Already have an account? log in
This article is FREE for you
Create a free account and join institutional investors, analysts and strategists from the world's largest banks
By submitting your email address you agree to receive communication by email
‘The Currency And Bond Market Can Collapse’: Powell Exit Fears Spread
Late last week, I said big banks need to begin pondering the consequences and fallout from a (for no
OR, subscribe now for unlimited access
By submitting your email address you agree to receive communication by email
By submitting your email address you agree to receive communication by email
The fact that we are even having this discussion shows how far through the looking glass we are. Just complete and utter insanity (stupidity?) across the board.
As far as trades go, bet it all on long duration bonds a couple days after the initial shock. As you’ve said, if the dollar and long bonds completely unwind, we’re prettty much all screwed anyway, right? Might as well bet big on a rebound or just go down with the ship.
Just wait for Trump to tell us to get back into TLT on TruthSocial.
That cat might bounce, but it would be in no shape to meow. Need a better USD hedge.
Given the level of greed and BTD addicted retailers (and others), I’m not sure any shock would last more than a day or two. It should cause a major reaction across the board, but many ppl are so small-minded and pampered…The almost unfathomable level of denial about trump’s autocratic behavior and the ignorance of many blinded by greed causes me to wonder whether there’ll be a delayed blow-up, ala Bear Stearns. But, if the swap lines go belly-up, game over; re-set stock indices to much lower levels.
If CPI on Tuesday doesn’t come in hot, whoever replaces Powell will probably lower rates by 25 to 50 bps. So it will quickly become another BTFD for large cap tech American equities.
Trump desperately needs a distraction from the Epstein story. He’ll be doing something to make fireworks this week, the reality show always has to top last week’s show.
“We want the bureaucrats to be traumatically affected. When they wake up in the morning, we want them to not want to go to work because they are increasingly viewed as the villains. We want to put them in trauma.“ Telephone Tough Guy Russ Vought 2023