Fed Just Admitted They CAN’T STOP QE Ever! $16 Trillion Negative Bonds Globally!
The intervention by the Federal Reserve and other central banks has been at a historic level. They told us that their actions were temporary. In 2008 and onward, congress grilled the Fed, and made it seem as though their actions would be challenged. Today, after never normalizing anything, politicians, bankers, analysts, and the retail trader have been begging the Fed to buy up everything. They don’t even realize the consequences.
Fed Official Wonders Whether Treasury Market Can Handle Massive Issuance Alone – WSJ
The Federal Reserve’s point man on financial regulation said the Treasury market has grown so large that some level of central bank involvement may need to continue to ensure orderly trading conditions. Randal Quarles, the Fed’s vice chairman for supervision, was discussing the outlook for the central bank’s $120 billion-a-month in purchases of Treasury and mortgage debt.
The Treasury Market May Be So Big That the Fed Can’t Step Away – Bloomberg
Zambia Moves Closer to Default as Spotlight Cast on Debt Relief
(Bloomberg) — Zambia moved closer to becoming the first African nation to default on its dollar bonds since the onset of the coronavirus, making it a test case for nations worldwide battling to meet obligations to a range of lenders from bondholders to Chinese state banks.Holders of Zambia’s $3 billion of Eurobonds will vote next week on the country’s request for a six-month interest-payment holiday.
Canada, home of North America’s biggest housing bubble risk, defies pandemic with price hikes across the country | Financial Post
Canada, home of North America’s biggest housing bubble risk, defies pandemic with price hikes across the country
Median home price expected to reach $693,000 by the end of the year, a 7 per cent increase from the end of 2019 Even a once-in-a-century pandemic isn’t enough to cool the Canadian housing market, with prices nationwide now forecast to end the year higher than where they started.
Real estate prices are about to drop 10%
The wholesale disruption of COVID-19 is taking a toll on the real estate market. A new survey suggests that offices will remain under capacity for months, retail and hospitality will continue to struggle, and, despite some increases in single-family home values, real estate across the board will see its value fall around 10% next year.
Bankrupt chains hand their keys to the lenders
Indeed, several companies that have filed for bankruptcy since the pandemic have ended up sold in credit bids. CraftWorks, the owner of Logan’s Roadhouse and Old Chicago that declared bankruptcy before the pandemic, was sold through a credit bid in May.
(17) Sven Henrich on Twitter:
“The bull case: Nothing matters.
Not debt, not growth, not earnings, not layoffs, not valuations, not forward multiples, not tax hikes.
Keep buying historic valuations because the magic money fairy will keep bailing us out.” / Twitter
The bull case: Nothing matters.Not debt, not growth, not earnings, not layoffs, not valuations, not forward multiples, not tax hikes.Keep buying historic valuations because the magic money fairy will keep bailing us out.
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The Money GPS is the most active, most informative channel in the financial world. Day after day, breaking down the data and making it easy to understand. This channel is not here to help build a portfolio, give stock picks, or financial advice. It’s simply data that is generally not found through conventional means.
The stock market has gone higher as we have seen interest rates remain very low for many years. These financial institutions are clearly looking to improve corporate profits and as a result, need to buy tech stocks in 2020.
The statements, views and opinions expressed in this column are solely those of the author and do not necessarily represent those of The Duran.