Liquidity Crisis
dcarr
Posts: 8,422 ✭✭✭✭✭
It looks like all classes of assets are being dumped.
This has the feel of a liquidity crises where anything and everything is being sold to raise cash.
I think the Fed has screwed up again.
Much more QE to come.
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Comments
Yup.
I knew it would happen.
More money creation will fix it.
Not.
I knew it would happen.
Fix what?
Knowledge is the enemy of fear
LOL: Lack of Liquidity.
Not sure what you mean; or are asking?
Are you implying nothing is broken or wrong? Or, are you implying that.... it can't be fixed? Regardless, things seem to be boomin' in the wrong direction today.
not a liquidity crisis. Herd mentality. The music is slowing down, everyone wants to have a chair. When "cash is the place to be" appears on the economic billboard, no one wants to be the last looking for a chair.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
"SPLUNGE!"
Er....no. This is nothing compared to March 2020 or September 2008.
Some of you need to expand your comments to include stuff beyond a month ago.
cool, they just got a whole bunch of fresh ink to boot (not)
So, you didn't heed the warnings in Jan. 2020 or in July 2008?
Comment Expansion: We are seeing the beginnings of 2008-09. Japan is the straw.
"Now this is not the end. It is not even the beginning of the end. But it is, perhaps, the end of the beginning." - Churchill
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
Everything that can break appears to be breaking. We should know soon where the cash is headed. Likely, as history shows, to gold first.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
not a liquidity crisis at all
There was no "warning" in January 2020 or July 2008 except with perfect hindsight. I could say the same thing for every month before those going back 6-18 months.
If you know the "warnings"...then tell us how low the S&P 500, Treasury Yields, and Gold all go...tell us the bottom price targets...tell us when we buy back in.
If what you say is correct and right, then it should be able to make you/us money.
Let's see it.
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That is ridiculously false.
There were all sorts of warning signs leading up to 2008.
I didn't even follow the markets at the time but I could still easily see the looming problem when those commercials came on TV offering people loans amounting to 125% of the equity in their houses.
Here are some Peter Schiff interviews from 2006-2007 (appended into a single video) where he sounds the alarm. His counter-party in one video debate (Mike Norman) laughs it off like the moron he is.
Are you Art Laffer or Mike Norman ?
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It appears there was some increase with insider trading taking place this time around: "From Nvidia CEO To Warren Buffett: Insider Stock Selling Was An Ominous Warning Ahead Of Market Swoon".
https://zerohedge.com/markets/nvidia-ceo-warren-buffett-insider-stock-selling-was-ominous-warning-ahead-market-swoon
From the zerohedge article "Huang has personally sold about $1.4 billion in shares since the start of 2020, including this summer's sales." They fail to mention that he still owns more than $8 billion in NVDA stock. NVDA insider selling is a non-story that continues to be pushed by the media.
dumping 12.5% of one's insider holdings is news worthy.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
Not if it's over a 4 year period
He also continues to get most of his compensation via stock options. He is not bailing out because the company is about to fail.
Couple of comments..... if one is going to dump, perhaps better to do so in stages over time so as to not tank the price. (If you had a 'hoard' of a rather rare and desirable coin, are you going to dump them all in the market at one time?)
The other mentioned in the article was Warren Buffett... disposing of Apple shares. Not sure what percentage this amounts to. I do remember a week or so ago when I heard/read Buffett was doing so... and thinkig hmmmm... wonder if something is coming down the road real soon. What does he know? He is a buy and hold guy.
That being said, I do not know whether this insider trading means anything or not, or if there are quite a few other significant ones that have not been mentioned. Just posted the info for comments.
Not trying to say in any way the company is failing. Rather, perhaps anticipating a correction, capturing that profit when at a high.?
If that was the case, yesterday was a bad timing on his part. BTW the market needed a correction, but I'm not convinced that yesterday's sell off took care of it.
Uncertainty about the election, uncertainty about war in Eastern Europe and the Middle East, soft jobs report, unemployment creeping up, auto repos up, real estate market slowing, etc.
I think this is more than just a typical market correction.
He's got more than $8 BB in NVDA stock. More like $80 BB (it split 10-for-1).
In case you don't know, his $80B in stock after a 10-for-1 split has the same dollar value as the original $8B in stock. Simply a split to reduce the share price not the value of shares held.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
Haung sales not significant, and I am short NVDA. There are some crowded trades and that doesn't bode well in the weakest two months. Best bet here is utility stocks.
Lol.
Huang owns about 3 to 3.5% of NVDA stock, or approx $80-$90 billion at current (volatile) prices. He has stated he set up a systematic plan to sell shares which is evidenced by publicly available reports.
Knowledge is the enemy of fear
What does Nvidia really have to do with this precious metal's forum?
My US Mint Commemorative Medal Set
No.....I'm talking about him having $80 BB in stock BEFORE (or after) the split. I've known a stock split doesn't affect holdings since I was in elementary school.
Nothing really...someone included it as an example of the financial turbulence the last few days.
In fact, it means nothing as these sales of stock by insiders are highly regulated and planned months/years in advance. They are called 10(b)5-1 plans, if anybody cares.
Back to gold and PM's....gold doing much better and closer to it's ATH than silver and BTC.
Gold is back to $2,400 and although silver is way behind lately, even JP Morgan is thinking $36 by 2025. I still buy the dips.
My US Mint Commemorative Medal Set
We hit $2,520 on the futures contract last Friday.
Yawn. RGDS!
EDIT:
P.S.: Do U expect the gutter to save you? THKS!
Markets have already recovered for the most part, on expectations the Fed will step in and do whatever QE and liquidity injections are necessary to float their members. As time goes by, more and more of these actions will be required to stave off collapse. It can continue almost indefinitely, but at the cost of continued and excessive inflation and stagflation. The new word that will start creeping into discussions is "quadrillion".
PS:
I expect that you will continue to obsess over, and languish in, the gutter.
The only thing that is really ever going to "save" us from ourselves is aliens or robots. Or maybe robot aliens. Robots will need and want copper, silver, etc. The question is, will they pay for it, or just take it by force ?
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Knowledge is the enemy of fear
Knowledge is the enemy of fear
" The new word that will start creeping into discussions is "quadrillion". "
Yep, I suspect that will be coming really soon; and ignored. And the experts will again tell us not a problem.... it's just money we owe to ourselves! All is good (right?!)
Not sure about the timeline on the outer space aliens though. Nanu Nanu!
(hmmmm..... will the aliens bring some currency with them? Can't wait to collect it!)
Those pics are from my family photo album. Top is my great-great grandfather. It's a painting since they didn't have cameras back then. Middle one is Mom...she's so precious. Love her so much!! And bottom is my cousin Harry. He lives in Colorado.
Knowledge is the enemy of fear
They will come to serve man. It's all in the book they present to us.
It's cookbook ! It's a cookbook!
Yes. Will be co-mingled with the rest of the monopoly money.
The US central bank has not owned gold since 1934
Yet all other central banks are filling their coffers. What's up wid dat?
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
There is a very interesting interview by Jay Martin with Andy Schectman and Shawn Khunkhun (weird name) about where this liquidity crisis is taking us:
I knew it would happen.
Rafi Farber also has some good analysis and observations about the problem as well.
I knew it would happen.
Some of us don't need others to tell us how and what to think.
I know that's a novel concept, but us redneck hillbillies are known for our ingenuity.
Still wondering how you are going to survive the consequences of events you fear.
Knowledge is the enemy of fear
Some of us don't need others to tell us how and what to think.
And yet, coho you are lockstep inline with whatever the Fed tells you. Don't bite the hand that feeds you, right?
I suggest that You not watch these interviews. Out of curiosity, do you own any physical gold? If so, why?
I knew it would happen.
Some of us don't need others to t> @jmski52 said:
Lol...I've often been critical of the FEDs zero rate policy and support of Congressional folly. Where you been?
Yeah, I own physical gold. Same reason I own equities, bonds, real estate and derivatives.
Still wondering how you are going to survive the consequences of events you fear.
Knowledge is the enemy of fear
plenty of inverse ETFs out there of all flavors to cover the coming equity dump. Easy peasy way to short different asset types. Saw my UVXY almost double in just five days last week before it settled back when the market recovered. My formula of taking half the profits on rapid spikes worked out well, it ended up increasing my stack of shares.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
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I have done well in the past by acting in contrarian fashion to what financial advisors and money managers (such as yourself) say to do.
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I have all of the basic essentials and more. I'll survive the consequences of the Fed's mismanagement & market manipulations better than most. Thanks for your concern.
I knew it would happen.