The Federal Reserve suddenly withdraw $50 billion in emergency liquidity from banks

The recent withdrawal of -$50 billion in emergency liquidity by the Federal Reserve from banks has raised concerns and suspicions. This action is reminiscent of a similar situation in 2020, leading to accusations that the Fed may be intentionally causing a market crash. There is apprehension that this liquidity withdrawal could lead to the freezing of the inter-bank lending system. Additionally, allegations of corruption within the Federal Reserve have been made, suggesting that they might be engineering a banking crisis. Financial indicators, such as rising credit spreads and surging bond yields, are adding to concerns about the future. Furthermore, record-high default rates on credit card loans from small lenders have been observed, and there are growing worries about the possibility of a global economic downturn.

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Pulling emergency liquidity away will cause the entire inter-bank lending system to freeze up again.

The Federal Reserve is a totally corrupt organization. They've engineered a banking crisis to hit right when the government shuts down on October 2nd.t.co/GHCQD8xJr5

— Financelot (@FinanceLancelot) September 21, 2023

Credit markets are suddenly painting a less rosy view of the future forward. Yesterday, as stocks plunged and Treasury yields rose, credit spreads also increased. US investment-grade bond yields are now at the highest levels going back to Nov., and edging toward post-2009 highs. pic.twitter.com/765HGBqTH4

— Lisa Abramowicz (@lisaabramowicz1) September 22, 2023

Credit card losses are rising at the fastest pace since the Great Financial Crisis

Default rate on credit card loans from small lenders has now surpassed the highs of:

– Dot Com bubble
– Financial Crisis
– Pandemic

This won’t end well pic.twitter.com/CbmCkdrNzP

— Game of Trades (@GameofTrades_) September 21, 2023

Good Morning Everyone! Bill Ackman's BIG SHORT is still on. He announced on X that he is still SHORT bonds: “the world is a structurally different place than it was”. He believes long-term rates, e.g, 30-year rates, will rise further from here.

WHY? Skyrocketing national debt,… pic.twitter.com/JHL482EWpc

— Genevieve Roch-Decter, CFA (@GRDecter) September 22, 2023