Credit deflation and the reflation cycle to come (part 2)

[MvR]

1 hour ago, DurhamBorn said:

Iv finally re-entered the Gold miner space,bought some GDXJ ,a lot actually 

Hopefully a decent entry.. Gold is oversold short term, and testing a couple of medium term trendlines.

[BearyBear]

4 minutes ago, Majorpain said:

Italy.  It was wobbling to begin with, now its shut down for 2+ Weeks.

Euro means so it cant print/devalue its way out of the mess either, and that was before the corona virus hit!  

Yes, funny because my sister lives in Italy so she keeps me updated...

btw. I remember going there in 1993, it was a super rich country back then, everyone was buying me ice creams, pizzas, whatever I wanted! I was living in Rimini for the whole summer and you could literally have one big meal for free almost every day (eat as much as you can!). Hotels were cooking food outside and almost forcing you to eat it if you passed by. With wine of course. People were driving fancy cars, there were well dressed ladies around, everyone was smiling and having fun.

I went there again 25 years later... a completely different world. Without Brexit, Italians would have probably outnumbered Poles by now. Old people are saying that euro destroyed their economy... I'm actually surprised they didn't leave first given the anti - EU mood that I've experienced (I speak Italian btw).

So yes, Italy is in big troubles, it was long before that Cerveza Virus.

[kibuc]

42 minutes ago, JMD said:

thanks Kibuc, is Alexco still one of your fav. (best one?) silver miners?

I'm still holding it. I keep 3 holdings because of their repricing potential agnostic to metal prices: Alexco (silver), Fortuna (gold/silver) and Minera Alamos (gold). Each has a transformative project coming online soon and enough cash to see it delivered. It's that latter concern that made me drop Corvus and Silvercrest, although with heavy heart - I think raising funds might become difficult.

I also keep one gold and one silver play where I see strong leverage to metal prices: Harmony and Impact. I'd rather swap HMY for a smaller cap though if I found a suitable one. 

[BearyBear]

https://www.newyorkfed.org/markets/opolicy/operating_policy_200312a

Today, March 12, 2020, the Desk will offer $500 billion in a three-month repo operation at 1:30 pm ET that will settle on March 13, 2020. 

Tomorrow, the Desk will further offer $500 billion in a three-month repo operation and $500 billion in a one-month repo operation for same day settlement. 

Three-month and one-month repo operations for $500 billion will be offered on a weekly basis for the remainder of the monthly schedule. 

The Desk will continue to offer at least $175 billion in daily overnight repo operations and at least $45 billion in two-week term repo operations twice per week over this period.

 

Perfect timing @DurhamBorn   Gold & Silver up!

[Bobthebuilder]

4 minutes ago, BearyBear said:

it was long before that Cerveza Virus

Piwo surely?

[nirvana]

@BearyBear You're a smart cookie, I've decided you're my financial advisor from now on in, please PM me details of your trades as and when, you're on 5% commission 

[BearyBear]

2 minutes ago, confused said:

@BearyBear You're a smart cookie, I've decided you're my financial advisor from now on in, please PM me details of your trades as and when, you're on 5% commission 

Lol  

OK, SP500 long. Quick!

[nirvana]

1 minute ago, BearyBear said:

Lol  

OK, SP500 long. Quick!

ooh yes, missed the dead cat bounce there DOW +400 

2 minutes ago, Tdog said:

So please explain what this means.

you need to spend 10 years watching charts and blow your accounts at least twice 

[BearyBear]

1 minute ago, Tdog said:

So please explain what this means.

Gold was making higher highs, GDX was making lower highs. To me this was clearly showing the miners are struggling, I'd expect them to make higher highs along with Gold...

4 minutes ago, confused said:

you need to spend 10 years watching charts and blow your accounts at least twice 

Yes, that's me...

[Noallegiance]

13 minutes ago, BearyBear said:

https://www.newyorkfed.org/markets/opolicy/operating_policy_200312a

Today, March 12, 2020, the Desk will offer $500 billion in a three-month repo operation at 1:30 pm ET that will settle on March 13, 2020. 

Tomorrow, the Desk will further offer $500 billion in a three-month repo operation and $500 billion in a one-month repo operation for same day settlement. 

Three-month and one-month repo operations for $500 billion will be offered on a weekly basis for the remainder of the monthly schedule. 

The Desk will continue to offer at least $175 billion in daily overnight repo operations and at least $45 billion in two-week term repo operations twice per week over this period.

 

Perfect timing @DurhamBorn   Gold & Silver up!

I hope I speak for many when I say holy fucking shit.

[BearyBear]

4 minutes ago, Noallegiance said:

I hope I speak for many when I say holy fucking shit.

To call it PANIC is not enough... 

[Loki]

5 minutes ago, Noallegiance said:

I hope I speak for many when I say holy fucking shit.

You speak for me!

[nirvana]

4 minutes ago, BearyBear said:

To call it PANIC is not enough... 

is the derivatives market imploding yet??? 

And who thinks the repos will be oversubscribed?? 

[Noallegiance]

$1tr in two days.

$1tr.

A trillion dollars.

 

[Loki]

1 minute ago, Noallegiance said:

$1tr in two days.

$1tr.

A trillion dollars.

 

A trillion here a trillion there, pretty soon you're dealing with big numbers!

[nirvana]

Just now, Loki said:

A trillion here a trillion there, pretty soon you're dealing with big numbers!

that's why I mentioned a QUADRILLION earlier, the system is absolutely off it's saggy tits on smacK!!!!

[MvR]

13 minutes ago, BearyBear said:

Yes, that's me...

 #metoo

[onlyme]

57 minutes ago, onlyme said:

Sure there is some stupefying money printing they could use at this at any point I suppose, by directly buying in the market with freshly printed money, if they do that then all bets are off.

Bad form to quote myself but LOL how soon was that. Sterling effort to protect the support line.

[Loki]

The 10 year Treasury yield has barely budged

[DurhamBorn]

1 hour ago, confused said:

I'm vaguely familar with what Volcker did, he raised interest rates to 20% drastically reducing the money supply!!! Ever since then the chumps have trashed the interest rates and printed trillions....

So you're asking for Powell to print QUADRILLIONS!!!??? 

He needs to print $20 trillion probably,but for a start we need $5 trillion.BOE needs to print £300billion for the government to spend now.They need to monetize all of it.The longer they wait,the more they will need to print.Once they monetize as much debt as they can they can then jump rates up to 2%,then creep them up.

[Democorruptcy]

5 minutes ago, Loki said:

The 10 year Treasury yield has barely budged

It's not enough, blip minor.

[Shamone]

37 minutes ago, confused said:

that's why I mentioned a QUADRILLION earlier, the system is absolutely off it's saggy tits on smacK!!!!

I remember no one really remarking when a billion became the new million. Now trillion is the norm. The system does seem to be truly fucked.

[Bricks & Mortar]

1 hour ago, DoINeedOne said:

@kibuc or anyone else have any views on Minera Alamos or Mako Mining 

I like Mako Mining.  They're one of the few shares I've held through this past week or so.

I'm not so good with analysing numbers though.  My non-numbers view is that they've got a nice little gold mine in the making that promises high grades and low extraction costs.  Mining has commenced, and their production plant is about half finished.  They hope to be producing by Q3.
I gather they're still exploring other areas of their plot, with good results.

Follow Akiba Leisman, the CEO, on Twitter

 

[Barnsey]

More QE in these 3 days than past FIVE YEARS!

[Noallegiance]

Seems the promise of $1tr+ within 48 hours was enough to boost the market for 30 minutes.

It must need more.

https://www.bbc.co.uk/news/topics/clyeyy8851qt/dow-jones-industrial-average