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Sunday night financial system announcement?


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During the 2008 financial crisis there was a pattern of big financial announcements on a Sunday night.

 

We had the same thinking last Sunday, with the US offering massive stimulus.

 

Could there be another announcement this Sunday night?  If so, any idea what?

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36 minutes ago, stop_the_craziness said:

Closing more stock markets completely?

I hadn't actually thought of that, good call.

 

I think people in the financial need have been calling for this.

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Hard to call this one. Because the closing of one market only transfers the selling/hedging to another market, I expect TPTB to resist this until the fund management industry and its clients are in a state of absolute desperation. They will do anything to make the pain stop.

On the other hand, the structure of the market is completely broken. Market makers and algos stepping back. The entire ETF construct is an illusion of fake liquidity. Some very significant ETFs are already experiencing tracking failures. Market closure could happen sooner than we think.

So yes, I fully expect a Sunday night market closure event that may have to be international in scope. In this environment, If you can't hold it, you don't own it.

 

Edited by 50sQuiff
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3 hours ago, 50sQuiff said:

Hard to call this one. Because the closing of one market only transfers the selling/hedging to another market, I expect TPTB to resist this until the fund management industry and its clients are in a state of absolute desperation. They will do anything to make the pain stop.

On the other hand, the structure of the market is completely broken. Market makers and algos stepping back. The entire ETF construct is an illusion of fake liquidity. Some very significant ETFs are already experiencing tracking failures. Market closure could happen sooner than we think.

So yes, I fully expect a Sunday night market closure event that may have to be international in scope. In this environment, If you can't hold it, you don't own it.

 

“It’s easier to imagine the end of the world than the end of capitalism”.

Capital controls is the other unthinkable to look out for over the coming weeks. 

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3 hours ago, papag said:

Heard the EU are furious over the state aid announced yesterday in the UK , they say we still have to follow the rules until Jan maybe it will be something to do with that.

 

Lol. Did you read that on Facebook?

”some of my friends will copy and paste this into there status, most won’t. A mate of mine works for the EU and he said...”

Shared by Blitz Spirit Britain and 4 others. 

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18 minutes ago, Bear Goggles said:

“It’s easier to imagine the end of the world than the end of capitalism”.

Capital controls is the other unthinkable to look out for over the coming weeks. 

And indeed adding currency-valuation to the remit of the MPC 

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3 hours ago, 50sQuiff said:

Hard to call this one. Because the closing of one market only transfers the selling/hedging to another market, I expect TPTB to resist this until the fund management industry and its clients are in a state of absolute desperation. They will do anything to make the pain stop.

On the other hand, the structure of the market is completely broken. Market makers and algos stepping back. The entire ETF construct is an illusion of fake liquidity. Some very significant ETFs are already experiencing tracking failures. Market closure could happen sooner than we think.

So yes, I fully expect a Sunday night market closure event that may have to be international in scope. In this environment, If you can't hold it, you don't own it.

 

do you mean own funds that hold actual assets and not derivatives?

 

or something you can lock up in a box at home? (not your M.I.L.)

Edited by Si1
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3 minutes ago, Si1 said:

do you mean own funds that hold actual assets and not derivateives?

 

or something you can lock up in a box at home? (not your M.I.L.)

I think Jim Rickards puts it well, when he says that when the markets close, public equity will become private equity. You'll still own it, but you have no liquidity.

I'm alluding to something more "elemental" ?

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7 minutes ago, 50sQuiff said:

I think Jim Rickards puts it well, when he says that when the markets close, public equity will become private equity. You'll still own it, but you have no liquidity.

I'm alluding to something more "elemental" ?

Like no market. A bit like a Neil Woodford fund holding on acid....

Edited by Si1
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6 hours ago, papag said:

Heard the EU are furious over the state aid announced yesterday in the UK , they say we still have to follow the rules until Jan maybe it will be something to do with that.

 

I think the EU are unhappy its just going to go to retail, leisure and hospitality with no help for offices or industrial or manufacturing premises.

Tesco pay £700 million annually in business rates - and they won't have to pay a penny now for at least a year. So its essentially £700 million of state aid to a company which is perhaps less badly hit than other firms. Same for Asda, Sainsburys etc etc.

That's £700 million taken away from social care for the elderly when it is needed - from a company that perhaps at present doesn't require it as much as some other firms?

You can see why the EU might have issues - as might many Brits struggling to buy toilet rolls and floor wipes!

https://www.theguardian.com/business/2019/apr/30/tesco-seeks-online-sales-tax-to-fund-business-rate-cuts

Edited by MARTINX9
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13 hours ago, Bear Goggles said:

Lol. Did you read that on Facebook?

”some of my friends will copy and paste this into there status, most won’t. A mate of mine works for the EU and he said...”

Shared by Blitz Spirit Britain and 4 others. 

:D

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17 hours ago, 50sQuiff said:

 

On the other hand, the structure of the market is completely broken. Market makers and algos stepping back. The entire ETF construct is an illusion of fake liquidity. Some very significant ETFs are already experiencing tracking failures. Market closure could happen sooner than we think.

Short selling and algo trading are often defended as providing liquidity. This is just an illusion - there is no evidence for this. All it does it increase volatility. Regulators have been too timid to act on this. 

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19 hours ago, papag said:

Heard the EU are furious over the state aid announced yesterday in the UK , they say we still have to follow the rules until Jan maybe it will be something to do with that.

 

****** em , 

The nations, not so blest as thee,
Must, in their turns, to tyrants fall;
While thou shalt flourish great and free,
The dread and envy of them all.
"Rule, Britannia! rule the waves:
"Britons never will be slaves."

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16 hours ago, Bear Goggles said:

Lol. Did you read that on Facebook?

”some of my friends will copy and paste this into there status, most won’t. A mate of mine works for the EU and he said...”

Shared by Blitz Spirit Britain and 4 others. 

Nope on the Sky News chat program which is usually garbage imo  , the post request was 'What do you think the Sunday night announcement will be' ?  so i contributed so sorry for that but i assumed that's what forums are for. If some of your friends take this as fact from a house price forum find that very strange indeed how old are they 15/ 16.  I don't do facebook apart from sport occasionally , where do where do you get your factual  News from in this day and age  that you can trust the BBC  :)

 

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5 hours ago, papag said:

Nope on the Sky News chat program which is usually garbage imo  , the post request was 'What do you think the Sunday night announcement will be' ?  so i contributed so sorry for that but i assumed that's what forums are for. If some of your friends take this as fact from a house price forum find that very strange indeed how old are they 15/ 16.  I don't do facebook apart from sport occasionally , where do where do you get your factual  News from in this day and age  that you can trust the BBC  :)

 

Sorry, I couldn’t resist. No hard feelings :)

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On 21/03/2020 at 21:59, MARTINX9 said:

I think the EU are unhappy its just going to go to retail, leisure and hospitality with no help for offices or industrial or manufacturing premises.

Tesco pay £700 million annually in business rates - and they won't have to pay a penny now for at least a year. So its essentially £700 million of state aid to a company which is perhaps less badly hit than other firms. Same for Asda, Sainsburys etc etc.

That's £700 million taken away from social care for the elderly when it is needed - from a company that perhaps at present doesn't require it as much as some other firms?

You can see why the EU might have issues - as might many Brits struggling to buy toilet rolls and floor wipes!

https://www.theguardian.com/business/2019/apr/30/tesco-seeks-online-sales-tax-to-fund-business-rate-cuts

exactly 

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8 minutes ago, reddog said:

Looks like no big announcement, although markets are apparently down because congress has not agreed a $4 trillion bailout yet.

 

Let's see what happens next Sunday.

That is literally and metaphorically a life time away.

Just think back to last Monday...

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  • 415 Brexit, House prices and Summer 2020

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