It really feels like they have lost the plot. American banks, corporates and households will soon have the multi trillion dollar subsidies arriving at their doorsteps through one acronym or another (CPFF, MMLF, TALF, PMCCF, SMCCF…). The Fed is now the lender of last resort for not only Wall Street, but also to households and businesses. The real hammer:

In light of the shift to an ample reserves regime, the Board has reduced reserve requirement ratios to zero percent effective on March 26

They are quite literally, firing from all cylinders.

Not to mention the $500bn that the Senate is looking to push through which by the way, is more than three times what they spent bailing out AIG & all three US auto manufacturers 11yrs ago. The Democrats have dubbed the bailout package as “Mnuchin’s slush fund.” The name is a bit of a misnomer because guess who gets to decide who gets what? Yours truly

Amidst an 82% decline in China monthly auto sales, Ford losing investment grade status and GM put on watchlist negative, is likely a harbinger of more to come. In March alone, BAML calculates total net downgrades on $284bn worth of paper while S&P’s tally of cuts at 565 quarter-to-date is the most on record.

https://www.sifma.org/resources/research/fixed-income-chart/

It is highly likely that American corporates will continue their time old tradition of deploying ginormous wads of cash to buying back their own stock (Over 70 percent of S&P 500’s 2018 earnings were accounted for by $797.9bn in buybacks) and with the backdrop of the fastest 20% drop we’ve seen in history (SPX 15days) can only expect this to increase.

Entertaining to be seeing commentary about how all of a sudden crypto is in sync with the markets.

All I say is even a broken clock is right twice a day…

Bitcoin has mopped the floor at $5k and is now back to testing $7K, 3weeks since the 50% drop after having seen many of the malfunctioning parts of the ecosystem patched up and ready for the next rollercoaster.

Finastra’s outage serves as an important reminder of the current fiat on-ramp bottleneck. 800 crypto players were impacted to the tune of $200mn in delayed wire transfers as Silvergate’s vendor addressed the security threat.

Maker has managed to broker a peace as their backers bring up the rear and wear the losses as they remain determined to keep the defi platform afloat. Turns out three addresses were the winning bidders for the majority of the MAKR vaults.

https://explore.duneanalytics.com/public/dashboards/HDfmSXd9EwVvgoIAsh44DcprJ5zAkGIm1M4u34da

They have successfully stopped the rush to the gates as collateral value holds steady above $300mn, for now.

$HIVE +12.8% has since successfully forked away from $STEEM -2.3%, Sun & his cronies and has successfully attracted most of the content producers to switch to the new network. HIVE volumes — albeit low- are 40% higher vs. STEEM. and also trading at a premium.

The Tezos foundation has seemingly had enough and have put the class action lawsuits behind them by settling behind closed doors. Whether this propels $XTZ to punch through 52-week resistance $1.80 remains to be seen.

Telegram has been less fortunate as they appeal the latest injunction awarded to the SEC. The ruling is baffling as they have clearly found no grounds to charge the initial ICO as a securities offering, they are saying the release of GRAM to the public by launching the network would in essence be “an integral part of the sale of securities without a required registration statement.”

Bitfinex, Tether, Telegram… all in the same unfortunate bucket of not being American companies but dominating so they are having a go is how I read this groundless, pedantic, meddling. TON labs has decided to circumvent the issue by hardforking the public code, and launching the network without the Telegram messenger. godspeed…

Just four days away from the deadline set for Mt Gox creditor’s rehabilitation program and with fiat claims given priority, claimants for the 141K BTC & 152K BCH (as of March ’19) may very well choose to take a haircut and seek closure by doing just that. This is more than 2x the BTC that was taken in the Plus Token scam that has been attributed as the cause for several unexpected free falls in the market…

Does history repeat itself by reflating capital markets in this joke of a merry-go round enriching the top 1% by reflating asset prices? One thing for sure is that more are aware of the bottomless-pit of support the Fed & the treasury is throwing at the problem. Money does talk and these players are talking in trillions. Don’t like the narrative or the fact that your wealth is being printed away? Think of bitcoin as a call option against inflation. Buy the hedge, buy bitcoin.

May the trend be your friend… Happy Trading!

Common Base CEO, pow.re co-founder. the strait jacket has been removed