Negative Rates, here we go
Posted 25 March 2020 - 05:56 PM
Posted 25 March 2020 - 06:18 PM
are bank runs next?
Posted 25 March 2020 - 08:28 PM
There is already some of that going on. My wife is a banker. She has to order the money for her branch three days in advance. They have a guy going tomorrow who is going to take out $100,000 in cash and walk out the door with it. Ever since we went into manic mode, people have been withdrawing cash in far greater numbers than normal. In one of their branches last week, a guy showed up with an armed guard and withdrew $250,000. These people are NOT doing online transfers or wire transfers to other institutions. They are walking out the door with cash. Those are more extreme examples, but this has been happening in smaller numbers on a daily basis for the last two or three weeks. No, its not a panic, but they ARE doing it in far greater numbers than normal. She has been talking about this for two weeks.
Wait, there's more. They had, get this, several calls today from customers wanting to come by and pick up their money. That's right. These bumblebrains heard the news about the stimulus package, so they wanted to come by and pick up their free loans that would be forgiven. There are so many people like this out there that it is just plain scary. They don't bother to read or learn the details about anything. Now they can probably tell you every little detail about their favorite scumbag reality TV star, but they don't know anything about the stuff that matters......and they don't try to learn either. There is going to be so much fraud around this package of goodies that our government is dropping from the sky.......and you won't even hear about it until it is over. Loans that turn into grants. Federal unemployment compensation, on top of existing state compensation, that will make it EASY for some people to earn a good living for a while WITHOUT working. Oh yea, I know about the three senators objections to the writing of the bill where people will be able to earn $960.00 per week for not working. And the fix is what? The fix is to amend the bill so these people will only be paid up to 100% of their full time salary. Really? That is a fix? I realize that there is some real pain out there. You don't have to stray far from home to see that. We have shut the freakin' country down, even where there are no shelter in place orders. Its crazy. But, if you don't realize that there is going to be a ton of fraud out there when people can sit home on their butts and earn 100% of their pay (or more), then I would say.....hope you enjoy your reality TV.
Edited by Iblayz, 25 March 2020 - 08:33 PM.
Posted 25 March 2020 - 08:46 PM
Jeezusss guys...this is TEMPORARY.
Just shocked at the crazed Doom and Gloom I am seeing all around me....
This is worse than after 9/11....
SOX was actually in much worse shape BEFORE 9/11 that it is now AFTER the Corona Panic.
Thus far, I see nothing more than a severe panic driven correction.
The leaders of the economy still acting reasonably well with long term uptrends still intact.
If we do not make a long lasting bottom within the next 6-7 trading days, will maybe change my mind.
But right now, not seeing this massive depression so many seem to be forecasting.
When Gerald Celente pops up on ZeroHedge, you usually know you are close......
Posted 25 March 2020 - 09:11 PM
Posted 26 March 2020 - 08:29 AM
The doomsayers are getting this situation confused with the debt apocalypse, if it could be called that. This is when debt is so much that rates have to be deeply negative to afford debt service costs, so much so that there is no way to maintain the system as it stands. I don't see this as a point event, but the system is preparing for negative rates, by demonizing retrieving large amounts of cash, and eventually stopping the use of cash (why would you accept paying to hold money in the bank unless there is no alternative?). Europe is the test zone for these things. But this virus crisis is being associated with this debt issue by the doomsayers who seem to think of it coming overnight.