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⚠️The stock market's 30% gain in 2019 was part backed by the Fed's decision to cut US interest rates 3x & inject more than $1 TRILLION of temporary financing into the repo market.

It also added more than $400B to its balance sheet in the fourth quarter.

axios.com/federal-reserv…
^^ h/t @911CORLEBRA777
1/18/20 Repo operations already have caused the Fed to buy a net $400 billion worth of securities, after Chairman Jerome Powell shrank the Fed’s balance sheet by $700 billion.

marketwatch.com/story/the-fede…
Powell and the Fed have repeatedly denied this is a new phase of “quantitative easing (QE),” three rounds of which added $3.6 trillion to the Fed’s balance sheet in the years after the financial crisis.

marketwatch.com/story/the-fede…
“Analysts on QE (+other indicators) forecast an epic crash.”

Primary Dealers Show Big Demand for Longer-Term Repos
Intervention by New York Fed leads to little change in overall temporary liquidity

wsj.com/articles/prima…
Democrats Query Powell on Regulatory Response to Repo Blowup

bloomberg.com/news/articles/…
While Trump spent the year boasting that the U.S. job market was the strongest it's ever been, 2019 saw job growth slow to an eight-year low.

msnbc.com/rachel-maddow-…
What's more, the best year for jobs during Trump's presidency -- 2.31 million in 2018 -- fails to reach the job growth in any of the three final years of Barack Obama's presidency.

msnbc.com/rachel-maddow-…
Trump has now been in office for 36 full months -- Feb 2017 >Jan 2020 -- and in that time, the economy has created 6.56 million jobs.

In the 36 months preceding Trump's presidency -- February 2014 to January 2017 -- the economy created 8.08 million jobs.

msnbc.com/rachel-maddow-…
May 2018: Trump Signs Biggest Rollback of Bank Rules Since Dodd-Frank Act
5/24/2018, 9:20:10 AM

bloomberg.com/news/articles/…
1/31/20 The Federal Reserve on Thursday approved a proposal to loosen the financial-crisis era Volcker Rule, that prevents banks from investing in venture capital funds.

📌The Volcker Rule was created after the 2008 financial meltdown.

courthousenews.com/federal-reserv…
2008 financial crisis

📌As the 2008 financial crisis shook the nation, Trump’s team saw payoff

📌Trump himself crowed about the investment profits that lay ahead on the eve of Wall Street collapse, heralded 10 years ago by Lehman Brothers' failure.

politico.com/story/2018/09/…
5 Top Investors Who Profited From The Global Financial Crisis

📌John Paulson
📌Jamie Dimon - JPMorgan
📌Carl Icahn (Fmr Trump Advisor)
Ben Bernanke
Warren Buffett

investopedia.com/financial-edge…
Steven Mnuchin, now Treasury secretary, led a group of investors who bought a failed thrift with government help and then sold it at a profit.

politico.com/story/2018/09/…
Commerce Secretary Wilbur Ross, then CEO of a buyout firm, also made money from U.S.-backed purchases of failed banks.

politico.com/story/2018/09/…
Former White House economic adviser Gary Cohn, then president of Goldman Sachs, once touted that the investment bank brought in $373 million in a single day betting against the mortgage market.

politico.com/story/2018/09/…
Jamie Dimon & JP Morgan are the big winners on Wall Street since Lehman, tripling investors' 💰

Under CEO Jamie Dimon, JP Morgan outmaneuvered rivals during the 2008 financial crisis to eventually become the world's biggest bank by market capitalization.
cnbc.com/2018/09/11/jam…
7/10/19: With Wall Street's Secret Shackles Gone, Dimon Prowls for Deals, thanks to the Trump adm’s reg roll backs to pre 2008 levels of unshackled deal making.

Fun fact: 2017 Iceland unshackled their banks to pre crash levels of anything goes.

bloomberg.com/news/articles/…
Mortgage rates have dropped to the lowest levels since before the 2016 presidential election.

marketwatch.com/story/mortgage…
Fannie Mae, Freddie Mac to Stop Accepting Libor Mortgages
Housing-finance giants will soon accept mortgages based on the secured overnight financing rate

wsj.com/articles/fanni…
1/20/20

Many jumbo borrowers have not paid for years. 

📌As a result, the jumbo-mortgage market now is a ticking time bomb. Lenders, mortgage servicers, investors and homeowners would be wise to prepare.    

marketwatch.com/story/this-gho…
Recent Hx Stock market crashes

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Market watch 2019/2020
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More from @karolcummins see all

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Karol Cummins
@karolcummins
💣BuckUpPatriots💣

Trump will re­lease a $4.8 tril­lion bud­get propos­ing steep cuts to Medicare & Medicaid & for­eign aid & higher out­lays for de­fense & vet­er­ans.

The stock market's 30% gain in 2019 was part backed by the Fed's decision to cut US interest rates 3x &
💣BuckUpPatriots2💣

Inject more than $1 TRILLION of temporary financing into the repo market.

It also added more than $400B to its balance sheet in the 4th qtr.

DEMs Query Powell on Regulatory Response to Repo Blowup

Klobuchar Raises $2 Million Off Strong Debate Performance
💣BuckUpPatriots3💣

Fight over Trump’s impeachment shifts to battle over the impact on Senate races

The Senate’s I trial of Trump may have ended, but the political fallout will continue for weeks & possibly months to come.

Twitter says Facebook, Messenger accounts hacked
Read 57 tweets
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Karol Cummins
@karolcummins
🔥ListenUp🔥

James Carville: The fate of the world depends on the Democrats getting their sh*t together and winning in November.

WE HAVE TO BEAT TRUMP.

And so far, I don’t like what I see.

And a lot of people I talk to feel the same way.

@dnc @tomperez @SpeakerPelosi
🔥ListenUp2🔥

Going forward I will quote Carville. No quotes = me.

We won in 2018 b/c we stayed narrowly focused on issues near & dear to the ♥️s of American families.

To win in 2020, it is imperative we continue to focus on core issues: Wages, safety & HC: making ends meet.
🔥ListenUp3🔥

“We have candidates (Warren) on the debate stage talking about open borders & decriminalizing illegal immigration.“

This strikes fear in the hearts of Americans L, R & C.

Open borders benefits TOC — they wont have to ‘smuggle” anymore they can just right walk in
Read 69 tweets
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Karol Cummins
@karolcummins
This is a redux of the 1992 #PassportGate, wherein personnel in GHWB’s adm used gov’t resources to look for dirt to smear Bill Clinton, GHWB’s political oppo’t.

Same players: then AG Bill Barr appt’d Joe diGenova (now Firtash’s atty) as Special Counsel to “investigate.”
1992 PassPortGate

GWHB Adm Scandal About US Gov’t File Search to dig up dirt on WJC In 1992

Wasn't Illegal Says then AG Bill Barr’s Special Prosecutor Joe diGenova.

nytimes.com/1995/12/01/us/…
Barr appointed DiGenova as special prosecutor to probe whether senior officials in the GHWB WH instigated, encouraged or acquiesced in attempts to use gov’t records & workers to influence the outcome of 1992 presidential election
washingtonpost.com/archive/opinio…
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DoubleLine Capital
@DLineCap
DoubleLine CEO Jeffrey Gundlach presents his 2020 "Just Markets" webcast.

Follow along here for live updates!

#JustMarkets2020
Jeffrey Gundlach announces "our own Round Table" bringing together Jeffrey as host, Jeffrey Sherman as moderator and special guests @DiMartinoBooth @biancoresearch @EconguyRosie, Ed Hyman & Steve Romick.

First Video goes live Thursday!

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@DiMartinoBooth @biancoresearch @EconguyRosie Jeffrey Gundlach: Japan volume of neg yielding debt increased in 2019.

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David Jensen
@RealDavidJensen
-

Repo Market size: $5T

US Bank holdings of interest rate derivatives: $210T

(Goldman: $42.2T; JPM $39.5T; CITI $34.4T; etc)

Understand where this is going now that Fed has collapsed Money Supply for > 2.5 years.

zerohedge.com/markets/fed-in… #fintwit #gold @LouDobbs @MacroMorning
@LouDobbs @MacroMorning Now that the #Fed has collapsed Money Supply, it will print $Trillions upon $Trillions to try to control interest rates - & it will fail.

The long bond holders will be hammered both on yield as well as by currency debasement.

zerohedge.com/economics/worl… #fintwit #gold
@LouDobbs @MacroMorning US banks hold $210T of interest rate Derivatives on their books.

As #Fed tightens (which it has for >2.5 years) after a decade of loose money, these rate bets become destabilized.

" why are banks still so desperate for liquidity...?"

$210T... scale.

zerohedge.com/markets/feds-s…
Read 8 tweets
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Rajeev Pawar
@RajeevthePawar
Hearing the RBI Guv and the #Fed Chair talk over the past 24 hrs two interesting differences come through. Dr. Das is much more confident though reserved in committing to numbers. Jay Powell is more transparent but does not exude confidence in his words. /1

#RBI #India #ratecut
RBI Guv was quite clear that there is limited fiscal space. Wanted spending esp of PSUs to be front loaded. /2

#RBI #India #ratecut
On bond yields he felt the recent spike in yields was largely specific, external event driven. /3

#RBI #India #ratecut
Read 10 tweets
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Christophe Barraud🛢
@C_Barraud
🇺🇸 🇨🇳 *U.S. WAITING TO HEAR FROM #CHINA ON TRADE DEAL, KUDLOW SAYS - BBG
*KUDLOW EXPECTS U.S.-CHINA MEETING IN MARCH IN MAR-A-LAGO
*TRUMP, LIGHTHIZER ARE VERY CLOSE, KUDLOW TELLS CNBC
🇺🇸 🇨🇳 #CHINA WOULD HAVE TO NOTE ANY FX INTERVENTION UNDER DEAL: KUDLOW - BBG
🇺🇸 🇨🇳 *MNUCHIN SAYS #CHINA #TRADE TALKS INCLUDE 150-PAGE DOCUMENT - BBG
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Cryptocarti, MBA
@cryptocarti16
RECESSION THREAD
1/ a lot of you see me post often that a recession is coming. I believe q1/q2 2020 it will happen and I will explain why it will happen then. However don’t expect 2008 unless student debt breaks the govt books (lol)
2/ back in the day when most of you were in high school, recessions came from negative gdp growth. The US hasn’t seen neg gdp in how long? And there’s a reason the #Fed won’t raise rates
3/ we live in an economy financed by debt. They raise the rates too high there won’t be any lending, and the economy will just explode. They won’t allow that to happen. It will be a slow bleed
Read 12 tweets
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Christophe Barraud🛢
@C_Barraud
🇨🇳 #CHINA Q3 GDP Y/Y: 6.5% V 6.6%E (slowest growth since Q1 2009)
*NBS spokesman Mao Shengyong said that the international situation was bringing “downward pressure” on China.
*Link: bloom.bg/2RVX1ZA
🇫🇷 🇪🇺 🇨🇳 French tire maker Michelin warned of declining sales in Europe and #China in the second half of the year, dragging down shares of its competitors in the U.S. and Europe - Bloomberg
*Statement: bit.ly/2EujhqH
🇺🇸🇨🇳🇪🇺 In a volley of filings, the EU, #China and the U.S. this week escalated disputes over new U.S. metals tariffs, the European response to those levies, and Chinese intellectual property practices - Bloomberg
bloomberg.com/news/articles/…
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Trending hashtags

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