Monday, December 24, 2018

Who Is He Reassuring

Obviously the intended target of the tweet was Trump, but also what are they actually worried about?

US Treasury Secretary Steven Mnuchin has made calls to the heads of the country's six largest banks, a move to reassure investors after huge falls in US stocks.

Last week, US stocks suffered one of the worst weekly falls in a decade as an interest rate rise and US-China trade tensions rattled markets.

Mr Mnuchin said banks confirmed they had "ample liquidity" for operations.

That they can lend doesn't mean they will, though if the perpetual bailouts are being offered they might as well! Maybe not too late for Eschaton World Industries to borrow a billion or two.

What we have learned is that "we" never really know where all the leverage is in the economy until it is almost too late. I have some guesses but...don't know!