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Fed Panics; Announces "Coordinated" Daily US Dollar Swap Lines To Ease Banking Crisis | ZeroHedge

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"The market stops panicking when central banks start panicking"
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In January 2022, just around the time the Fed was about to launch its most aggressive tightening campaign since Volcker, we warned "remember, every Fed tightening cycle ends in disaster and then, much more Fed easing"

Remember, every Fed tightening cycle ends in disaster and then, much more Fed easing pic.twitter.com/zX7Dur8nLG
— zerohedge (@zerohedge) January 5, 2022
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Fast forward to just over a week ago, when the Fed tightening cycle indeed ended in disaster when SIVB became the first (of many) banks to fail, a chain of dominoes that culminated with today's collapse of Credit Suisse - a systematically important bank with $600BN in assets.

And then, at 5pm, the easing officially began, because while a bunch of laughable macrotourists were arguing on FinTwit whether last week's record surge in the Fed's discount window was QE or wasn't QE (answer: it didn't matter, because as we said, it assured what comes next), the Fed finally capitulated, just as we warned over and over and over that it would...

Every time FRAOIS has been here, the Fed capitulated
— zerohedge (@zerohedge) March 17, 2023
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If the Fed does not contain the regional bank collapse, there will be another great depression.

Small/medium banks account for 50% of US commercial and industrial lending, 60% of residential real estate lending, 80% of commercial real estate lending, and 45% of consumer lending pic.twitter.com/wzTMHxSnXI
— zerohedge (@zerohedge) March 18, 2023
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"Fed either pivots too early and turns dovish in to a high inflation scenario which is fairly bearish the USD thus helping gold or they pivot too late and cause a much bigger recession than is priced in right now, resulting flight to safety helps gold." - Goldman
— zerohedge (@zerohedge) January 5, 2023
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... and at exactly 5pm the Fed announced "coordinated central bank action to enhance the provision of U.S. dollar liquidity" by opening daily Dollar Swap lines with all major central banks, in a carbon copy repeat of the Fed's panicked post-covid crisis policy response playbook.

The Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, the Federal Reserve, and the Swiss National Bank are today announcing a coordinated action to enhance the provision of liquidity via the standing U.S. dollar liquidity swap line arrangements.
To improve the swap lines' effectiveness in providing U.S. dollar funding, the central banks currently offering U.S. dollar operations have agreed to increase the frequency of 7-day maturity operations from weekly to daily. These daily operations will commence on Monday, March 20, 2023, and will continue at least through the end of April.
The network of swap lines among these central banks is a set of available standing facilities and serve as an important liquidity backstop to ease strains in global funding markets, thereby helping to mitigate the effects of such strains on the supply of credit to households and businesses.
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And once the USD swap lines are reopened, the rest of the cavalry follows: rate cuts, QE (the real stuff, not that Discount Window nonsense), etc, etc. In fact, we have already seen a near record surge in reserve injections:
 
BITCHCOIN at a 9 month high.....18000.00 to 28000.00

In the past when we get a wash out in March on stocks the rest of the year is good.

This is fed week....will they raise again?? Will they pause? will they cut??

what will they say??
 
words of wisdom I stole...the last two very important

trading is crazy
generally if the trade is obvious (willam oneill) it probably will not work

traders are only paid when they take risk (shadow1)

usually the best trades seem the most risky.

90 pct of trades are now done by ALGO computers

john carter- the markets job is to take the most amount of money from
traders it can. It is an equal opportunity dream destroyer.

the market works against those who think the most logically.
the market is intentionally devious.
 
RALLY!!! EL finally moved...was worried about your dog lol

yesterday was a fake out.....got people to sell and others to short...today they get punished!!! That's how it works

TIK TOK getting grilled by congress

Metals and energy UP.....everything up up and away

superman-flying.gif
 
movetheboat said:
Market ran outta gas!!!


clown-crying.gif
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And this is surprising? Was surprised how far the market tanked yesterday with the Fed Announcement. I guess many investors, who felt the Fed was not going to hike the interest rate, also believe that Unicorns fart rainbows...

Hope you "Players" took some quick profits earlier today...
 
Roccus7 said:
And this is surprising? Was surprised how far the market tanked yesterday with the Fed Announcement. I guess many investors, who felt the Fed was not going to hike the interest rate, also believe that Unicorns fart rainbows...

Hope you "Players" took some quick profits earlier today...
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i never stay late to DA party

WHEN THE MARKET gaps up like that it usually goes back and fills it...it did that so it can still rally now into the close
 
movetheboat said:
i never stay late to DA party

WHEN THE MARKET gaps up like that it usually goes back and fills it...it did that so it can still rally now into the close
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Looking like your expected rally is fizzling out... Well you got a little late rally, but nothing much more than kissing your sister...

Also looking like you're going to need a miracle for your bullish prediction for March.

I know, I know, you didn't factor in multiple bank failures into your equations...

1679599842325.png
 
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movetheboat said:
6 Weeks is up April 10th

March 6th s+p opened
4,055.15

even with the bank fiasco it's still not that bad...but no I didn't know about the bank failures.....got to work on that :)
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Just to lock you in, if you're looking at the S&P for 6 Weeks, that means the start date was Monday, Feb 27 when the S&P opened at 4,012.32, and the close price of Friday, April 7, 6 business weeks...

You are often inclined to "move the goalposts"...
 
Roccus7 said:
Just to lock you in, if you're looking at the S&P for 6 Weeks, that means the start date was Monday, Feb 27 when the S&P opened at 4,012.32, and the close price of Friday, April 7, 6 business weeks...

You are often inclined to "move the goalposts"...
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my post is time stamped from March 6th...stick to science!! Even though your scenario gives me one less week but an extra 50 points. Whether we close higher than 4055 on April 10th which would be 6 weeks from the March 6th post remains to be seen. I'm flattered that because I'm right so often you get your jollys on me maybe being wrong lol!!! It's tough being on top.....at least I didn't tell UR PARTNER to buy EL!! LOL I don't have trading positions that go 6 weeks anyway, but it would be good for managed retirement funds that we both have. But it seems you would rather take a loss to see me wrong...strange!! oHHH WELL.... C'est la vie
Bon chance mon Amis!!!!! And Amadans!!
 
@movetheboat - In the interest of Fairness, how about an error bar of +/- 80 pts (~2%)?”, so 3975 - 4235? Need to establish something beyond noise?

It may avoid a Shakespearean “Much Ado About Nothing”…
 
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