Banks miss Q1 earnings because they are setting aside Billions for loan defaults. Market way up.

[Crazyhole]

I have wealth guard on my accounts and it went into effect last week. I initially had a lot of mixed feelings about taking the hit instead of waiting it out. But now that it's happened, I'm feeling better and better about it. Things are going to get worse before they get better.

Good call.
Yes, they are going to get worse. Now with the FED trying to step in it's going to get way worse. Do you remember brianpnoonan and me ringing the warning bells 10 years ago? This is a long time coming, it was just a matter of what the trigger would be that would bring the collapse.

 

[DaShuckster]

Do you remember brianpnoonan and me ringing the warning bells 10 years ago?

Yes I do. Most of the time you're a blowhard, know-nothing, A-hole, but I've learned to pay attention when you start talking economics.

Good call.

Thanks. Your post made my day.

 

[KNIGHTTIME^]

The beauty in this it is another wealth transfer. Some sitting on the sidelines might end up making a fortune when it takes the sharp rebound.

 

[DaShuckster]

The beauty in this it is another wealth transfer. Some sitting on the sidelines might end up making a fortune when it takes the sharp rebound.

IMHO, jumping back in isn't about what the Fed is or isn't doing, it's about when the number of infections in the US starts trending down.

 

[KNIGHTTIME^]

IMHO, jumping back in isn't about what the Fed is or isn't doing, it's about when the number of infections in the US starts trending down.

June this will be a non event.

 

[fried-chicken]

June this will be a non event.

You are basing this on absolutely nothing and you keep dangerously repeating it as fact.

 

[KNIGHTTIME^]

You are basing this on absolutely nothing and you keep dangerously repeating it as fact.

Your correct. There have been plenty of times these expand, peak, and disappear. Might be different, sure. They are starting to test a vaccine this week.

 

[Crazyhole]

Yes I do. Most of the time you're a blowhard, know-nothing, A-hole, but I've learned to pay attention when you start talking economics.
Thanks. Your post made my day.

WTF? Because I disagree with you on certain subjects makes me an a-hole?

 

[fried-chicken]

Bump. This shit is nutty. Not sure where the bottom is. Maybe 14k?

 

[DaShuckster]

WTF? Because I disagree with you on certain subjects makes me an a-hole?

It's how you choose to disagree at times that makes you an a-hole. But before you go and get all sensitive, we're all a-holes here.

 

[KNIGHTTIME^]

Bump. This shit is nutty. Not sure where the bottom is. Maybe 14k?

Perfect. If can hang around those levels in July will be good timing for me.

 

[fried-chicken]

Perfect. If can hang around those levels in July will be good timing for me.

At this point it's low class to be all

about the virus and stock market. People are legitmatly ****ed over pretty hard. You should show empathy more often and keep your celebrations internal.

That said,

Spoiler

 

[Crazyhole]

Bump. This shit is nutty. Not sure where the bottom is. Maybe 14k?

Probably not that low. It would take 3 or 4 deflationary quarters on a global basis to get there, not just the US and EU financial sector. The bank of China and Japan's central bank have backstops that we dont have and they have 3.5 trillion combined in US cash reserves that they'll turn around and reinvest in the global market when it gets down to the 17k range. Deutsche bank is probably fvcked, but they really have been for a while. We'll see a massive influx of foreign investment into Citi, UsBank, and Chase that will stabilize the market but it will completely screw the CBOE and consumer markets.

 

[Ucfmikes]

They are starting to test a vaccine TODAY.

FIFY

 

[UCFKnight85]

Good call.
Yes, they are going to get worse. Now with the FED trying to step in it's going to get way worse. Do you remember brianpnoonan and me ringing the warning bells 10 years ago? This is a long time coming, it was just a matter of what the trigger would be that would bring the collapse.

You guys saw a new virus coming out of China and creating a pandemic while wrecking economies 10 years ago?

 

[Crazyhole]

You guys saw a new virus coming out of China and creating a pandemic while wrecking economies 10 years ago?

We saw how much debt driven money was being pumped into the market. It was obvious back then that it was only a matter of time before a triggering event would lead to a collapse and the only thing left would be the increased public debt.

 

[UCFKnight85]

We saw how much debt driven money was being pumped into the market. It was obvious back then that it was only a matter of time before a triggering event would lead to a collapse and the only thing left would be the increased public debt.

But this isn't a financial collapse, it's a demand collapse.

 

[Crazyhole]

But this isn't a financial collapse, it's a demand collapse.

Not really. It's the financial sector that is collapsing. The travel industry is taking a hit but it's the investment banks that are driving this down.

 

[fried-chicken]

But this isn't a financial collapse, it's a demand collapse.

You're nuts. The virus is causing a financial collapse.

 

[UCFKnight85]

You're nuts. The virus is causing a financial collapse.

It may. It hasn't yet, our banks are still liquid. They didn't go through stress testing for nothing. The smaller lenders are the ones who need help right now.

My point remains, the economy didn't dive into recession because financial markets cratered; it was due to a sudden, mass, worldwide plunge in demand for pretty much everything aside from toilet paper and groceries.

 

[Crazyhole]

It may. It hasn't yet, our banks are still liquid. They didn't go through stress testing for nothing. The smaller lenders are the ones who need help right now.

My point remains, the economy didn't dive into recession because financial markets cratered; it was due to a sudden, mass, worldwide plunge in demand for pretty much everything aside from toilet paper and groceries.

The big banks are not liquid. That's why they just allocated 1 trillion dollars for troubled asset bailouts and 500 billion in discount window funding. They also dropped the reserve rate to zero. These are not things they do when banks are liquid. Theres talk about having a bank holiday already.

The house of cards is near collapse.

 

[UCFKnight85]

The big banks are not liquid. That's why they just allocated 1 trillion dollars for troubled asset bailouts and 500 billion in discount window funding. They also dropped the reserve rate to zero. These are not things they do when banks are liquid. Theres talk about having a bank holiday already.

The house of cards is near collapse.

This just isn't true. Not at all.

https://www.forbes.com/sites/antoin...nks-pass-their-coronavirus-test/#840560b1df23

Our largest banks have $3T in highly liquid assets under management. This is literally what they look at in these stress tests. The Fed move is to lend support and help middle to small lenders who may have liquidity issues.

If you want to point at big banks with liquidity problems, you would look at Europe.

 

[Crazyhole]

This just isn't true. Not at all.

https://www.forbes.com/sites/antoin...nks-pass-their-coronavirus-test/#840560b1df23

Our largest banks have $3T in highly liquid assets under management. This is literally what they look at in these stress tests. The Fed move is to lend support and help middle to small lenders who may have liquidity issues.

If you want to point at big banks with liquidity problems, you would look at Europe.

That makes no sense. If there is 3t in liquidity, there should be plenty of money available for overnight lending. If that were the case, why increase the discount window funding and drop the reserve ratio? Why another 1t in tarp funding? If things were as rosy as Forbes makes it out to be, there was no reason to take any measures whatsoever.

 

[UCFKnight85]

That makes no sense. If there is 3t in liquidity, there should be plenty of money available for overnight lending. If that were the case, why increase the discount window funding and drop the reserve ratio? Why another 1t in tarp funding? If things were as rosy as Forbes makes it out to be, there was no reason to take any measures whatsoever.

You'd have to ask the Fed. It's pretty well established though that our big banks are flush with liquidity since they've passed a series of stress tests over 10 years. Mohammad El Erian said the same this morning on CNBC.

 

[Crazyhole]

You'd have to ask the Fed. It's pretty well established though that our big banks are flush with liquidity since they've passed a series of stress tests over 10 years. Mohammad El Erian said the same this morning on CNBC.

You realize that "liquidity" includes foreign and domestic stock holdings right? Their liquidity, should they need it, means pulling another 10% out of the stock market in which they are already highly leveraged. The big banks can't provide overnight funds to commercial banks because that drops their holdings and if they did it would collapse the market. Like I said, it's a house of cards

 

[Crazyhole]

Light sweet crude is down 32% today. Wholesale price on gas is down to 1.22.

It's a pretty good time to own gas stations

 

[fried-chicken]

Light sweet crude is down 32% today. Wholesale price on gas is down to 1.22.

It's a pretty good time to own gas stations

What are you smoking?

Everyone is working from home with no where to go. No school busses, no work, no vacations, no restaurants. There is basically no demand for gas right now.

 

[NinjaKnight]

Light sweet crude is down 32% today. Wholesale price on gas is down to 1.22.

It's a pretty good time to own gas stations

Are you honestly inbred? I'll stop making fun of you if so. I used to think you were just an idiot, but you might have some actual developmental issues. No one with a normal IQ would say something remotely this idiotic, a good time to own gas stations when people are literally self isolating and this thing is just getting started here.

 

[UCFKnight85]

Light sweet crude is down 32% today. Wholesale price on gas is down to 1.22.

It's a pretty good time to own gas stations

Owning a gas station would be good if we didn't have a national health emergency forcing people not to go anywhere. I haven't driven my car outside of my neighborhood since Monday.

You kinda missed the mark there.

 

[Crazyhole]

What are you smoking?

Everyone is working from home with no where to go. No school busses, no work, no vacations, no restaurants. There is basically no demand for gas right now.

Another thing you have no expertise in. Bulk buyers can lock in prices for an extended period of time, and while the typical profit margin for retail gasoline is around 2 cents, they have the ability now to make up to 40 cents per gallon or more. Any bulk buyer can cash in on this, including fleets and farmers.

 

[fried-chicken]

Another thing you have no expertise in. Bulk buyers can lock in prices for an extended period of time, and while the typical profit margin for retail gasoline is around 2 cents, they have the ability now to make up to 40 cents per gallon or more. Any bulk buyer can cash in on this, including fleets and farmers.

Retail gas station owners don't deal in bulk contracts you goober.

 

[NinjaKnight]

Another thing you have no expertise in. Bulk buyers can lock in prices for an extended period of time, and while the typical profit margin for retail gasoline is around 2 cents, they have the ability now to make up to 40 cents per gallon or more. Any bulk buyer can cash in on this, including fleets and farmers.

And what happens when your competitor across the street, who locked in the same price as you, lowers their prices to a competitive level to try and grab a share of the greatly reduced number of people buying gas?

You might know even less about economics than you do about the curvature of the earth. Idiot doesn't even begin to describe you

 

[Crazyhole]

Retail gas station owners don't deal in bulk contracts you goober.

Lol, okie doke. Retail gas stations buy at bulk prices. You're showing your ass again

 

[Knight_Classes_begin_7pm]

You're nuts. The virus is causing a financial collapse.

...a demand collapse?? Demand for what, toilet paper? That's driving us into another financial crisis? LOL, There's a pandemic out there causing this....

 

[Knight_Classes_begin_7pm]

You are basing this on absolutely nothing and you keep dangerously repeating it as fact.

A major financial collapse and we'll be out of it in 2.5 months? Crack don't smoke itself.

 

[Knight_Classes_begin_7pm]

You're left with name calling because you've literally got nothing. I've owned you tonight.

If I were you, I'd STFU and not dig a deeper hole for yourself.

He's a typical red-hat

 

[NinjaKnight]

And now news is breaking that two different GOP Congress critters used their position and knowledge from congressional briefs to dump millions in their personally held stocks when briefed on COVID 19 before the markets crashed.

Why is it always Republicans doing this shit?

 

[firm_bizzle]

And now news is breaking that two different GOP Congress critters used their position and knowledge from congressional briefs to dump millions in their personally held stocks when briefed on COVID 19 before the markets crashed.

Why is it always Republicans doing this shit?

Resign and go to prison.

#lockthemup

 

[KNIGHTTIME^]

California is now on lockdown. I don't see the economy rebounding for a while. Get your cash ready for June/July though.

 

[DaShuckster]

California is now on lockdown. I don't see the economy rebounding for a while.

Has Mister "Overblown" finally woken up?