Have Mercy

The U.N. Asks the Fed to Stop QT & Credit Suisse Is on the Brink

People across the world are feeling the pain of the Fed’s poor monetary policy.

On Monday afternoon, both Reuters and The Wall Street Journal reported that a U.N. agency has warned about the risk of a “monetary-policy induced global recession” that would have particularly dire consequences for developing countries.

Jim Bianco biancoresearch.eth @biancoresearch

No this is not the onion. Posted on the WSJ website 15 minutes ago. The whining/demands that the Fed pivot is now getting out of control.

wsj.comU.N. Calls On Fed, Other Central Banks to Halt Interest-Rate IncreasesThe Fed’s rate increases so far this year would reduce poor countries’ economic output by $360 billion over three years, and that further policy tightening would do additional harm, a U.N. agency warns.

This is the first I’ve ever heard of the U.N. basically asking the Fed and other major central banks to have mercy.

Plus, we have newsletter “favorite” Paul Krugman suggesting that the Fed is “braking too hard” with its quantitative tightening.

New York Times Opinion @nytopinion

“I’m hearing growing buzz,” @paulkrugman writes, “that the Federal Reserve — which clearly kept its foot on the gas too long last year — is now braking too hard in compensation. And the risks of an accident are growing.”

nyti.msOpinion | Is the Fed Braking Too Hard?It may be raising interest rates too far, too fast.

Seems like the powers that be are setting the stage for a Fed…

Hpot @hpot1

@biancoresearch

If the Fed pivots, higher inflation may become the new normal. And to add insult to injury for those who will suffer most from higher inflation - the 50% or so of Americans who don’t have money invested in the stock market - financial markets will probably go buck wild.

Totally healthy stuff.

Credit Suisse on the Brink?

FXHedge @Fxhedgers

CREDIBLE SOURCE SAYS A MAJOR INTERNATIONAL INVESTMENT BANK ON THE BRINK -ABC AUSTRALIA

FXHedge @Fxhedgers

CREDIT SUISSE IS AT A 'CRITICAL MOMENT' AS BANK PREPARES FOR LATEST OVERHAUL, CEO SAYS

Credit Suisse’s executives are in talks with their major investors in efforts to reassure these investors that the investment bank is in good health.

Seems like the type of meeting you’d have to call if your bank was in good health. Totally.

Maybe the cure for Credit Suisse would be some cheap credit from the Fed. That always seems to make overleveraged banks “healthier.”

Credit Suisse’s only hope right now is the fact that Jim Cramer is bearish on them.

Jim Cramer @jimcramer

Credit Suisse--how the mighty have fallen... ouch

Wall Street Memes @wallstmemes

@jimcramer Credit Suisse headquarters rn

Ironically, the super crypto degenerate that blew up one of crypto’s biggest institutions was trained by the degenerates who are in the process of blowing up one of traditional finance’s biggest institutions. And he had some interesting perspective on Credit Suisse to share.

Zhu Su 🔺 @zhusu

When I interned at Credit Suisse in Tokyo/HK in 2007, stock price was over $70 Now, 14yrs later, it's $10 Yes there are signs of froth in equities, but there are also signs of great discernment and awareness Age of banks is already over, for those who have been watching https://t.co/YZ9NuLF5vu

So, to sum up, as the Fed and a major investment bank try to hold things together as this gigantic decades-in-the-making Ponzi blows up, major institutions from the U.N. to The New York Times are seemingly beginning to set the stage for a Fed pivot.

And just in case all of that wasn’t exciting enough for you, we may have the following to look forward to:

FXHedge @Fxhedgers

NORTH KOREA MISSILE APPEARS TO HAVE FLOWN OVER AND PAST JAPANESE TERRITORY –NHK

Because I’m a fan of bringing some levity to tragic situations, all that comes to mind in this moment are the words of the great John Stamos…

Best,

Frank

Twitter: @frankcorva

unusual_whales @unusual_whales

Morgan Stanley, $MS, says the US dollar surging is setting the stage for "something to break" in the financial system.