To download the podcast – Right mouse click here (12:00PM, 37:40 duration)
-A preface on my blog’s primary purpose and its guiding philosophy. A discussion on why we have been more accurate over the longer term.
–Federal Reserve takes additional actions to provide up to $2.3 trillion in loans to support the economy
-An in depth analysis of the seven latest Fed initiatives. The Fed is quickly becoming the primary dealer and lender in the corporate and municipal debt sectors.
–Based on the amount of corporate debt outstanding and the potential drops in GDP and economic activity, I would have to conclude that the Primary and Secondary Corporate Credit Facilities will have to be eventually enlarged by at least 100-200%.
-There is little reason to believe that the $500 billion earmarked for short-term municipal lending via the Fed’s Municipal Liquidity Facility will be adequate. A bipartisan governor committee is asking the Federal government to come up with another $500 billion to bailout the states hardest hit by the manufactured coronavirus crisis.
-The level of Fed asset purchases continues to rise as the balance sheet crosses the $6 trillion threshold.
Tentative Schedule of Treasury Securities Operations | 4/13/2020 – 4/17/2020
Tentative Schedule of FedTrade Agency Mortgage-Backed Securities (MBS) Operations for the period from April 13, 2020 to April 17, 2020.
–S&P 500 technicals discussed; A look at the next point of resistance on the S&P 500 futures. I suspect that this will be tested, but will initially fail. When that occurs, I find support back at the 200 week mva.
-Joel Skousen provides an in depth analysis on the wild exaggeration of the coronavirus crisis and the number of actual cases. Here is a pdf of the latest World Affairs Brief for reference.
-I agree that the US dollar will eventually find its demise as the global reserve currency, but we need to see that its collapse will be from strength, not weakness. Anyone predicting the date the USD gives up the ghost is foolish. I receive many emails regarding this matter. I was forwarded this CBS News article from a listener titled United Nations Proposes New “Global Currency”, and thought was very telling until I saw that it was dated September 9, 2009.
-The reason why we own gold.