Another "The Only Thing That Really Matters" Update

As I keep repeating and pointed out in the last update regarding this. The latest below should worry anyone with at least a modicum grasp of reality. To wit:

If you’ve been wondering why, how all of the sudden, these “markets” are going haywire in differing assets, well, as I’ve repeated ad nauseam – without the Fed turning the printing presses back on, it all falls apart.

Now a lot of you will say “Well Mark, you’ve been saying this for a long time and nothing’s happened prior, as a matter of fact, markets have been going up, so why now?” Easy…

Because there was still a lot of liquidity (aka prior printed free money) to be drained before it got to zero. You’re now there. Hint: For all intents and purposes the chart above now shows the equivalent regarding “liquidity” has hit zero. (e.g., 1.559 is close enough for my horseshoes and hand-grenades math examples)

To repeat from the prior note…

If the Fed does not immediately halt their QT operations (quantitative tightening). The entire financial system is at risk of breaking. The above chart shows just how little (it’s close enough to imply the term Zero) liquidity there is to allow the system to function as everyone believes or is intended.

and another…

From my perspective: Without the Fed reasserting itself like it has prior (aka going back to doing everything they said they no longer need to) Christmas might not turn out like most are currently surmising.

You are now at the half way point of November with the trailing half still on deck before Dec 1st. the Fed’s so-called “stop date.”

This “market” is showing all the signs it may not make it till then.

As always we shall see.

Note: I’ve had a few inquiries since first posting the above as to “This isn’t the only source of liquidity, is it?” No, it’s not. There are other programs that work in tandem with banks and others. However, it was this Federal Reserve operation, in particular, implemented (aka printing more $Trillions) with gusto in 2021 that was the saving grace for the “markets” which were ~~collapsing~~ locking up and on the verge of crisis rivaling 2008. Without the excess printing afforded to this facility, again, in particular, everything that caused panic in 2008 and 2021 is squarely back on the table. You’re now starting to see the initial stresses materialize more forcefully as this facility has reached these levels. Now, all that so called QE or “balance sheet expansion” has been unwound via QT (quantitative tightening). My prognosis is these “markets” can not stand on their own without it, where the Fed will need to go back on everything they’ve insinuated when reducing (aka “We’ve got this!) and reverse course with gusto (aka re-implement printing $).

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