1.9 trillion stimulus passed earlier this year, that has yet to be disbursed.

Now we have another $1.2 trillion spend coming down the pike.

All of this, and the Fed is still buying $105 billion bonds a month (i.e. injecting $105 billion into the economy).

Source: Forbes

[behappyalways]

债务上限提高2.5万亿，美国财政部大量发债会咋样
https://m.youtube.com/watch?v=GOtJPXVl5tI

[winston]

U.S. stock market liquidity 'abysmal,' adding to volatility risk

by Saqib Iqbal Ahmed

The liquidity problem is not restricted to individual stocks. E-mini S&P 500 futures, one the world's most widely followed financial instruments, are also flashing a danger sign.

Another liquidity metric shows the share of equity exchange traded funds as a percentage of total equity volumes at 45%, the highest in at least two years.

Trading programs sometimes pull back liquidity when volatility spikes.

Some investors cited the rise of passive investment strategies.

Source: Reuters

https://finance.yahoo.com/news/u-stock- ... 16099.html

[winston]

The Failure of MMT Is Now Evident

by Lance Roberts

$5 Trillion Spent And All I Got Was Inflation

Wages Fail to Keep Up

Debt Does Matter

The idea of MMT sounds excellent in theory. However, debt used for non-productive investments such as social welfare and free college doesn’t produce the economic benefit promised.

Instead, the resulting inflation from the influx of “free money” crimps economic growth. Furthermore, inflation “taxes” the bottom 50 percent of income earners the most.

Source: Epoch Times

https://www.theepochtimes.com/the-failu ... gjdC0PM%3D

[winston]

Pozsar: "We Could Be Looking At The Early Stages Of A Classic Liquidity Crisis"

BY TYLER DURDEN

If you believe that the West can craft sanctions that maximize pain for Russia, while minimizing financial stability risks in the West, you could also believe in unicorns.

Source: Zero Hedge

https://www.zerohedge.com/markets/pozsa ... mpaign=527

[winston]

by behappyalways

QE Is Officially Over

Source: Zero Hedge

https://www.zerohedge.com/markets/qe-officially-over

[winston]

$11 Trillion and Counting: Global Stock Slump May Not Be Over

by Sagarika Jaisinghani and Michael Msika

Historically significant technical levels for the S&P 500 show the index has room to fall nearly 14% more before hitting key support levels.

Nasdaq 100 now trades at about 20-times forward earnings, the lowest since April 2020.

Source: Bloomberg

https://finance.yahoo.com/news/11-trill ... 00467.html