U.S. equity markets surged Monday as Wall Street rebounded from its worst week since the financial crisis and has President Trump and U.S. health officials made more progress in developing a plan to combat the coronavirus. The Dow Jones Industrial Average rose over 1,294 points or 5 percent in what is the biggest point gain […]
Dow Jones Fell More Than 3,500 Points in Its Worst Week Since 2008…Fed Under Pressure to Cut Rates Immediately…
Increasing fears over the spreading coronavirus have investors on edge, and while the White House maintains that the United States is prepared to handle an outbreak, the Federal Reserve has come under scrutiny as the market rapidly loses liquidity. The Dow Jones Industrial Average fell more than 3,500 points in its worst week since the […]
Don’t Lose It…
HERE’S THE LEAST surprising thing you’ll read this week: You can’t control the financial markets. They’re driven by news—and we simply don’t know what news we’ll get in the weeks and months ahead, whether it’s about the spread of the coronavirus, its impact on the global economy or something else entirely. But don’t despair: There’s […]
Dow Nosedives Nearly 1,200 in Biggest Single-Day Points Drop of All Time…
U.S. equity markets plunged into correction territory Thursday in what was another volatile session which followed President Trump’s announcement on Wednesday of a coronavirus task force. The Dow Jones Industrial Average fell over 1,193 points, its worst single point drop ever, as selling accelerated into the close of trading. The S&P 500 and Nasdaq Composite […]
The Fed’s Repo Bailout and JPMorgan’s 38 Trading Floors…
Since September 17 of this year, the central bank of the United States, the Federal Reserve, has been pumping hundreds of billions of dollars each week to unnamed trading firms on Wall Street. We know the loans are going to trading firms because the loans are being made to the 24 primary dealers (see list […]
The Fed’s Wall Street Bailout May Go into Overdrive in December…
The Fed is in deep fear, while also in deep denial, about what happened last December. Its fear is that it could happen again this December. Its denial is that its lax supervision of the Wall Street mega banks is largely responsible for the mess. The stock market news on December 24 of last year […]
As the Fed Throws Hundreds of Billions a Week at Wall Street Banks for Liquidity, JPMorgan’s IIF Can Afford to Buy El Paso Electric…
David Dayen of American Prospect has a must-read article. The headline and subhead read: “JPMorgan Gets Back Into the Electricity Business: An El Paso, Texas, electric utility is being purchased by an investment fund with deep, undisclosed ties to the big bank.” Dayen is not buying into the idea that it’s an investment fund at […]
“It’s Incredible. The Scale of What JPMorgan Is Doing Is Mind-Boggling”…
Shortly after our latest discussion how JPM’s drain of liquidity via Money Markets and reserves parked at the Fed may have prompted the September repo crisis and subsequent launch of “Not QE” by the Fed in order to reduce its at risk capital and potentially lower its G-SIB charge – currently the highest of all […]
New York Fed’s Repo Loans Are Foaming the Hedge Fund Runways…
There is growing evidence that the New York Fed, the Wall Street feeding tube team of the Federal Reserve Board of Governors, is using its massive new repo loan operations to securities firms (primary dealers) to foam the Wall Street runways to try to avoid a crash landing as money gushes out of hedge funds […]