G' Afternoon
Re: Many wondered why I posted a Blog with Bible verses?
Or why commodity traders out there should be going LOOOONgggg Wheat; and the rest of us might want to buy a little extra flour?
Well, I did not do it cavalierly and they have not long to wonder.
Revelation prophesy of the 3rd >> Black Horse
"... And I beheld, and lo a black horse; and he that sat on him had a
pair of balances in his hand. 6 And
I heard a voice in the midst of the four beasts say, A measure of wheat
for a penny, and three measures of barley for a penny; and see thou hurt not the oil and the wine. ...?
Measure >> equals just enough to keep a man alive for one day
Penny >> equals a denarius or a days wages
Translation: the poor will barely stay alive if they work hard every day!
And...
see thou hurt not the oil and the wine = rich do not suffer
Thus, working all day a man would have just enough to stay alive!
But the rich will not suffer!
Now, knowing these things prophesied 1,926 years ago, just watch what now happens in the world, because ...
China is just now gripped by unusually bizarre natural phenomena that will produce the results prophesied of in Revelation 6:6.
4/10/2020 Wheat Rust has destroyed all 13 million acres of planted wheat in 9 Provinces
Simultaneously
Heavy Rains in all Chinese Southern Provinces have flooded tens millions of acres of wheat and destroyed those crops with fungi mediated wheat root rot
&
Before these things >>> All Provinces had seen widespread Wheat Powdery Mildew and other unidentified diseases, producing fields of grains that had turned into fields of weeds**
& If all that weren't enough
4/20/2020 Massive Blizzards** just hit the Northern provinces, blanketing those farms with several feet of blowing snow and freezing all the grain crops.
Oh, Bye the bye, ABC gets it, too!
https://abcnews.go.com/Health/coronavirus-updates-warns-people-ready-living/story?id=70258498
Richard
** I have the video proof of all these things that has been filmed by Chinese farmers, who all predict the worst year ever.
The last full blown Kondratieff Long-Wave contraction occurred in the 30's. The next Kondratieff Long-Wave finally commenced in 2007-08, after being delayed by several foolish and ultimately unsuccessful interdictions of the US Monetary and Fiscal authorities. Its reemergence is now ordained with the FED's insanely structured ZIRP! Therefore, the Kondratieff's full impact is due to reassert itself in the next 18 to 36 months. If you want to know more: go to, www.polestarcomm.com
Wednesday, April 22, 2020
Addendum to last Blog
G' Mornin
Re: My alleged exaggeration of the bellicose nature of current China/US verbal exchanges?
Once again, to learn the truth you must go to International News Sources: and the inferred (conclusions drawn by the reader) antagonistic level of China/US rhetorical barbs is actually much more dangerous than indicated herein:
https://www.outlookindia.com/website/story/world-news-irresponsible-ill-intentioned-china-refutes-us-remarks-on-beijing-secretly-resuming-underground-nuclear-tests/350874
Re: My alleged exaggeration of the bellicose nature of current China/US verbal exchanges?
Once again, to learn the truth you must go to International News Sources: and the inferred (conclusions drawn by the reader) antagonistic level of China/US rhetorical barbs is actually much more dangerous than indicated herein:
https://www.outlookindia.com/website/story/world-news-irresponsible-ill-intentioned-china-refutes-us-remarks-on-beijing-secretly-resuming-underground-nuclear-tests/350874
Monday, April 20, 2020
My Fears of new Black Swan Unwarranted?
Dear Folks,
G'Mornin (11:56 AM),
Re: Veracity of my posts.
I have -- with my Blogs of yesterday and today * -- been accused of exaggerating things and possibly worse.
So, I will let you see what I monitor and my strategic monitoring of such foreign communications has always led me to understand things in China** ahead of those who only listen or watch our MSM.
So among many CCP communications - I have read in last few days - here is just one:
Chinese CCP Official Communications:
April 17th: Xilu net (Chinese Military Portal Site) East Theatre Operations: Cast Off Illusions, Be Prepared For War!
2020-4-17 11:29:05
What followed was a ten page directive to all Party Commanders, Military Officers, Party Comrades and Personnel
Now did this Chinese CCP preliminary Call to Arms occur in a complete void?
No, it did not: the publicly disseminated USA/China rhetoric has increasingly become antagonistic and has escalated: i.e. it's not the words it's the spirit of the words .
And, don't forget, by definition Black Swans arrive without any fanfare for the Masses; otherwise they would NOT be Black Swans; would they!
So, while I earnestly pray I am wrong, I believe holding long stock positions in such an already strongly overvalued Stock Market at this Macro-Economic perilous moment is not prudent.
Ve'll all see!
Won't we.
Richard
* Edited 4:35 PM after this AM post.
** Including the vastly undercounted of actual dead in China due to their CCP Wuhan Virus; for, it is the real number that has panicked all the World Leaders of ALL the countries in the World; and it is not the silly numbers >>> you guys read about or listen to on the USA MSM!
G'Mornin (11:56 AM),
Re: Veracity of my posts.
I have -- with my Blogs of yesterday and today * -- been accused of exaggerating things and possibly worse.
So, I will let you see what I monitor and my strategic monitoring of such foreign communications has always led me to understand things in China** ahead of those who only listen or watch our MSM.
So among many CCP communications - I have read in last few days - here is just one:
Chinese CCP Official Communications:
April 17th: Xilu net (Chinese Military Portal Site) East Theatre Operations: Cast Off Illusions, Be Prepared For War!
2020-4-17 11:29:05
What followed was a ten page directive to all Party Commanders, Military Officers, Party Comrades and Personnel
Now did this Chinese CCP preliminary Call to Arms occur in a complete void?
No, it did not: the publicly disseminated USA/China rhetoric has increasingly become antagonistic and has escalated: i.e. it's not the words it's the spirit of the words .
And, don't forget, by definition Black Swans arrive without any fanfare for the Masses; otherwise they would NOT be Black Swans; would they!
So, while I earnestly pray I am wrong, I believe holding long stock positions in such an already strongly overvalued Stock Market at this Macro-Economic perilous moment is not prudent.
Ve'll all see!
Won't we.
Richard
* Edited 4:35 PM after this AM post.
** Including the vastly undercounted of actual dead in China due to their CCP Wuhan Virus; for, it is the real number that has panicked all the World Leaders of ALL the countries in the World; and it is not the silly numbers >>> you guys read about or listen to on the USA MSM!
3rd Alert This Year and since 3/16/09
G'Mornin.
Re: 3rd Alert as 4th Black Swan Flies Into View.
I really don't enjoy doing this, but the continued dramatically negative effect of the 3rd Black Swan - Oil - and now the ever closer arrival of the 4th Black Swan has forced my hand.
Let me explain: for the first time since 3/16/09 I am giving an all-out Alert that runs counter to my Technical OBV & KST Indicators that have functioned beautifully since 2009; and that is because for the second time since 3/16/09 I am giving an all out Alert to sell everything and to buy at least 5% or more in long-term Puts; and this is based on extraneous factors to the Broad Market indicators.
For, despite the fact that the market direction is still up -- by the criteria I have consistently followed --- I am no longer going to follow them: that is because the world-wide confluence of extremely dangerous extraneous factors has outweighed purely market indicators.
Namely, the 3rd Black Swan -- Oil -- has crashed to such levels that a market affect must be forthcoming; and the POTUS has verbally threatened to impose a tariff on all imported oil; and I believe that he will very likely do it.
However, it is the 4th Black Swan that now has overcome everything else in my calculations.
The 4th Black Swan is War, just as I indicated in my last post; but this War will not be with a third rate military power that possesses no offensive capabilities.
And the outcome -- even with a very limited engagement immediately followed by negotiations -- would still have dreadfully devastating physical, moral and psychological effects and affects; from which I can only conclude all the World Stock Markets would suffer steep declines.
So, I believe that the better part of investment prudence is to sell everything here at 24,000 after having called for a Blow-Out Rally from 18,000 Dow Jones on 3/23 that, while not a Blow-Out Rally, did turn out to be bigger rally than any other Bear Market Rally since the 30's - at least.
I sincerely hope that I am wrong, but the visible and invisible signs portending the realization of the 4th Black Swan have become overwhelming over the last week.
Richard
Re: 3rd Alert as 4th Black Swan Flies Into View.
I really don't enjoy doing this, but the continued dramatically negative effect of the 3rd Black Swan - Oil - and now the ever closer arrival of the 4th Black Swan has forced my hand.
Let me explain: for the first time since 3/16/09 I am giving an all-out Alert that runs counter to my Technical OBV & KST Indicators that have functioned beautifully since 2009; and that is because for the second time since 3/16/09 I am giving an all out Alert to sell everything and to buy at least 5% or more in long-term Puts; and this is based on extraneous factors to the Broad Market indicators.
For, despite the fact that the market direction is still up -- by the criteria I have consistently followed --- I am no longer going to follow them: that is because the world-wide confluence of extremely dangerous extraneous factors has outweighed purely market indicators.
Namely, the 3rd Black Swan -- Oil -- has crashed to such levels that a market affect must be forthcoming; and the POTUS has verbally threatened to impose a tariff on all imported oil; and I believe that he will very likely do it.
However, it is the 4th Black Swan that now has overcome everything else in my calculations.
The 4th Black Swan is War, just as I indicated in my last post; but this War will not be with a third rate military power that possesses no offensive capabilities.
And the outcome -- even with a very limited engagement immediately followed by negotiations -- would still have dreadfully devastating physical, moral and psychological effects and affects; from which I can only conclude all the World Stock Markets would suffer steep declines.
So, I believe that the better part of investment prudence is to sell everything here at 24,000 after having called for a Blow-Out Rally from 18,000 Dow Jones on 3/23 that, while not a Blow-Out Rally, did turn out to be bigger rally than any other Bear Market Rally since the 30's - at least.
I sincerely hope that I am wrong, but the visible and invisible signs portending the realization of the 4th Black Swan have become overwhelming over the last week.
Richard
Saturday, April 18, 2020
Yet, Another Black Swan Appears On The Horizon!
Revelation 6:5-8 AKJV
4 And there went out another horse that was red: and power was given to him that sat thereon to take peace from the earth, and that they should kill one another: and there was given unto him a great sword.
5 And
when he had opened the third seal, I heard the third beast say, Come
and see. And I beheld, and lo a black horse; and he that sat on him had a
pair of balances in his hand. 6 And
I heard a voice in the midst of the four beasts say, A measure of wheat
for a penny, and three measures of barley for a penny; and see thou hurt not the oil and the wine.
7 And when he had opened the fourth seal, I heard the voice of the fourth beast say, Come and see. 8 And
I looked, and behold a pale horse: and his name that sat on him was
Death, and Hell followed with him. And power was given unto them over
the fourth part of the earth, to kill with sword, and with hunger, and
with death, and with the beasts of the earth.
Matthew 24:6-7 AKJV
6 And ye shall hear of wars and rumours of wars:
see that ye be not troubled: for all these things must come to pass, but the end is not yet.
7 For nation shall rise against nation, and kingdom against kingdom:
and there shall be famines, and pestilences, and earthquakes, in divers places.
Monday, April 13, 2020
They're all Bullish now!
Hey Folks,
Re: Two of the Biggest Bears are now Bullish, after a nearly 30% rally from the recent lows.
Ain't they just too cute and always stupidly behind the curve?
https://www.cnbc.com/2020/04/08/howard-marks-memo-oaktree-founder-says-its-time-to-stop-playing-defense.html
And, of course, there's the big dog, Goldman Sachs: Remember they were extremely Bearish on 3/29; and said then that the Market can't go up again until three things happen >>>> that never happened:
https://www.cnbc.com/2020/03/29/goldman-says-the-market-wont-bottom-until-these-3-things-happen.html
Well, this very morning Goldman Sachs - very conveniently - forgot what they said back on 3/29 and just went Bullish predicting a rally of S&P 500 and hitting 3,000!
Where were all of them on 3/23/20 when I said BUY EVERYTHING?
And 'Oh, Bye the Bye?'
Where were all of them on 2/2/20 when I issued a HUGE Black Swan and said to put at least 5% in puts?
Can you imagine, people actually listen to these Clowns?
These guys actually get paid for their ever wrong claptrap and after the move advice; and their firms charge huge fees to listen to their BS?
So, just for them, I offer a glint of things to come, on the record, on this day (4/13/20) just for these Clowns; and I guarantee they will miss this coming attraction too >>> until long after the fact:
Under cover of a COVID Tarp: the Fed has just injected trillions and Trillions of Airdollars into a whole bunch of over-leveraged losers AND they have swept a whole bunch of Junk-bonds and bonds that were soon to be rated Junk into the Black Hole of the Fed's Balance Sheet** never to see the open markets again!
What a Majik Act!
So, this market clearing operation by the Fed has now set the Trap of all Traps for the Biggest Bull Trap of the Last Three Centuries!
Richard
** Since a similar action in the Credit Crisis of 2008/09, the Fed's Balance Sheet has become the trash can that forever hides the insanity of a perennially over-leveraged economy and forever removes from the markets JUNK, which once upon a time in the recent past could only have been cleared from the markets in a Stock Market Crash and accompanying Recession or Depression!
Re: Two of the Biggest Bears are now Bullish, after a nearly 30% rally from the recent lows.
Ain't they just too cute and always stupidly behind the curve?
https://www.cnbc.com/2020/04/08/howard-marks-memo-oaktree-founder-says-its-time-to-stop-playing-defense.html
And, of course, there's the big dog, Goldman Sachs: Remember they were extremely Bearish on 3/29; and said then that the Market can't go up again until three things happen >>>> that never happened:
https://www.cnbc.com/2020/03/29/goldman-says-the-market-wont-bottom-until-these-3-things-happen.html
Well, this very morning Goldman Sachs - very conveniently - forgot what they said back on 3/29 and just went Bullish predicting a rally of S&P 500 and hitting 3,000!
Where were all of them on 3/23/20 when I said BUY EVERYTHING?
And 'Oh, Bye the Bye?'
Where were all of them on 2/2/20 when I issued a HUGE Black Swan and said to put at least 5% in puts?
Can you imagine, people actually listen to these Clowns?
These guys actually get paid for their ever wrong claptrap and after the move advice; and their firms charge huge fees to listen to their BS?
So, just for them, I offer a glint of things to come, on the record, on this day (4/13/20) just for these Clowns; and I guarantee they will miss this coming attraction too >>> until long after the fact:
Under cover of a COVID Tarp: the Fed has just injected trillions and Trillions of Airdollars into a whole bunch of over-leveraged losers AND they have swept a whole bunch of Junk-bonds and bonds that were soon to be rated Junk into the Black Hole of the Fed's Balance Sheet** never to see the open markets again!
What a Majik Act!
So, this market clearing operation by the Fed has now set the Trap of all Traps for the Biggest Bull Trap of the Last Three Centuries!
Richard
** Since a similar action in the Credit Crisis of 2008/09, the Fed's Balance Sheet has become the trash can that forever hides the insanity of a perennially over-leveraged economy and forever removes from the markets JUNK, which once upon a time in the recent past could only have been cleared from the markets in a Stock Market Crash and accompanying Recession or Depression!
Friday, April 10, 2020
Wow!! MSM and Alt Media Agree on this Fed Disaster in the making
Well, here is an excellent MSM article on the New Federal Reserve Funded Socialism, where nobody BUT nobody is allowed to fail:
https://www.cnbc.com/2020/04/09/chamath-palihapitiya-us-needs-to-let-hedge-funds-billionaires-fail.html?__source=twitter%7Cmain
Chamath Palihapitiya: US shouldn’t bail out hedge funds, billionaires during coronavirus pandemic
Key Points
- Chamath Palihapitiya, founder and CEO of investment firm Social Capital, said the U.S. shouldn’t be bailing out billionaires and hedge funds during the coronavirus pandemic.
- Palihapitiya added that he was concerned that the Federal Reserve’s plans to support to economy during the COVID-19 crisis are going to have consequences, and it would have been better to just give more money to Americans.
And here is an excellent Alternative Media article on the New Federal Reserve Funded Socialism, where nobody BUT nobody is allowed to fail:
https://global-macro-monitor.com/2020/04/09/wall-street-has-now-morphed-into-a-full-blown-soviet-sausage-factory/
Wall Street Has Now Morphed Into A Full Blown Soviet Sausage Factory
To paraphrase the police officer who told me my old neighborhood had burned down during the 2017 NorCal fires, “the markets are no more.”After the Fed announced it is bailing out junk bonds today, Wall Street has now morphed into a full-blown “Soviet Sausage Factory.”
Jay Powell probably had no choice and needed to blunt the blow of another 6 million-plus print of new unemployment claims but isn’t Socialism and state intervention dandy?
We can understand providing support to local and state municipalities, now strapped with severe cash flow problems as their tax revenues have gone to near zero, but junk?
Thursday, April 9, 2020
Fed just wrote the Requiem of Requiems >>> for the BEARS!!
Hey Folks,
Re: What I saw on March the 23rd has now come into very clear focus for those with eyes to seeeeeeeeeee!
This day is the first day of the rest of your lives >>> for the Bulls; and this day is the day they buried the BEARS!
There is apparently only one way now for all markets, since The Fed has removed all moral hazard and is now going to buy anything and everything:
So maybe, Federal Reserve should be renamed the Hotel California?
Welcome to the Fed's Hotel California
Such a Lovely Place
Plenty of Room at the Hotel California
You can check out anytime you like >>>> but you can never leave
This could be Heaven and this could be Hell
Welcome to the Hotel California
Such a lovely place
Liv'in it uuuuup at the Hotel California
https://www.youtube.com/watch?v=nY2INMutWxk
BUT the Ancient Lake Awaits!!!!!!!!!!!!
Re: What I saw on March the 23rd has now come into very clear focus for those with eyes to seeeeeeeeeee!
This day is the first day of the rest of your lives >>> for the Bulls; and this day is the day they buried the BEARS!
There is apparently only one way now for all markets, since The Fed has removed all moral hazard and is now going to buy anything and everything:
So maybe, Federal Reserve should be renamed the Hotel California?
Welcome to the Fed's Hotel California
Such a Lovely Place
Plenty of Room at the Hotel California
You can check out anytime you like >>>> but you can never leave
This could be Heaven and this could be Hell
Welcome to the Hotel California
Such a lovely place
Liv'in it uuuuup at the Hotel California
https://www.youtube.com/watch?v=nY2INMutWxk
BUT the Ancient Lake Awaits!!!!!!!!!!!!
And Why We should wet Ours!!!!!!!!!!!!!!
Hey Folks,
Re: The Pre-ordained Long-Awaited End of the Fed Bubble Machine has finally arrived!
Ride the King's Highway
Ride The Highway West >> Babeee
Riiiiide the Snake
Ride the Snake to the lake
The aanci'ent Lake >>>> Babeee
The Snake is looooooong
Seven Miles
Ride the Snake
He's Old and his skin is cold
The West is the Best
The west is the Best
Hear Hear!
and we'll do the rest
This is the End
My only friend the end
The end of laughter and soft lights
This is theeee EEEND
https://www.youtube.com/watch?v=BXqPNlng6uI
So what is the Snake? What is the King's Highway?
What is the Ancient Lake?
They are all hinted at in the following quote from this AM's Fed Announcement.
Stay Tuned!!
" ... ... The Federal Reserve and the Treasury recognize that businesses vary widely in their financing needs, particularly at this time, and, as the program is being finalized, will continue to seek input from lenders, borrowers, and other stakeholders to make sure the program supports the economy as effectively and efficiently as possible while also safeguarding taxpayer funds. Comments may be sent to the feedback form until April 16.
To support further credit flow to households and businesses, the Federal Reserve will broaden the range of assets that are eligible collateral for TALF. As detailed in an updated term sheet, TALF-eligible collateral will now include the triple-A rated tranches of both outstanding commercial mortgage-backed securities and newly issued collateralized loan obligations. The size of the facility will remain $100 billion, and TALF will continue to support the issuance of asset-backed securities that fund a wide range of lending, including student loans, auto loans, and credit card loans.
The Municipal Liquidity Facility will help state and local governments better manage cash flow pressures in order to continue to serve households and businesses in their communities. The facility will purchase up to $500 billion of short term notes directly from U.S. states (including the District of Columbia), U.S. counties with a population of at least two million residents, and U.S. cities with a population of at least one million residents. Eligible state-level issuers may use the proceeds to support additional counties and cities. In addition to the actions described above, the Federal Reserve will continue to closely monitor conditions in the primary and secondary markets for municipal securities and will evaluate whether additional measures are needed to support the flow of credit and liquidity to state and local governments.
All of the facilities mentioned above are established by the Federal Reserve under the authority of Section 13(3) of the Federal Reserve Act, with approval of the Treasury Secretary.
The Federal Reserve remains committed to using its full range of tools to support the flow of credit to households and businesses to counter the economic impact of the coronavirus pandemic and promote a swift recovery once the disruptions abate. "
Re: The Pre-ordained Long-Awaited End of the Fed Bubble Machine has finally arrived!
Ride the King's Highway
Ride The Highway West >> Babeee
Riiiiide the Snake
Ride the Snake to the lake
The aanci'ent Lake >>>> Babeee
The Snake is looooooong
Seven Miles
Ride the Snake
He's Old and his skin is cold
The West is the Best
The west is the Best
Hear Hear!
and we'll do the rest
This is the End
My only friend the end
The end of laughter and soft lights
This is theeee EEEND
https://www.youtube.com/watch?v=BXqPNlng6uI
So what is the Snake? What is the King's Highway?
What is the Ancient Lake?
They are all hinted at in the following quote from this AM's Fed Announcement.
Stay Tuned!!
" ... ... The Federal Reserve and the Treasury recognize that businesses vary widely in their financing needs, particularly at this time, and, as the program is being finalized, will continue to seek input from lenders, borrowers, and other stakeholders to make sure the program supports the economy as effectively and efficiently as possible while also safeguarding taxpayer funds. Comments may be sent to the feedback form until April 16.
To support further credit flow to households and businesses, the Federal Reserve will broaden the range of assets that are eligible collateral for TALF. As detailed in an updated term sheet, TALF-eligible collateral will now include the triple-A rated tranches of both outstanding commercial mortgage-backed securities and newly issued collateralized loan obligations. The size of the facility will remain $100 billion, and TALF will continue to support the issuance of asset-backed securities that fund a wide range of lending, including student loans, auto loans, and credit card loans.
The Municipal Liquidity Facility will help state and local governments better manage cash flow pressures in order to continue to serve households and businesses in their communities. The facility will purchase up to $500 billion of short term notes directly from U.S. states (including the District of Columbia), U.S. counties with a population of at least two million residents, and U.S. cities with a population of at least one million residents. Eligible state-level issuers may use the proceeds to support additional counties and cities. In addition to the actions described above, the Federal Reserve will continue to closely monitor conditions in the primary and secondary markets for municipal securities and will evaluate whether additional measures are needed to support the flow of credit and liquidity to state and local governments.
All of the facilities mentioned above are established by the Federal Reserve under the authority of Section 13(3) of the Federal Reserve Act, with approval of the Treasury Secretary.
The Federal Reserve remains committed to using its full range of tools to support the flow of credit to households and businesses to counter the economic impact of the coronavirus pandemic and promote a swift recovery once the disruptions abate. "
They Wet'in Their Pants!!!!!!!!!!!!!
https://www.federalreserve.gov/newsevents/pressreleases/monetary20200409a.htm
The Federal Reserve on Thursday took additional
actions to provide up to $2.3 trillion in loans to support the economy.
This funding will assist households and employers of all sizes and
bolster the ability of state and local governments to deliver critical
services during the coronavirus pandemic.
"Our country's highest priority must be to address this public health crisis, providing care for the ill and limiting the further spread of the virus," said Federal Reserve Board Chair Jerome H. Powell. "The Fed's role is to provide as much relief and stability as we can during this period of constrained economic activity, and our actions today will help ensure that the eventual recovery is as vigorous as possible."
The Federal Reserve's role is guided by its mandate from Congress to promote maximum employment and stable prices, along with its responsibilities to promote the stability of the financial system. In support of these goals, the Federal Reserve is using its full range of authorities to provide powerful support for the flow of credit in the economy.
The actions the Federal Reserve is taking today to support employers of all sizes and communities across the country will:
The Federal Reserve and the Treasury recognize that businesses vary widely in their financing needs, particularly at this time, and, as the program is being finalized, will continue to seek input from lenders, borrowers, and other stakeholders to make sure the program supports the economy as effectively and efficiently as possible while also safeguarding taxpayer funds. Comments may be sent to the feedback form until April 16.
To support further credit flow to households and businesses, the Federal Reserve will broaden the range of assets that are eligible collateral for TALF. As detailed in an updated term sheet, TALF-eligible collateral will now include the triple-A rated tranches of both outstanding commercial mortgage-backed securities and newly issued collateralized loan obligations. The size of the facility will remain $100 billion, and TALF will continue to support the issuance of asset-backed securities that fund a wide range of lending, including student loans, auto loans, and credit card loans.
The Municipal Liquidity Facility will help state and local governments better manage cash flow pressures in order to continue to serve households and businesses in their communities. The facility will purchase up to $500 billion of short term notes directly from U.S. states (including the District of Columbia), U.S. counties with a population of at least two million residents, and U.S. cities with a population of at least one million residents. Eligible state-level issuers may use the proceeds to support additional counties and cities. In addition to the actions described above, the Federal Reserve will continue to closely monitor conditions in the primary and secondary markets for municipal securities and will evaluate whether additional measures are needed to support the flow of credit and liquidity to state and local governments.
All of the facilities mentioned above are established by the Federal Reserve under the authority of Section 13(3) of the Federal Reserve Act, with approval of the Treasury Secretary.
The Federal Reserve remains committed to using its full range of tools to support the flow of credit to households and businesses to counter the economic impact of the coronavirus pandemic and promote a swift recovery once the disruptions abate.
For media inquiries, call 202-452-2955
Term Sheet: Term Asset-Back
Press Release
April 09, 2020
Federal Reserve takes additional actions to provide up to $2.3 trillion in loans to support the economy
For release at 8:30 a.m. EDT
"Our country's highest priority must be to address this public health crisis, providing care for the ill and limiting the further spread of the virus," said Federal Reserve Board Chair Jerome H. Powell. "The Fed's role is to provide as much relief and stability as we can during this period of constrained economic activity, and our actions today will help ensure that the eventual recovery is as vigorous as possible."
The Federal Reserve's role is guided by its mandate from Congress to promote maximum employment and stable prices, along with its responsibilities to promote the stability of the financial system. In support of these goals, the Federal Reserve is using its full range of authorities to provide powerful support for the flow of credit in the economy.
The actions the Federal Reserve is taking today to support employers of all sizes and communities across the country will:
- Bolster the effectiveness of the Small Business Administration's Paycheck Protection Program (PPP) by supplying liquidity to participating financial institutions through term financing backed by PPP loans to small businesses. The PPP provides loans to small businesses so that they can keep their workers on the payroll. The Paycheck Protection Program Liquidity Facility (PPPLF) will extend credit to eligible financial institutions that originate PPP loans, taking the loans as collateral at face value;
- Ensure credit flows to small and mid-sized businesses with the purchase of up to $600 billion in loans through the Main Street Lending Program. The Department of the Treasury, using funding from the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) will provide $75 billion in equity to the facility;
- Increase the flow of credit to households and businesses through capital markets, by expanding the size and scope of the Primary and Secondary Market Corporate Credit Facilities (PMCCF and SMCCF) as well as the Term Asset-Backed Securities Loan Facility (TALF). These three programs will now support up to $850 billion in credit backed by $85 billion in credit protection provided by the Treasury; and
- Help state and local governments manage cash flow stresses caused by the coronavirus pandemic by establishing a Municipal Liquidity Facility that will offer up to $500 billion in lending to states and municipalities. The Treasury will provide $35 billion of credit protection to the Federal Reserve for the Municipal Liquidity Facility using funds appropriated by the CARES Act.
The Federal Reserve and the Treasury recognize that businesses vary widely in their financing needs, particularly at this time, and, as the program is being finalized, will continue to seek input from lenders, borrowers, and other stakeholders to make sure the program supports the economy as effectively and efficiently as possible while also safeguarding taxpayer funds. Comments may be sent to the feedback form until April 16.
To support further credit flow to households and businesses, the Federal Reserve will broaden the range of assets that are eligible collateral for TALF. As detailed in an updated term sheet, TALF-eligible collateral will now include the triple-A rated tranches of both outstanding commercial mortgage-backed securities and newly issued collateralized loan obligations. The size of the facility will remain $100 billion, and TALF will continue to support the issuance of asset-backed securities that fund a wide range of lending, including student loans, auto loans, and credit card loans.
The Municipal Liquidity Facility will help state and local governments better manage cash flow pressures in order to continue to serve households and businesses in their communities. The facility will purchase up to $500 billion of short term notes directly from U.S. states (including the District of Columbia), U.S. counties with a population of at least two million residents, and U.S. cities with a population of at least one million residents. Eligible state-level issuers may use the proceeds to support additional counties and cities. In addition to the actions described above, the Federal Reserve will continue to closely monitor conditions in the primary and secondary markets for municipal securities and will evaluate whether additional measures are needed to support the flow of credit and liquidity to state and local governments.
All of the facilities mentioned above are established by the Federal Reserve under the authority of Section 13(3) of the Federal Reserve Act, with approval of the Treasury Secretary.
The Federal Reserve remains committed to using its full range of tools to support the flow of credit to households and businesses to counter the economic impact of the coronavirus pandemic and promote a swift recovery once the disruptions abate.
For media inquiries, call 202-452-2955
Term Sheet: Term Asset-Back
Monday, April 6, 2020
Quick Update
Howdy,
Re: Whence we go now?
I have been asked by many, if there is an update?
For those of you who haven't followed me and my recommendations as to Stock Market direction:
I am only interested in Macro Moves; therefore day to day activity, for which Traders yearn and burn, I have no interest in.
Concerning Macro Moves I give a signal and then I shutup >>> until something changes.
Therefore on the subject of Stock Market Calls >> I don't engage in excess palaver as do most White Men.
So, I stick with my Bull Call of 3/23/20 for an Upside Rally that will surprise all Bears and new found Bears and all their cubs; and the Sharks of the Stock Market are now in the process of KILLING THE F_CKIN BEARS!
Another update will be forthcoming and I will see y'all >>> when that process is over.
Richard
Re: Whence we go now?
I have been asked by many, if there is an update?
For those of you who haven't followed me and my recommendations as to Stock Market direction:
I am only interested in Macro Moves; therefore day to day activity, for which Traders yearn and burn, I have no interest in.
Concerning Macro Moves I give a signal and then I shutup >>> until something changes.
Therefore on the subject of Stock Market Calls >> I don't engage in excess palaver as do most White Men.
So, I stick with my Bull Call of 3/23/20 for an Upside Rally that will surprise all Bears and new found Bears and all their cubs; and the Sharks of the Stock Market are now in the process of KILLING THE F_CKIN BEARS!
Another update will be forthcoming and I will see y'all >>> when that process is over.
Richard
Subscribe to:
Posts (Atom)