by Bob Rinear, The International Forecaster:
You’re living through history folks. Never in history has there been negative rates. Never in history has a central bank been this powerful. We’re in the very description of “never seen before” and if anyone says they know how it all works out, they’re lying. Get more popcorn, this show ain’t over.
Sometimes you look at this market and shake your head. We are really not very far from the all-time highs. And yet for the most part, our nation has been effectively shut down. Then there’s the employment issues. Let’s look:
Friday. Friday was jobs day, and we got the most horrific non farm payroll report in about 90 years. But, instead of the market crashing on the news, we ran higher. Much higher. 400+ points higher. What gives?
You all know what gives. The Federal Reserve gives. And gives and gives. What you might not know, is how it does it and why. So let’s dive into that cesspool and see how they’re doing the MLM (Magic levitation machine)
from 21st Century Wire:
The mortality statistics for COVID 19 have been incessantly hammered into our heads by the mainstream media (MSM). Every day they report these hardest of facts to justify the lockdown (house arrest) and to prove to us that living in abject fear of the COVID 19 syndrome is the only sensible reaction. Apparently, only the most lucrative vaccine ever devised can possibly save us.
by Pater Tenebrarum, Acting Man:
Printing Until the Cows Come Home…
It started out with Jay Powell planting a happy little money tree in 2019 to keep the repo market from suffering a terminal seizure. This essentially led to a restoration of the status quo ante “QT” (the mythical beast known as “quantitative tightening” that was briefly glimpsed in 2018/19). Thus the roach motel theory of QE was confirmed: once a central bank resorts to QE, a return to “standard monetary policy” becomes impossible. You can check in, but you can never leave.
by Wolf Richter, Wolf Street:
In addition to logistical difficulties of selling a home in the era of social distancing, there is the explosion of a historic unemployment crisis.
By the end of April, there will be 4.2 million mortgages in forbearance, or 7.6% of all mortgages, the American Enterprise Institute estimated in a note, based on forbearance data through April 19 released by the Mortgage Bankers Association yesterday.