Spot on mate, seen a lot of your posts early on and agree. This year was always going to be a year of liquidity. It's a hard one because there is talk of interest rates going down in the future but can it be trusted?
A lot of people have lost a lot of money and it will get a lot worse. It almost feels worse than the 2008 financial crisis.
IMHO the present is simply the consequence of the past. What we are seeing today is the result of what was done in 2008. What will happen next will be the result of actions taken today. Closing banks closes liquidity spigots, enabling liquidity to continue to pour out of those spigots remaining. Overall liquidity will decline, but those spigots most essential to the heart of the financial oligarchy will be the last to experience any reduction in flow. The megabanks like JP Morgan, Citi, and their ilk will be where money continues to circulate until there is no money to circulate.
Edit: I just learned Jim Cramer has stated that JP Morgan is a fortress. Based on Jim Cramer's near 100% failure rate, I have to revise my comment regarding JP Morgan, and now expect it's imminent collapse. The basic premise that liquidity will continue to remain primarily available to the tip of the pyramidal hierarchy of finance is sound, but such wealth is entirely mobile, and can simply be moved without any of us knowing it occurred.
Anything Jim Cramer recommends is doomed. I apologize for any confusion created by my not knowing Jim Cramer advocated JP Morgan.
Cramer does seem like the ultimate contrarian investment. Whatever he said, go against it.
The GFC was a bank run but by banks running to be made good on their collateral.
You are right, this started in 2008. We have been in deflationary money since then. The financial system has been starved as balance sheet constraint arose.
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The yield curve is screaming that interest rates will be heading down in the future.
When the 3 month is 100 basis points above the 10-Y, that doesnt bode well for the idea that things will be getting beter.
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