Liquidity Crisis: The Bond Market Has Frozen

[Natural Citizen]

Should I withdraw my money from the bank?

Companies are starting to go to the banks and draw from their revolving credit. Derivatives are rearing their heads. Echoes of Lehman. Ak ak, eek eek, tookie tookie.

Banking Crisis Imminent? Companies Scramble To Draw Down Revolvers

This is the probably the most important news right now and nobody in mainstream cable news entertainment is reporting on it. Heh heh.

One way to bring about a liquidity crisis is for all of these companies to run to the banks and draw on their revolving credit.

Oh, and don't forget about all of those trilllions of dollars missing from the government at the very same time there is a liquidity crisis. Remember back in 08 when all of those banks wanted the bailouts but they were keen on telling the government that they didn't want them knowing what they were gonna do with the money...as if someone were holding a gun to their heads...like a kidnapper demanding ransom? Well, that's relevant here, dammit.

 

[The Original Tree]

Bond market breakdown sees historic spread between buyers and sellers

“I’ve been doing this 40 years. I’ve never seen that before,” Michele told CNBC’s Steve Liesman, who inquired about half-point difference in what buyers were willing to pay and sellers were willing to sell for, referred to as the bid-ask spread.

In fact, Michele said that at one point he received a call from JP Morgan Asset Management’s London office to say that there were no offers on the 30-year bond.

“I’ve never seen that before,” he said. “These are uncharted times for sure.”

Should I withdraw my money from the bank?

Yes, Do that. Stuff it in your mattress, and then don't leave the house, not even to vote. You will die.

 

[CrusaderFrank]

Bond market breakdown sees historic spread between buyers and sellers

“I’ve been doing this 40 years. I’ve never seen that before,” Michele told CNBC’s Steve Liesman, who inquired about half-point difference in what buyers were willing to pay and sellers were willing to sell for, referred to as the bid-ask spread.

In fact, Michele said that at one point he received a call from JP Morgan Asset Management’s London office to say that there were no offers on the 30-year bond.

“I’ve never seen that before,” he said. “These are uncharted times for sure.”

We need more government spending!

 

[Natural Citizen]

The Fed's announcement does not look like it is holding.

It did blow up the bubble some more, though. Heh heh. That's just brilliant.

 

[OldLady]

And the Fed is not the reason for it.

You are in dire need of reeducation, my friend. Dire need.

People have been sounding warnings of the inevitable for years. And they got laughed at. These bubbles were patently predictable by anyone with even a rudimentary understanding of economics and monetary policy. Well...here we are. Take your medicine. You got in that bed. So sleep in it.

*cough*

The Fed's Bond Bubble Doomsday Machine

There would be no bond bubble if there was no government overspending. That's basic, and it is a shame you don't get that.

You still have not answered my question. How would you put the fire out right now?

No, I get that spending is a problem. But the Fed is not the answer.

Again, what would you do?

Sounds to me like he means to pop it.

 

[g5000]

And the Fed is not the reason for it.

You are in dire need of reeducation, my friend. Dire need.

People have been sounding warnings of the inevitable for years. And they got laughed at. These bubbles were patently predictable by anyone with even a rudimentary understanding of economics and monetary policy. Well...here we are. Take your medicine. You got in that bed. So sleep in it.

*cough*

The Fed's Bond Bubble Doomsday Machine

There would be no bond bubble if there was no government overspending. That's basic, and it is a shame you don't get that.

You still have not answered my question. How would you put the fire out right now?

No, I get that spending is a problem. But the Fed is not the answer.

Again, what would you do?

Sounds to me like he means to pop it.
View attachment 312023

Sounds to me like Natural Citizen would let the world fall off a cliff. But that would be the end of capitalism.

 

[Natural Citizen]

Sounds to me like Natural Citizen would let the world fall off a cliff. But that would be the end of capitalism.

Free-markets and the cause of liberty is how you get to the top of the mountain.

What you're promoting is as far from both as you can get. Your way is sending it all crashing to the bottom. Somebody's gotta say it like it is. So I do. Stings, don't it?

So you might wanna get your ears checked. You're too concerned with your own personal interests. You don't give a damn about America. And you're willing to blow that bubble up as big as it'll go in order to meet your own short-term interests. So stop equating your personal interests with the well-being of America. They're not even compatible.

Your interests are what is destroying the dollar. Your interests are why people have no purchasing power. Your interests are why people's savings are robbed of their value. You're betting on the thief so long as he gives you some of his haul.

 

[g5000]

Sounds to me like Natural Citizen would let the world fall off a cliff. But that would be the end of capitalism.

Free-markets and the cause of liberty is how you get to the top of the mountain.

What you're promoting is as far from both as you can get. Your way is sending it all crashing to the bottom. Somebody's gotta say it like it is. So I do. Stings, don't it?

So you might wanna get your ears checked. You're too concerned with your own personal interests. You donlt give a damn about America. And you're willing to blow that bubble up as big as it'll go in order to meet your own interests. So stop equating your personal interests with the well-being of America. They're not even compatible.

Your interests are what is destroying the dollar. Your interests are why people have no purchasing power. Your interests are why people's savings are robbed of their value. You;re betting on the thief so long as he gives you some of his haul.

I see you are not denying that you would let it all come crashing down.

And that would be the end of capitalism.

 

[OldLady]

You are in dire need of reeducation, my friend. Dire need.

People have been sounding warnings of the inevitable for years. And they got laughed at. These bubbles were patently predictable by anyone with even a rudimentary understanding of economics and monetary policy. Well...here we are. Take your medicine. You got in that bed. So sleep in it.

*cough*

The Fed's Bond Bubble Doomsday Machine

There would be no bond bubble if there was no government overspending. That's basic, and it is a shame you don't get that.

You still have not answered my question. How would you put the fire out right now?

No, I get that spending is a problem. But the Fed is not the answer.

Again, what would you do?

Sounds to me like he means to pop it.
View attachment 312023

Sounds to me like Natural Citizen would let the world fall off a cliff. But that would be the end of capitalism.

Natural Citizen would let the world fall off a cliff.
Yeah, well I believe he's a libertarian. You know how they are.

 

[OldLady]

Sounds to me like Natural Citizen would let the world fall off a cliff. But that would be the end of capitalism.

Free-markets and the cause of liberty is how you get to the top of the mountain.

What you're promoting is as far from both as you can get. Your way is sending it all crashing to the bottom. Somebody's gotta say it like it is. So I do. Stings, don't it?

So you might wanna get your ears checked. You're too concerned with your own personal interests. You donlt give a damn about America. And you're willing to blow that bubble up as big as it'll go in order to meet your own interests. So stop equating your personal interests with the well-being of America. They're not even compatible.

Your interests are what is destroying the dollar. Your interests are why people have no purchasing power. Your interests are why people's savings are robbed of their value. You;re betting on the thief so long as he gives you some of his haul.

I see you are not denying that you would let it all come crashing down.

And that would be the end of capitalism.

What is the Fed "funding" that seems to be saving the day here? Are they buying bonds like you suggested?

 

[Natural Citizen]

I see you are not denying that you would let it all come crashing down.

And that would be the end of capitalism.

We don't have free-market capitalism. We're Keynesians. You have a belief in deficit finance. You have a believe in central economic planning by a central bank. You have a belief in inflationism. You have a belief in a centrally planned economy.

That's so far removed from free-market capitalism that it's laughable to refer to it as such.

By default that system will always come crashing down, just as it always has. The natural market itself is the ultimate the decider. Not the government. Not central banks.

 

[Natural Citizen]

Natural Citizen would let the world fall off a cliff.
Yeah, well I believe he's a libertarian. You know how they are.

I'm correct. That's what I am.

What you people are promoting is what is guiding the country off a cliff. And you're promoting more of it? Are you nuts?

Are you people not even paying attention to what is happening? There's a reason for it. Do we have to draw pictures or what?

 

[g5000]

I see you are not denying that you would let it all come crashing down.

And that would be the end of capitalism.

We don't have free-market capitalism. We're Keynesians. You have a belief in deficit finance. You have a believe in central economic planning by a central bank. You have a belief in inflationism. You have a belief in a centrally planned economy.

You know jack shit about what I believe in. No one, and I mean no one, on this forum has been railing against deficit spending more than I.

And I have also been calling the pseudocons on this forum uber-Keynesians for their hypocritical support of Trump's trillion dollar deficits.

Pull your head out of your ass.

 

[Natural Citizen]

You know jack shit about what I believe in.

.

I beg to differ. You're sitting here egging it on as far as I can tell. Aren't you the one rejoicing when the Fed stepped in again a while ago? To no avail, of course. All that accomplished was to blow up the bubble bigger.

Btw, the day just ended with the largest drop we've seen since 1987.

That's your model at work. Sleep in it.

 

[buttercup]

Everyone needs to read the book The Creature from Jekyll Island: A Second Look at the Federal Reserve by G. Edward Griffin.

That is all.

 

[Natural Citizen]

Everyone needs to read the book The Creature from Jekyll Island: A Second Look at the Federal Reserve by G. Edward Griffin.

That is all.

I would also add Ron Paul's "End The Fed'' to the reading list.

You know....they guy who predicted the 08 crash in 2003...the same guy the know-it-alls whose monetary policy is crashing once again (even though what we're seeing is really just an extention of that crash) called crazy? Heh heh.

 

[DOTR]

Bond market breakdown sees historic spread between buyers and sellers

“I’ve been doing this 40 years. I’ve never seen that before,” Michele told CNBC’s Steve Liesman, who inquired about half-point difference in what buyers were willing to pay and sellers were willing to sell for, referred to as the bid-ask spread.

In fact, Michele said that at one point he received a call from JP Morgan Asset Management’s London office to say that there were no offers on the 30-year bond.

“I’ve never seen that before,” he said. “These are uncharted times for sure.”

Should I withdraw my money from the bank?

Watch for Iranian missiles on your way to get it.

 

[DOTR]

BOOM!

Stocks cut losses dramatically after giant market intervention by Fed, Dow was down 9.5%

The Fed announced it will ramp up its overnight funding operations to more than $500 billion.


.

QE forever! Yay.

 

[Toro]

And the Fed is not the reason for it.

You are in dire need of reeducation, my friend. Dire need.

People have been sounding warnings of the inevitable for years. And they got laughed at. These bubbles were patently predictable by anyone with even a rudimentary understanding of economics and monetary policy. Well...here we are. Take your medicine. You got in that bed. So sleep in it.

The Fed contributing to high equity valuations - which they did - isn’t the reason for this.

Even if the Fed had done zero QE, this would have happened anyways. This is a demand shock.

 

[Natural Citizen]

The Fed contributing to high equity valuations - which they did - isn’t the reason for this.

Even if the Fed had done zero QE, this would have happened anyways. This is a demand shock.

Of course, it was going to happen anyway.

America needs to get back to free-markets and sound money. It's the only path to peace and prosperity. I dunno why for the life of me that people hate free-markets and sound money so much.