Margin Accounts at Brokers and Dealers EXPLODES As CMBX Remains 30.5% Below Pre-Covid Levels (What Money Printing CAN’T Fix)

Confounded Interest ^ | 12/05/2021 | Anthony B. Sanders

[Browns Ultra Fan]

As we are all painfully aware, The Federal Reserve went on a 2nd money printing spree to allegedly stave-off the economic impacts of the COVID outbreak in March 2020. The first money printing spree took place in late 2008 as The Fed tried to stave-off the economic impacts of the housing bubble burst of 2008 and the ensuing financial crisis.

But for now, we have this horrifying chart showing the exploding margin accounts at security brokers and dealers (not, not the Walter White-type dealers, but Wall Street dealers). Notice the 400% surge in M1 Money stock after COVID struck.

Of course, the soaring stock market is feeding the margin loop, encouraged by The Fed. Check out the Shiller Cyclically Adjusted Price Earnings (CAPE) ratio after The Fed’s M1 printing storm.

What can’t money printing fix? How about CMBS prices (or CMBX BBB- S6 prices … down 30.5% since just before COVID struck.

Let’s see if The Fed sucks the 400% growth back to zero.

[Browns Ultra Fan]

Powell and Biden create a massive bubble. Prayer for our economy!

[Vermont Lt]

One rule of the markets that seems to be reinforced over the years is the reversion to the mean.

[SaxxonWoods]

These people never say what should have been done instead.

We heard the same dire story in 2008. The only thing that happened was a recovery.

[mjp]

As we are all painfully aware, The Federal Reserve went on a 2nd money printing spree to allegedly stave-off the economic impacts of the COVID outbreak in March 2020.

United States Money Supply M1

INFLATION CITY

[Gen.Blather]

I’m in rural Florida and I’m starting to see the stations around me put bags over their pump handles. I was unloading my 15 gas cans and four diesel cans and the woman came out to tell me they only had “marine” gas. (That’s gas with no alcohol.) I said that’s what I needed and filled up $110 worth. (I keep 20 gallons on hand for my generator and used all of it plus some after Hurricane Michael.) I got diesel at a different station.

Virtually all of the present crises are government caused. Shutting down the ports as they did started a cascade in the supply lines. Killing small businesses hurt everybody. The small rural stations are usually gassed up by independents. I’m wondering how much of the problem is the number of small business owner/drivers who were put out of business.

If the government was trying to kill the American economy on purpose, what would they be doing differently from what they’re already doing?