Repo Market fails, Fed creates trillions, Stock Market soars, Gold collapses?
For my 1st post using the Steemleo interface, charts and macroeconomic stories I'm following:
1.) Wilshire 5000, the entire US stock market, 20+ year logarithmic chart:
- when the economy was booming in the early 2000s it hit 15,000
- 2008/9 banking crisis saw lows around 7,500
- currently over 30,000 and rising
Adding labels of some market drivers:
Is the economy really twice as big now as it was during the recent boom years, and bubbles? As we enter another major banking crisis, is the economy really 4 times as big as it was during the last banking crisis?
Are constant new all-time highs a sign of health? Should we recall that Weimar Germany and Zimbabwe stock markets were doing the same thing in the months and years before their utter collapses?
2.) The Fed is monetizing $75 Billion in debt every night to keep the repo market from imploding:
This is unprecedented, there is no permanent solution in sight, and the problem only appears to be getting worse. But remember: Do NOT call it "QE4" (the Fed insists that this isn't admission of failure and the economy isn't headed for another crash).3.) Worst week in years for gold:
Traditionally, gold does well in times of economic crisis. In an economy that makes sense, gold should do incredibly well during times of quantitative easing / money printing / treasury repurchasing / monetizing debt.
While it's true the gold price is heavily manipulated by the big banks, at some point the collapsing economy and monetary inflation will be reflected in the precious metals prices - not just the stock market.
Stay tuned for more analysis and financial charts, and check out steemleo.com for an alternate steem blockchain front end!