Mnuchin went to meet with the big banks during the weekend to prevent so-called "liquidity problems", except there's none. His real purpose was to pump the stock market, a mini-QE done by private banks instead of the feds.
He threatened them with lawsuits, so big banks had to comply. They first pumped Wednesday, then when today's market began correcting, they jumped in at the last couple hours and pumped it again
Trump must have ordered this. It is said he tracks stock market every day, he must know the bloodshed in December and he doesn't want 2018 end in bear market territory and make headlines, which will make him look bad. He knows it's a confidence/psychology game so he pumped this market, hoping to reverse the bearish trend not just end of year, but maybe prevent a crashing bear market all-together in 2019.
I think what's he's doing is extremely harmful. He's pro-longing the bear market, and adding crazy volatility to it. It's way easier to make money in a constantly bearish or bullish market, then a volatile market. The volatile market will probably lead to illiquidity because people use margins less, due to high risk of margin calls and crazy swings.
Submitted December 27, 2018 at 08:56PM by nocehr http://bit.ly/2EUptaS
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