What's the black swan event the Federal Reserve sees that we don't?

Obviously the Federal Reserve is acting fast to prevent a black swan event.

Federal Reserve Stealth Intervention (not so stealth)

Unless you think the biggest repurchase (repo) efforts ever — surpassing the 2008 financial-crisis actions — are hyperbole:

Something’s off. See, it all started as a temporary fix in September when, suddenly, the overnight target rate jumped sky high and the Fed had to intervene to keep the wheels from coming off. Short-term liquidity issues, the Fed said. Those have become rather permanent:

And liquidity injections are massive and accelerating. On Tuesday, the Fed injected $99.9 billion in temporary liquidity into the financial system and $7.5 billion in permanent reserves as part of a program to buy $60 billion a month in Treasury bills. The $99.9 billion comes from $64.9 billion in overnight repurchase agreements and $35 billion in repo operations.

But market demand for overnight repo operations has far exceeded even the $75 billion the Fed has allocated, suggesting a lot more liquidity demand. Hence, on Wednesday the Fed suddenly announced a $45 billion increase on top of the $75 billion repo facility for a daily total of $120 billion. Here’s the Federal Reserve Bank of New York, the branch involved in such actions:

“Funding issues,” Chairman Powell called it in October. The Fed was totally caught off guard when the overnight financing rate suddenly jumped to over 5%, and it’s been reacting ever since.

Did you note the accelerated pace of Fed actions here? The Fed went from pausing rate increases to ending the balance sheet roll-off to multiple rate cuts and, finally, aggressive daily repos and balance-sheet expansion. All of this since July. And guess what? Another rate cut is coming next week.

I took the most important part of the articles out but I would go read for full context.

We went from greatest economy ever to the Fed acting fast and doing everything the Fed does to bring an economy out of recession. Something is happening right now and nobody at the Fed is talking about it.



Something is happening.

I am shorting XLF and I have deep OTM put options on some of the major ETFs. I hope you have your money in cash/bonds.

a reply to: toysforadults

Could this be related?
Lot of ceo's resigning.
www.resignation.info...

a reply to: scraedtosleep

I don't know because I would need to correlate it by checking it against the average or trend.

I think this is why we had a big kick in Bitcoins.
A lot were shorting it and had to go in on the buy back.

a reply to: UKWO1Phot

What happened I don't trade crypto's?

a reply to: toysforadults

Step 1: They create money out of thin air, it's taxed, they make more money.
Step 2: Go back to step 1

a reply to: toysforadults
We got a 30% increase kick over the last 24hrs. Leveled out a bit now. The news was the Chinese were going to accept crypto but I think it was the short sellers from the US investments.

a reply to: UKWO1Phot

Hmmmm

people tend to run to BTC when instability hits the market in foreign currency. American investors tend to run to cash when something hits the US markets. You would see a huge increase in value for the dollar as investors move out of the stock market and into the dollar.

Doom porn!

a reply to: Bluntone22

more like common sense market analysis

a reply to: toysforadults

Everything can be faked as long as the food supply is stable. This winter will upset the apple cart, the only true security is a bit of land out of a city. World food supplies are under pressure how it all going to work with a "Just in time supply system" The Grand solar minimum is the Black Swan, even the share market is effected by these cycles.

a reply to: anonentity

Not to mention uranus Taurus transit

Better buckle your seat belt # is about to start getting really crazy in 2020

originally posted by: toysforadults
a reply to: Bluntone22

more like common sense market analysis

How many of your other financial doom porn prediction threads have came through?

This could be a sign of health, in regional markets.

If a lot of loan requests are coming in, that all qualify, even under strict terms...

That's healthy, not a disaster.

It's the only reason I could think of, for spur of the moment solvency concerns that would trigger this action, without public statements.

I like the idea of crypto currency if done right... BUT... Aren't those quantum computers when they become powerful enough able to crack through encryption quite fast and therefore wont the cryptocurrencies all over basically be vulnerable unless they have quantum security algorithms built in?

a reply to: DaRAGE

Yes, what you say is true.

And crypto's, as they exist currently, may already be obsolete, considering that Google claims to have achieved 'quantum supremacy', recently cracking a previously 10,000 year encryption problem in a number of minutes. What this means: blockchain is no longer secure.

It sucks particularly that it was Google who did this, as it seems they already have a near monopoly on web searches, and they try to control content and speech to suit their own agendas.

They can generate their own coins but they can't change anything in the blockchain.

originally posted by: Bluntone22

originally posted by: toysforadults
a reply to: Bluntone22

more like common sense market analysis

How many of your other financial doom porn prediction threads have came through?

I'm going to rub this in your face in a few months.

Anyone hear about XRP? If not you probably will soon

All this cryptocurrency is made out of the same stuff that makes a Chinese lantern fly.
Show me the Gold, silver, medicine, or food in your hand, and I'll show you what runs the world.