Tuesday 31 March 2020

The Greatest Depression: Keep Crying.

We haven't got a hope in hell. Let's start with global statistics: 700 trillion in OTC derivatives, 300 trillion in debt, of which 250 is in bonds.

Moving to the United States: 10 trillion in derivatives, another ten in corporate debt, with 16 trillion in government debt.

Thus far, The Fed's balance sheet is at 6 trillion spent while market losses are 7 trillion, with valuations down roughly 30%.

That's like using your finger to try and stem the Hoover Dam. What if we lose another 7 trillion in value? Remember that during The Great Depression stocks dropped 89%. There's no way that The Fed can even come close to printing its way out of this.

 

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