GoFuckYourself.com - Adult Webmaster Forum - View Single Post - Dow falls 400 points amid worst start to December since 1980

VRPdommy · 12-25-2018, 01:01 PM

Well, yet one more slide the day before xmas.
While I don't think you should read a bunch into that because there is not a lot of volume with it.
Lack of buyers, not a shit-load of sellers.

But more interesting was really spooking the market... the treasury sec talking about how the liquidity of the banks is OK and it probably more about how he went about that.
https://www.cnn.com/2018/12/24/inves...ity/index.html

In a normal economy, the tres sec regulates bank liquidity.
After the bank collapse, the fed gained new tools to make adjustments to liquidity to have a ultimate non-political ability to regulate the economy. Well, actually, they had them all along but they were revised.

It is my belief that the fed is going to start a 'reverse repo' program in 2019. And not just push base rates up next year very much at all. Don't forget those rates are still some of the lowest we have had in our lifetime. If we are doing so good, we don't have the need to prop-up the banks anymore with artificial low rates.

But all of this and Trump about to roll back some of the few regulations put in place after the bank fallout. Feel better about that ?

12-25-2018, 01:01 PM
VRPdommy Too lazy to set a custom title Industry Role: Join Date: Oct 2014 Posts: 10,969	Well, yet one more slide the day before xmas. While I don't think you should read a bunch into that because there is not a lot of volume with it. Lack of buyers, not a shit-load of sellers. But more interesting was really spooking the market... the treasury sec talking about how the liquidity of the banks is OK and it probably more about how he went about that. https://www.cnn.com/2018/12/24/inves...ity/index.html In a normal economy, the tres sec regulates bank liquidity. After the bank collapse, the fed gained new tools to make adjustments to liquidity to have a ultimate non-political ability to regulate the economy. Well, actually, they had them all along but they were revised. It is my belief that the fed is going to start a 'reverse repo' program in 2019. And not just push base rates up next year very much at all. Don't forget those rates are still some of the lowest we have had in our lifetime. If we are doing so good, we don't have the need to prop-up the banks anymore with artificial low rates. But all of this and Trump about to roll back some of the few regulations put in place after the bank fallout. Feel better about that ?