from Junius Maltby:
by Dave Kranzler, Investment Research Dynamics:
The stock market spiked up last week as Trump started in with his trade war optimism tweets, which excited the algos and momentum chasers. As Monday rolled around, however, it was determined that a “Phase 1” trade agreement amounted to nothing more than a commitment from China to buy some farm products. On Tuesday China made the purchases contingent on Trump removing tariffs. So there is no “Phase 1” trade deal.
But the hedge fund computers don’t care. Now the market is bubbling higher on the reimplementation of Federal Reserve money printing. Call it whatever your want – QE, balance sheet growth, term repos, whatever. But the bottom line is that Fed is printing money and injecting it into the banking system, which thereby acts as a transmission mechanism channeling some portion of this liquidity into the stock market.
by Wolf Richter, Wolf Street:
“Does that mean that we have bad markets?”
This still doesn’t show who or what triggered the fire in the repo market in mid-September when overnight lending rates more than quadrupled and briefly hit 10%, but it confirms who sat there and watched the fire and fanned it though they could have extinguished it.
Due To The Weather, Midwest Farmers Fear Widespread Crop Failures And A “Record-Low” Harvest In 2019
by Michael Snyder, The Economic Collapse Blog:
Snow usually blankets the Upper Midwest around the first week of November, and so that means that many farmers in the Midwest only have about two weeks to salvage what they can before everything is lost. The unprecedented October blizzard that we just witnessed dumped massive amounts of snow on millions upon millions of acres of crops from Colorado to Minnesota. Even if the weather is absolutely perfect between now and November 1st, farmers are still “expecting massive crop losses”. In fact, one South Dakota lawmaker told the press that the crop losses will be “as devastating as we’ve ever seen”. And as you will see below, even parts of the Midwest that didn’t get hammered by the recent blizzard are potentially facing “record-low” harvests this year. We have never seen a year this bad for Midwest farmers in modern American history, but if the weather does not cooperate things could rapidly get much, much worse over the next two weeks.
by Wayne Jett, Classial Capital:
For weeks, financial observers have been agitated by astonishingly high sums of Federal Reserve Notes (“hundreds of billions of dollars”) moving from the Federal Reserve to borrowers under lending instruments known as repurchase agreements, or “repos.” On September 17, e.g., the Fed created and loaned $53 billion to unnamed parties and, on September 18, an additional $75 billion. Those two days are the mere tip of the iceberg. Who are the borrowers and why is the Fed providing them so much money?
Historic Midwest Blizzard Has Farmers “Expecting Massive Crop Losses – As Devastating As We’ve Ever Seen”
by Michael Snyder, End Of The American Dream:
An unprecedented October blizzard that hit just before harvest time has absolutely devastated farms all across the U.S. heartland. As you will see below, one state lawmaker in North Dakota is saying that the crop losses will be “as devastating as we’ve ever seen”. This is the exact scenario that I have been warning about for months, and now it has materialized. Due to endless rain and horrific flooding early in the year, many farmers in the middle of the country faced very serious delays in getting their crops planted. So we really needed good weather at the end of the season so that the crops could mature and be harvested in time, and that did not happen. Instead, the historic blizzard that we just witnessed dumped up to 2 feet of snow from Colorado to Minnesota. In fact, one city in North Dakota actually got 30 inches of snow. In the end, this is going to go down as one of the worst crop disasters that the Midwest has ever seen, and ultimately this crisis is going to affect all of us.