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December 23, 2019 | Manipulation Giving Illusion of Positive Economy
Tim Wood
Is author of the newsletter Cycles News and Views and his site Cyclesman.com which provides investors with a place where they can obtain truthful, non biased, factual information about the financial markets.
Tim's primary focus is on the stock market, specifically the Dow Jones Industrial Average, the S&P 500, the Gold market, the Dollar and T-Bonds. The information presented in his website, Cyclesman.com, is based on technical analysis and not on the Hope and Hype heard by the so-called mainstream "analysts."
Non QE costing hundreds of billions
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Tim Wood Archives December 23rd, 2019
Posted In: HoweStreet.com Radio
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If you truly want to know why the stock market keeps going up AND why the fed has kept rates low you can listen to the following video. It’a an hour long but does explain a lot about whats going on. The issues in the US are much, much different then the rest of the world.
https://www.youtube.com/watch?v=huTz7b2wmRI
Simple explanation of REPO.
“The Repo Crisis for year-end has had the Fed pumping in a staggering amount of about $234 billion into the repo markets. They are exchanging high-quality capital for cash to suppress market volatility and maintain the central bank’s overnight funds level, which is used as a benchmark for multiple other short-term interest rates within a range of 1.5%-1.75%. People who fail to understand this institutional market keep thinking it is quantitative easing. With inflation low and unemployment back at 1960s levels, there is no reason for quantitative easing to support the economy. Instead, the Fed is trying to maintain control over short-term rates for the free market is pushing higher. This means the actions of the Fed are an attempt to PREVENT the rise in interest rates, not to stimulate the economy.” Martin Armstrong