“The FTX saga…is yet another signal that the COVID bubble is collapsing and at an accelerating pace.” (Page 2) “Last week saw the biggest liquidity injection into financial markets since 2021” (Page 4) “This is the only time in history in a top 20 drawdown for stocks where USTs during that drawdown for stocks performed WORSE than equities.” (Page 6) “In recent months, liquidity in the UST market has deteriorated further.  This recent development is

Key quotes of the interview:   Mr. X: Let’s start with the things I can say I feel reasonably confident in, and then we can work backward from there.  First, above everything else, I think it is critical to remember that all else equal, a lower USD amounts to a liquidity injection as a lower USD eases financial conditions. Second, I would note that investor positioning has been and remains very overweight the USD and

“If not for voters under age 30, this week WOULD have been a Red Wave” … “the Biden Student Loan Jubilee paid political dividends” (Page 2) Thoughts on BTC sell-off in the aftermath of the FTX blowup (Page 4) US government deficit forecast doubling at this low of real rates is really bullish for gold (Page 6) Signal that has only triggered 2x in the past 55 years just triggered, portends recession & then severe

The world is on the road to “hyperinflation” and could be heading towards its worst financial crisis since the second world war, according to Elliott Management… An “extraordinary” set of financial extremes that come as the era of cheap money draws to a close “[has] made possible a set of outcomes that would be at or beyond the boundaries of the entire post-WWII period”, it wrote in the letter, which was seen by the Financial

“How do companies lower wage costs?  They fire people…This is how services inflation gets solved.” (Page 2) “Wilson reiterated his prior view that inflation ‘will collapse – and when it does, earnings go down with it.’” (Page 4) “Treasury says it has not made any decision on UST buyback program yet” (Page 6) Monday’s Treasury Borrowing update pretty much ended any hope of a soft landing for the US economy (Page 7) “Coming BLS year-end

In interviews with 10 people who know Mr. Powell personally, including some who have been critical of him, a consistent prediction emerged: He does not want to go down in history as the man who squandered 40 years of price stability.-New York Times, 10/31/22 (via CS) Andrew Kreicher, a director at Wells Fargo, said liquidity in USTs has been about the worst he has seen over a sustained period recently. “There are so many systems