STOCK MARKET WATCH -- Wednesday, 22 March 2023

[Tansy_Gold]

STOCK MARKET WATCH, Wednesday, 22 March 2023

Previous SMW:
SMW for 21 March 2023




AT THE CLOSING BELL ON 21 March 2023


Dow Jones 32,560.60 +316.02 (0.98%)
S&P 500 4,002.87 +51.30 (1.30%)
Nasdaq 11,860.11 +184.57 (1.58%)

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Market Conditions During Trading Hours:

Google Finance
MarketWatch
Bloomberg
Stocktwits

(click on links for latest updates)

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Currencies:













Gold & Silver:






Petroleum:

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DU Economics Group Contributor Megathreads:

Progree's Economic Statistics (with links!)
mahatmakanejeeves' Rail Safety Megathread
mahatmakanejeeves' Oil Train Safety Megathread

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Quote for the Day:

This is how Idiot America engages itself. It decides, en masse, with a million keystrokes and clicks of the remote control, that because there are two sides to every question, they both must be right, or at least not wrong. And the words of an obscure biologist carry no more weight on the subject of biology than do the thunderations of some turkeyneck preacher out of the Church of Christ’s Own Parking Structure in DeLand, Florida.

Charles P. Pierce. Idiot America: How Stupidity Became a Virtue in the Land of the Free . Knopf Doubleday Publishing Group. © 2009.

This thread contains opinions and observations. Individuals may post their experiences, inferences and opinions on this thread. However, it should not be construed as advice. It is unethical (and probably illegal) for financial recommendations to be given here.

[Warpy]

1. Thanks for reminding me about one of Pierce's best quotes

It really describes things so perfectly.

[Tansy_Gold]

5. I love this book

It's one of those that can be opened to almost any page at random and there will be at least half a dozen nuggets of pure gold.

[bucolic_frolic]

2. Banks are deficient in liquidity because they lent at puny interest rates

In order to make money, banks have to raise loan rates fast to make loans more profitable and to attract capital. And there are fewer borrowers at high rates. So banks are part of the contraction of credit, and part of the liquidity problem. Banks fail because of liquidity. There may be teeterings for a few months. The Fed is fighting inflation by contracting balance sheets by selling bonds at higher rates, and also providing more liquidity to banks so they don't fail, which is the exact opposite of the contraction they already began. The medicine works but it must be mixed with anti-medicine so the whole thing doesn't implode. Banks are top-heavy with T-Bonds and those are not the same as liquidity. They are capital, but they are not liquidity that can be loaned out.

Count me as seeing quite the recession ahead. I remember 10 of the last 9 recessions, and in every one some major blue chip stocks were trading at some point under $10. Citigroup, Chrysler in it's heyday revival, Best Buy, Nike. I do remember AAPL at $28. My list of vulnerables? Well $10 is not $10 like it was 20 years ago, but INTC, UBER, are on radar. So maybe $20.

[Tansy_Gold]

3. Fewer borrowers because . . . .

. . . .all those who can afford to pay back loans at high rates already have all the money (and more!) that they need? Po' folks** can't afford to pay back . . .anything?


**Includes working- and middle-class folks who have been priced out of lifestyles and are liquidating what assets they have -- stocks, real estate -- at fire sale prices just to buy groceries???


And yes, since you asked, I'm extremely cynical and pessimistic today! And I have no sympathy at all for all the poor banks.

[bucolic_frolic]

4. I got a 20+ page letter from my bank this week to update the rules of banking with them

Doesn't effect me at all I don't think, it's not about fees except it's a no-nonsense on bounced checks and covers them in the event of abnormal conditions. It's a regional so maybe that's what's going around.