When “Cash Becomes King” . . . .

[errolanderson]

Credit Suisse now issuing heavy caution of increased risk of sharp equity market correction . . . soon.

Repo (short-term) bank leading fire that the Fed is battling nightly with massive capital injections is not being controlled. Bank liquidity concerns are forefront.

Fed is now massively printing money via repo emergency injection and according to Credit Suisse, Fed may officially call it QE4 within the month. Fed rate cuts no longer have any impact (IMO). China now experiencing incoming bond market defaults.

Dennis Gartman parting words in his last newsletter . . . Get into cash.

Buffet apparently holding a large cash position.

Demand for equity market put options apparently surging as a protective hedge for large wealth positions.

Is this the big one or not? Have been watching this central bank manipulated financial situation explode to insane levels for several years now. But even the big boys are now starting to bark . . . .

One thing for sure, The Fed has built “one hell of a deck-of-cards” since the financial crisis of 2008. I’m concerned, your thoughts? . . . .

[malleefarmer]

Not answering your question but old saying ag first into recession first out this gonna put downward pressure on grain.

And stating the obvious grain bought on credit with LCs poorer counties have to be able to pay for it.

Enter stage right Russia with all sorts of deals for impoverished countries/buying agencies

Hopefully not to of topic mate

Geez I’d love to see a combine drop 20% in price overnight yep I’m in La La land

[SASKFARMER]

Canada is in a recession right now.

Slowest Xmas will be this year for retailers.

Go to a dealership and see how many are working sitting in there office or wondering what day the layoffs are coming.

Farmers are in a tight pickle you can see it.

Business is also having issues.

Gov can't keep going into debt. Canada has hit the Trillion.

[15444]

The big one?

Wake me up when the looting starts...

[errolanderson]

Personally, don't see any U.S. / China deal by Trump's Dec 15th deadline. This has turned into a staring match.

Some U.S. analysts say button-up your long positions, whether grains to oil to equities. There is risk of a broad-based commodity market pullback should nothing happen. But then again, any positive movement by Saturday nite would give markets a kick higher . . . but rallies won't hold regardless (IMO).

[biglentil]

The Fed has unfettered access to the printing press. Imagine you are playing the boardgame monopoly and everytime someone runs outa cash to pay debt the central banker hands em another wad of cash. The game would carry on and on and on. In the last 50 years the dollar has lost 95% of its purchasing power, but the game keeps on chuggin along.

[sumdumguy]

Errol, you use the word, “cash”. What is cash in today’s world? Cash in hand, money in the bank, liquid collateral?

[AlbertaFarmer5]

Errol, you use the word, “cash”. What is cash in today’s world? Cash in hand, money in the bank, liquid collateral?

And in what currency?

[errolanderson]

Errol, you use the word, “cash”. What is cash in today’s world? Cash in hand, money in the bank, liquid collateral?

Available liquidity whether cash in-hand, in cash accounts. Asset devaluation strengthens the position of cash. Availability to purchase assets for pennies on the dollar as this financial crisis takes deeper hold into 2020. This is already occurring.

Debt no longer generates growth in many industries, it has become a heavy liability, despite cheap money. Many promote gold. But the weakness of gold (IMO), deflation is its enemy. Gold thrives during inflationary times. Gold struggles to maintain rallies in a deflationary environment.

This will be very hard on the consumer debt-driven banking industry. Fallout already in-progress . . .

My two-bites . . . .

[AlbertaFarmer5]

Buffet has indeed been sitting in cash, and is missing out on a massive bull run. Far underperfromed the broader market:
https://www.cnbc.com/2019/11/01/even-obvious-way-for-buffett-to-solve-big-cash-problem-is-a-puzzle.html https://www.cnbc.com/2019/11/01/even-obvious-way-for-buffett-to-solve-big-cash-problem-is-a-puzzle.html
https://economictimes.indiatimes.com/markets/stocks/news/warren-buffetts-worst-year-since-2009-splits-investors/articleshow/71856808.cms?from=mdr https://economictimes.indiatimes.com/markets/stocks/news/warren-buffetts-worst-year-since-2009-splits-investors/articleshow/71856808.cms?from=mdr

Errol, I do appreciate you bringing actual economic information and starting the discussions here. It is such a pleasant change from the usual global warming Trolls. But, have you taken the time to check back through some of your old posts, to see how your track record has been for forecasting deflation, and stock market collapse? I just went as far as 2012, and didn't see any optimism all the way. In fact, in early 2012, with the DJIA at way less than half of today's value you were still warning about a stock market crash and related deflation. Climbing a wall of worry has never seemed as applicable as it does in this market, but relentlessly climb is all it does.