The irrational exuberance in those still stuck in stock market bubblemania continues its resilience...
Saw an article today touting the (short lived) "benefit" of Yellen's re-acceleration of the bank run with her statements suggesting no ongoing need for providing any larger deposit guarantees as backstops... the benefit being that "the market" blamed Yellen and not Powell for the "beat down" this week... and, of course, that all being over now... we can and naturally should expect stocks to "rally" into the end of the month...
These idiots don't understand... no one has waved any magic wands ? The problem is not solved... ?
And, the problem in focus today is not even "the" problem... rather than a leading indicator of the problem that is still coming...
Bank runs... following bank shocks... are like the financial equivalent of having earthquakes... and then seeing all the water being sucked off the beach...
"wait for it" ???
Fed Balance Sheet Surges By Another $100BN Amid Bank Runs As Foreign Repos Soar By Record And Cash Floods Into Reverse Repo, Money Markets
The bank runs (had) slowed as the threat of immediate loss of bank deposits was "temporarily" removed... with Yellen, yesterday, removing the perception created only a few days before that all deposits were safe... apparently expecting a declaration of "there, fixed... back to normal" would convince markets to behave more confidently ?
But, reality hasn't changed... small banks still can't offer the rates that big banks can... so money will continue to flow out of deposits paying 0.5%... into those paying 4.5% ? Small to mid-sized banks are still trapped in a blind alley off a dead end street... offering them no obvious escape ?
And that was before the clown show recommenced:
Markets To Yellen: 'F**k Off'
The Treasury Secretary tried to fix her faux pas from yesterday, editing some text from her prepared remarks
Deleted paragraph from March 22:
“As I said last week, the US banking system is sound. The federal government’s recent actions have demonstrated our resolute commitment to take the necessary steps to ensure that depositors' savings remain safe.”
New paragraph on March 23:
“As I have said, we have used important tools to act quickly to prevent contagion. And they are tools we could use again. The strong actions we have taken ensure that Americans’ deposits are safe. Certainly, we would be prepared to take additional actions if warranted.”
But she removed the "US banking system is sound", sparking total chaos.
My take: sort of gives "important tools" a whole new meaning...
Where that leaves us now is with everyone KNOWING "rates lower" from here... but, still, with very few apparently understanding that "rates lower" isn't ALL and ONLY what is coming, still, in delayed impacts from having raised rates as fast, and as far, as they have... at a time when the economy was / is NOT as robust as they'd prefer you to believe ?
Even the events of the last months... from "inflation will just go away by itself, soon"... to raising rates at the fastest pace in history while thinking it shouldn't matter... to the recent total shit show... going beyond demonstrating no reason any one should have confidence in them... to proving any number of reasons they should not trust them at all... has still not shaken the confidence of the market bulls... who are still expecting the prospect of lower rates from here to be "all and only a good thing" that will force us into a new bull market... ?
They're not considering it as "necessary to repair the damages"... which only a few understand have yet to land...
Meanwhile... "they"continue lying about the economy and its performance... providing us with a bit of
an absurdity today,
Largest Jobs Website Lays Off Thousands Of Employees
as we can see layoffs continuing throughout the economy, while they continue to tout "strong jobs" in cooked numbers... because counting easily enabled fake "listings" published as actually offering jobs... using that inflated puffery in "strong job market" touts both as a proof of the need for higher rates, [because "too many people working" is what causes inflation ???] and as proof of the solid job performance of politicians, as we continue to endure "the worst economic policy in history".
Two things about "management of performance expectations": First is... you can't pull of lying to people convincingly when you repeatedly prove yourself to be both clownishly incompetent... and a liar... Second is... the lies you tell... don't actually become truth... and, sometimes, that matters... particularly in a sudden event of inundation creating a tsunami of awareness...
As market corrections are supposed to enable...
And then... change... because the abuses we see now are intolerable... and only able to impose failure...
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