KALTBAUM RANDOM FINANCIALS NOTES
Credit Suisse has a real market cap (the real world) of $5 billion but gets a $54 billion loan from their central bank. A company that should be out of business because of debt just got 10x their market cap IN MORE DEBT! Such a financial system!
Yellen is telling the senate banking committee today that the banking system is sound and deposits are safe at the same time banks are going under and the fed bails out every depositor in this country. Hope she can keep a straight face with this utter bs. And to be clear, when you back stop every deposit at every bank…IT IS A BAIL OUT. They are now in hope and prayer mode the runs stop. Remember, she is one of the 3 central bankers that caused all this. If things are sound, why the bail out and why are we hearing they are about to print $2 trillion more to back stop?
First Republic (FRC)…everything was alright when it popped up to $50 on Tuesday morning. It is down $9 this morning back down to $21 and change. As we have stated…DO NOT GET CUTE WITH THESE MOVES. Other REGIONALS down early.
THERE IS A NARROW LIST OF BIG CAP TECH GETTING THE MONEY FLOWS. We are open to all outcomes but this really reminds us of parking as so many areas have been crushed. META up more this morning with a rhyme and reason. Looks like US is going after the major competitor in Tik Tok. That does matter. When the big money is scared, it flows to the largest for liquidity purposes. We must also add the plunge in rates of help.
CRB INDEX at yearly lows. The economy.
OIL PRICES at yearly lows. The economy.
YIELDS along the curve have tanked. The economy.
It would be another mistake if Powell raised rates next go round. Would just tell us he remains blind. Would love to say it doesn’t matter what he does but right now, it will matter. He is way behind the market again…the real market.This would not be a good time for what he is famous for, another misstep. As we stated, the free market is again way ahead of him. He is again behind the free market…just the other way. If he raises rates with yields tanking, he would again not be listening to the markets. If he lowers rates, he would just again be playing catch-up. He was way behind when rates kept spiking because of the inflation he caused and had to play catch up by raising rates. Now, rates are tanking and they are way behind on the upside. They are at 4.5-4.75% while the 10 year is 3.421% as we write this. Continued gargantuan ineptitude and blindness by the most powerful person on earth. Still trying to figure out how he got there and how he had the ability to distort free markets so much…causing all this.
Remember, we warned you about all of Powell’s distortions way in advance and that those distortions would come back to bite everything. The free markets finally took over, unwinding all of his distortions. The free markets are now giving all his playing God with markets the big middle finger, only we are the victims.