FedEx Warning / Repo Rate Spikes . . . .

[errolanderson]

FedEx is warning of a sharp global slowdown that is now rippling into the U.S. U.S. CEO's not impressed with Trump trade war and damage to the economy. Shares of FedEx plunged 14% today on weaker-than-expected earnings and revenue. AT&T also shared similar warnings . . . .

U.S. repo rate rocketed higher this week (Repo rate is the rate central banks charge commercial lenders). U.S. Fed apparently has injected $128 billion into markets this week in-response. Beginning of QE4 money printing? This appears to be a possible credit liquidity issue . . . and illiquid credit markets triggered the 2008 financial crisis.

Wall Street not passing the smell test right now (IMO) . . . .

[sk_wheatking]

So, what are you trying to say?

[bucket]

So, what are you trying to say?

The usual ....the sky is falling...

[sk_wheatking]

The usual ....the sky is falling...

Can't be, he always has such a positive outlook!

[Daylate]

That there is going to be a shift of who makes the money in US. If US drops interest rate, i see the big machine takin off in manufacturing. Keep in mind im retarded and have operated my farm on knee jerk gut feelings my whole life.

[flea beetle]

The usual ....the sky is falling...

My gut tells me Errol has been right all these years, it is just hard to predict the exact timing of this inevitable meltdown that is coming when governments are doing everything in their power to hide what is really going on/kick the can down the road.

[Daylate]

With everything going on in the world, if it doesn't spur some sort of a war, then its safe to say nothing will and we will live in a world that has no appetite for a global war anymore.

[farmaholic]

What happens when an economy grows to a size that the velocity of available money flow can't supply/service?

"Savings" as an available money supply that aren't "moving" aren't circulating in the economy.

So money "printing/creation" at times might be warranted?

But I'm thinking you guys don't think that has been the case in the last 10-12 yesrs?

"Sometimes its best to remain silent and be thought a fool, than speak and remove all doubt...

[errolanderson]

Central bank power is now totally drained (IMO). And cutting rates further will do nothing to stimulate the economy (contrary to Trump talk). In fact, cutting rates just makes the situation worse for the next generation having to face this mess.

Now we enter the world of negative rates . . . how does that hang together? Is that a sign that all is well in global economies? Nothing is wrong with markets, even though global commodities continue to trend lower. Equities are propped up on-a-stick right now (IMO) on central bank manipulation. Corporate buybacks have been key stock market support, not fresh investment.

The repo rate spike this week is a significant warning to financial markets. And the Fed dumping market suddenly is also a sign of problems in liquidity and credit markets.

Can central banks continue their gig to support equity markets? They have mastered this a very long time . . . . But I am a believer that 'true economics always rules', not central bank manipulation.

[bucket]

What happens if the US crop doesn't meet current expectations...there is some wealth to be created there...