Loading ...Credit Crisis?
Does anyone else feel a Lehman type event right around the corner? With all the talk of bailouts and fiscal stimulus, I think a credit crisis is coming soon. Can the banks withstand the devastation coming to airlines, hotels, oil companies, casinos, restaurants, etc.?
The cynic in me says absolutely, at least the largest banks like the primary dealers. Just roll over REPOS in perpetuity and you will never be technically insolvent.
There definitely is something brewing…
I’ve been saying it over and over again. This is much, much, much worse than 2008. Why can’t people see that ?
i feel we are going down hard… copper is TANKING right now
The big difference is you can’t just drive consumption by flooding the market with excess liquidity, since it has no effect on the virus.
Now, that being said, if the US govt mailed me a check for say, $1 mill, I would rest a little easier and might think about doing some shopping.
$1 million paper promises to keep you from starving?
No, no promises, but I definitely would not just sit on the cash.
That’s what the GSR has been telling us
https://stockcharts.com/h-sc/ui?s=GLD%3ASLV&p=D&yr=1&mn=0&dy=0&id=p73669217330&listNum=43&a=727905026
It’s arguably been hinting at this eventuality for the last 4 years, as it continued to climb in the face of a supposedly booming economy.
The question I have is if this is worse than 2008 why are the values of GFC used as some kind of bottom? 08 was papered over price discovery was not allowed to happen therefore the charts aren’t accurate. How does anyone draw lines on charts that are manipulated and say this or that with certainty?
Prices post GFC are about to meet their day of reckoning IMO. Why is the FED wasting it’s resources now is the big question, I think deep down most here know the answer. Hopefully everyone is prepared on multiple levels.