(Zero Hedge) For those hoping that the dollar shortage and overnight funding crunch would ease on the third day after the G/C repo rate exploded as high as 10%, we have bad news: it has not.
Economy
Major Red Flag: The Fed Shocks Everyone With An Emergency Intervention In The Repo Market For The First Time Since 2008
(Michael Snyder) For the very first time since the last financial crisis, the Federal Reserve has been forced to conduct an emergency intervention in the repo market. I know that a lot of people out there don’t know what the repo market is or how it works, and so let me start out with a very basic analogy that may help people understand what we are facing.
Economy News: Liquidity Shortage Getting Worse: Fed’s Repo Oversubscribed As Funding Demand Soars 50% Overnight
(Zero Hedge) 20 minutes after today’s repo operation began, it concluded and there was some bad news in it: as we feared, yesterday’s take up of the Fed’s repo operation which peaked at $53.2 billion has expanded substantially, and according to the Fed, today there was a whopping $80.05BN in bids submitted, an increase of $27 billion, or 50% more than yesterday.
China’s Xi: “I Can’t Believe What President Trump Says”
(Zero Hedge) With equity futures gradually rolling over overnight, there was the obligatory dose of trade war optimism in this morning’s news flow, with Trump reiterating that China wants to talk, while China was said to be hopeful the US can create conditions for trade talks; this was followed by a CCTV report according to which U.S. delegates said they hope U.S.-China trade talks can achieve progress and reach a deal as soon as possible, while China’s premier Li was quoted as saying that China and US should find solutions to disputes based on consensus reached by leaders of the two nations, adding that “China treats domestic, foreign companies fairly” and “puts more focus on intellectual property protection”, noting that “companies including U.S. firms are welcome to increase investment in China.”
2 Letters; $20 Billion Lost
(Adventures in Capitalism) Over the past few months, we’ve learned a lot about the psyche of the typical Ponzi Sector investor.
“Big Short” Investor Michael Burry Explains How Index Funds Will Trigger The Next Crash
(Zero Hedge) After years of radio silence, Dr. Michael Burry – the small-time stockpicker who rose to fame for his bets against subprime mortgage bonds featured in the book (and later film) “the Big Short” – is once again doing the media rounds, talking about his latest equity plays and sharing his thoughts about the next big market blowups.
28 Signs Of Economic Doom As Pivotal Month Of September Begins
(Michael Snyder) Since the end of the last recession, the outlook for the U.S. economy has never been as dire as it is right now. Everywhere you look, economic red flags are popping up, and the mainstream media is suddenly full of stories about “the coming recession”.
An Indicator With A 100% Perfect Track Record Of Predicting Recessions Says That Another One Is Coming
(Michael Snyder) You can believe that we will somehow beat the odds this time if you want, but history is completely against you. One of the biggest reasons why there is so much anxiety on Wall Street right now is because of how the yield curve is behaving.
US Slaps New Tariffs On China; One Minute Later China Retaliates
(Zero Hedge) The biggest reason for last week’s torrid stock market rally was rekindled “optimism” that the escalating trade war between the US and China may be on the verge of another ceasefire following phone conversations, fake as they may have been, between the US and Chinese side. This translated into speculation that a new round of tariffs increases slated for this weekend may not take place or be delayed.
When It Comes To The U.S. Economy, Everyone Wants To Pin The Credit Or The Blame On Donald Trump
(Michael Snyder) No matter what happens with the U.S. economy, most of the credit or the blame is going to go to President Trump. And now that the U.S. economy appears to be headed for big trouble, the mainstream media is salivating over what this could mean for Trump’s chances of winning in 2020.
“This Is The Worse I’ve Seen It” – Recession Imminent As RV Industry Crashes
(Zero Hedge) To elaborate more on our July report titled “Trade War Chaos: Trump’s Tariffs Crash American RV Industry,” it seems the RV industry continues to flash a recessionary warning light.
11 Reasons Why So Many Experts Believe That A US Economic Crisis Is Imminent
(Michael Snyder) The numbers are telling us that we have never been closer to the next recession than we are right now. The storm clouds that were gathering on the horizon are now directly above us, and suddenly the mainstream media is filled with stories about when the next recession will begin and the effect that this may have on President Trump’s chances of winning in 2020.
Peter Schiff: A “Great Recession” Will Hit Jeopardizing Trump’s Reelection Efforts
(Marc Salvo) Economic analyst and gold bug Peter Schiff is warning that another “Great Recession” will grip the United States and that when it does, it is going to jeopardize President Donald Trump’s reelection efforts.
12 Reasons Why Negative Rates Will Devastate The World
(Zero Hedge) It has been a thesis over 20 years in the making, but with every passing day, SocGen’s Albert Edwards – who first coined the term “Ice Age” to describe the state of the world in which every debt issue ends up with a negative yield as capital markets and economies collapse into a deflationary singularity – is that much closer to having the victory lap of a lifetime. Although, we doubt he is happy about it.
Opening the Door for Censorship: New Trademark Enforcement Mechanisms Added for Top-Level Domains
(Mitch Stoltz) With so much dissatisfaction over how companies like Facebook and YouTube moderate user speech, you might think that the groups that run the Internet’s infrastructure would want to stay far away from the speech-policing business. Sadly, two groups that control an important piece of the Internet’s infrastructure have decided to jump right in.