$586 Billion In Five Business Days: Fed’s Balance Sheet Balloons To $5.25 Trillion
The bear market for the Dow is over - technically.
You're likely to see any number of headlines to that effect. Hopefully, all of the accompanying stories will be dripping with sarcasm.
It's true that the Dow staged its biggest three-day advance (some 21%) since 1931 through Thursday, but no serious market observer would suggest we're no longer in trouble, let alone totally out of the woods. Indeed, the narrative right now is that US equities will almost surely revisit local lows before making
Covid-19 might move more slowly than the Fed buys stuff, or maybe not. But the virus will make no announcements regarding its timing of symptoms appearance in people, its pathway through the country, or its means of morphing into the next strain.
And here’s the truly scary thing: It’s not enough.
This will be interesting. Reflating the bubble without a pressure regulator, and a duct tape and bailing wire back-flow valve. Oil is still up in the air or sustained, and a re-balance on tap. The only consistency to be found is within a irrationality of the president. We could have gone to school on the virus before it went to school on us; advantage blown like DC and 2 trillion dollars.
Mercy!
Oh and a Record setting 5.0 earthquake in frac central Orla Permian Basin Tx where they flare without care in the nascent armpit on the range.
FYI: Japan & deflation
] Overall, Japan’s stimulus packages added up to over one hundred trillion yen, and yet they failed. According to these economic schools, that stimulus money actually perpetuated the problem it was intended to cure.