!
— Elon Musk (@elonmusk) September 29, 2023
It's a staggering reflection of how broken our financial system has become. When the Fed has to lose $723 million daily just to prevent a collapse, it's a clear indicator that we're just plastering over deep systemic cracks. It's high time we address the root issues instead of…
— Frank (@FrankChronicles) September 29, 2023
Translation:
"This could blow up the treasury market right when we're causing a global Dollar shortage & removing emergency bank liquidity.
But don't worry, we won't be able to do anything about it anyways because we're shutting down the government"
Sincerely,
– Jerome Powell https://t.co/t5QPeevvfh pic.twitter.com/NKpQ9vI82Y— Financelot (@FinanceLancelot) September 28, 2023
BREAKING: The number of bankruptcies in the US recorded year-over-year have increased for 13 straight months, per MarketWatch.
— unusual_whales (@unusual_whales) September 29, 2023
Headline just hit @business
“Credit Braces for More Pain as Rates Havoc Hits Investor Returns”
“Corporate bond returns from blue-chip firms headed for worst month since February & losses may pile up further as the Fed’s monetary tightening causes more pain in credit markets.” https://t.co/IrTpCACcNl pic.twitter.com/6WP98cG2me
— Danielle DiMartino Booth (@DiMartinoBooth) September 29, 2023
https://twitter.com/FinanceLancelot/status/1707817372529185124
JUST IN: The S&P 500 is has now lost $3 trillion in value since the last Fed rate hike in July.
For the first time all year, we are seeing rallies sold instead of dips being bought.
Today, the S&P 500 is attempting yet another green to red reversal and is down 50 points in 2… pic.twitter.com/HV7EorZ5Mm
— The Kobeissi Letter (@KobeissiLetter) September 29, 2023
Wells Fargo will lay off 525 employees in South Carolina $WFC
— Don Johnson (@DonMiami3) September 29, 2023
Moody’s Sounds Alarm Over ‘Systemic Risk’ in U.S. Leveraged Lending Market
Moody’s warns of escalating systemic risks in the US financial system due to a “race to the bottom” between banks and private credit funds backing high-risk leveraged buyouts. With worsening economic conditions, there’s a surge in banks and private debt sectors financing subpar deals. As private equity picks up pace and hunts bigger deals, banks attempt to reclaim their dominant position in the buyout business. However, this aggressive competition could degrade pricing, terms, and credit quality, magnifying systemic risks, especially in an already fragile economy facing rising interest rates.
Bank Credit Growth Slows To -0.5% YoY, Every Monthly Payrolls Print In 2023 Has Been Revised Lower
Under Bidenomics, bank credit growth fell by 0.5% YoY. Recent data reveals that the perceived robustness of the Bidenomics economy is short-lived, with figures typically revised downwards after initial positive announcements. This trend is evident in the U.S. labor data, where every monthly payrolls report in 2023 has seen subsequent downward revisions. Future revisions to payrolls also seem likely.
Banks’ Ongoing Demand for Fed’s Emergency Funds at Near-Record Level
US money market funds saw a $6.3BN inflow this week, nearing record highs after a previous outflow. Retail funds increased by $7.8BN, but institutional funds declined by $1.5BN. The Fed’s balance sheet shrank by $22BN, its smallest since June 2021. The emergency funding facility use remains at a high of $108BN. Concerns grow as banks might face a $108BN deficit soon, possibly leading to prolonged use of the “emergency” facility in an election year.