PhD. Swing trader in index options, Fed watcher. Tweets reflect my personal observations. No investment advice. No medical advice.fed.tips Texas, USAJoined January 2014
This is only the 2nd inning, folks.
Using the 2008 analogy, right now is the March weekend when Bear Sterns collapsed, and the Fed had to step in to intervene.
But primary dealers are okay. GSIBs are okay. There will be NO monday-premarket 75bps emergency rate cut this time.
The unintended consequence of current BTFP setup is that it incentivize people to start bank runs to push up the value of their TQQQ/SPXL positions.
BAC is sitting on $~1T of MBS. I am sure wallstreetbet folks are eager to throw it under the bus any time now. /s
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