I thought it would make for great discussion here on the XBC board.
"That didn't feel like a dead cat bounce
The FED gave the keys to the vault to the Wall St. boys on Wednesday to fix their debt problem. I know it looks like a covid-19 thing, but anyone paying attention knows what the $1.5 trillion is really about. Is it any surprise that the bankers pushed the market up 1300 points in the last half hour in support of Trump? Nope, no surprise.
Today, Canada announced some big committments of its own. While people will be talking about rate cuts and a pledgeof $10 billions of dollars, what is not being talked about is the $300 billion that Canada is injecting into the banks for the same reason the USA is injecting $1.5 trillion. That is not even the big news. The real news is that Canada is reducing the leverage requird by banks for lending from 2.25% to 1% of assets. That instantly gives the banks the biggest injection imaginable.
The banks have let the derivatives market get completely out of control and needed bailing out once again. The Covid-19 problem is real, but it is being used to disguise the real debt problem that was putting the entire financial system in peril.
I'm not a conspiracy guy at all. This is not a conspiracy, just a fact.
I don't know when the markets are going to take off, but the announcements of QE around the world are going to create an economic boom never seen before. The massive QE isn't going to simply push the Dow back in the right direction, it is going to drive the Dow up to 40,000 or 50,000 in the coming years if not sooner. That's what happens to the zoo when you hand the keys to the monkeys.
What we saw in the last 30 minutes of trading is just a glimpe of the future. The artificial suppression of interest rates for ten year to cover the QE from 2008 meant housing prices escalated beyond even the dreams of millenials. What we have seen in the last couple of days is going to make the QE from the financial crisis look like child's play.
I went all-in on the market on Wednesday and Thursday. By the close of the market today, I doubled my investment which is something I have never done before. The markets may chop about for a couple of weeks or maybe even a couple of months as margin calls wring out the last bit of wealth from retail invsestors but what we saw in the last half hour didn't feel like a dead cat bounce."