MARKETS A LOOK AHEAD: Seeing Is Believing! 100% PROOF Of FULL-ON LIQUIDITY CRISIS. Mannarino
Okay, everybody, here we go. It’s me, Gregory Manorino. Sunday, September 17, 2023. This is my newest segment of Markets a look ahead. A lot of stuff to cover with you. I want to start off with this. Let’s just look back towards the last week for a moment here. We got this wholesale inflation report, which came in literally lee, almost two times higher than expected. Well, not to you and me.
We know where this is going, and we haven’t seen anything yet. But understanding the current situation, what this is designed to do, and what’s actually happening makes it crystal clear as to where we’re going to go. Now, on the back of wholesale inflation, again, coming in nearly two times higher than expected, we are now seeing a phenomenon that I don’t think should surprise you, me, or anybody else.
So small businesses here in the United States, and I am certain this is a worldwide phenomenon, they just, frankly, cannot keep up with rising costs, especially at the wholesale level, because they’re not like these big corporations that can just keep raising their prices over and over and over again. People are just going to stop going. So what’s going on here is small businesses here are closing in record numbers.
In record numbers. Now, you and I understand the corporate agenda. This is what’s happening here, what’s going on with the Federal Reserve, the real reason why they’re raising rates here, fulfilling the corporate agenda, cutting off credit to small businesses, the consumers getting destroyed. And again, this is not a surprise to you or me. It’s a terrible, terrible thing to see. Now, right off of that, if you recall, last week we spoke about well, this is Bloomberg.
Let me read this to you, what Bloomberg said. The bond market hasn’t this is Bloomberg, not Greg Manorino, okay? The bond market hasn’t flashed recession warnings so consistently for so long, in more than six decades. Did this surprise you? I don’t think it surprises a single person here. It’s an incredible thing to watch. The economy is in free fall, only going to get much worse from here. But what else would you expect in this twisted environment? Now, here’s another thing that we need to pay attention to right now.
You and I understand the distortions in this market are sincerely they’re beyond anything that anyone can really anyone can get their head around. And you turn on Bloomberg and Fox Business and CNBC, and they’re cheering this on like they do every time the market is in some kind of a freakish kind of thing going on. But anyway, so this is a report from Redfin on the real estate market.
Real estate is a popular home search tool. They’re also a brokerage that you can use online. So this is what they said. So, Redfin, this is on Friday, put out this report, which showed that the number of residential real estate deals that fell through in August surged to their highest level in a year. Now, Redfin is citing a combination of factors, which include a 30 year fixed mortgage rate now above 8%, and rising home prices that’s causing homebuyer sticker shock.
Home affordability today is at an all time record low. All right, and you understand this. People are getting destroyed. Real wages cratering. They got nowhere to go but down. The purchasing power of Federal Reserve issued notes and central bank notes around the world is getting sucked out. Now, let’s just move forward. In August, around 60,000 home purchase contracts fell through nationwide, accounting for a 15. 7% of homes under contract that month.
This is an increase from 14. 3% for the previous year, same time, and represents the largest percentage drop increase I’m sorry, since October 2022. Do you believe that this is going to change? What does this tell us all? Clearly, we have a monster bubble here, and the market doesn’t seem to realize that yet. The market is honestly in a state of some kind of a twisted state of euphoria, believing sincerely that the Fed is going to be forced to cut rates sooner than later.
Now, I don’t believe that. I really do not believe that. I’ve been telling you this for the longest time. Will the Fed pause moving forward? Possibly. And the market’s literally banking on it. If the Fed decides to continue to raise rates, and I believe they’re going to, because they’re not done strangling the life out of we the people here, the market is eventually going to understand this, and it’s going to fall in a big, big way.
But for now for now, we are staying long. The market we’re also betting against the debt becoming our own central banks. You and I could not possibly be in a better spot right now. Let us move forward. Risk in this market is nearly out of control. We are less than 20 points away from extreme risk. You all know that. I know that most of you out here do.
Follow the MMRI, the Manorino market risk indicator. Ever since we crossed 250, this market has fallen under pressure. The market can’t get any traction. Look what happened here Thursday. The major stock market indices oh, rawing, higher. Come Friday, we gave it all back. As risk continues to rise okay, let’s see where this goes. Doesn’t look pretty to me, honestly. But the market is sincerely convinced that the Fed is going to cut rates on the back of the continuing relentless bad news crude oil.
Let’s talk more about crude. This moonshot of crude that we have seen since $67 a barrel. It’s just mind blowing. Yes. In fact, we are due for a correction. Are we going to get one? I have no idea. It looks like it wants to go higher here, but a pullback would be bullish. You all know that. If you got in on my calls on crude oil, I’m going to tell you again, pull profit.
Pull profit here. You’ve made a ton of money. Don’t be overly greedy. If you do become overly greedy, you’re going to end up losing it. So pull your profit here, lock it up, and you can clearly enter a new position now using some of those profits. Now, also, again, I don’t sit here discussing crude oil because I think it’s lovely and fun, because it plays into inflation. It plays into everything that we have been talking about.
But anyway, I think crude is going much higher. So, again, opening up a new position here or waiting for a pullback would not be a bad thing to do. All right. Anyway, that’s where we stand with that. Now, I want to show you something that you’re ever, ever going to see flashed on CNBC, Bloomberg, Fox Business, or anything else. Let me just show you this. Does this look interesting to you? You might be asking yourself, what is this? Okay, this is the Federal Reserve’s reverse repo program, or their scam to fool the market that it’s more liquid than it is.
How does this work? Okay, the Federal Reserve is involved in a scheme to trick the system into believing it’s more liquid than it actually is. In other words, we’re not in a liquidity crisis. Now, to prove that we are in a full blown liquidity cris, I punched up this chart for you. This is right off of the Federal Reserve’s own website, and it shows you their reverse repo program.
What do you notice here? Okay, small amounts of cash moving back and forth. This is going back to 2014. Then all of a sudden, we got this explosion here, this explosion of cash moving back and forth between institutions. Right now, today, at the end of this chart here, the Federal Reserve is moving one and a half trillion dollars every single night back and forth between institutions. This is being done for one reason and one reason only.
Because right now, today, we are in a liquidity crisis. What do you and I know for a fact? The system constantly must function in a vacuum. It can never be made whole. But there are ways that the Federal Reserve and other central banks around the world can trick the system to believing it’s more liquid. And this is what this is all about. This is an incredible thing to see.
Again, don’t take my word for this. I didn’t make this up on my own. This is right off of the Federal Reserve’s own website. You can look this up for yourself. The reverse repo chart. These are the parameters that I put in. I hope you can see those and you will come up with the exact same thing. All right, so I wanted to bring this to your attention.
People don’t seem to understand what’s happening here. We are in a liquidity crisis of the highest possible order. It couldn’t be worse. Although the system is saturated in debt beyond anyone’s wildest dreams. It’s not enough. And here’s the proof. Here’s the proof yet again, because the Fed, in order to keep the system of thinking that it’s liquid, is doing this, passing vast amounts of cash back and forth overnight, every single night, 365 days a year to fool the system into thinking that it’s liquid, okay, the system is absolutely, completely insolvent.
The system is going to melt down again by design, and you all know that. But again, the fakery stuff like that is going to continue and continue and continue. And all this is going to do, and all this is doing, people, is making this whole situation exponentially worse. This multiple bubble environment that we are in is going to correct to a fair value. At one point we have hyperbubbles and inverse bubbles.
A Hyperbubble would be housing and real estate, commercial real estate, obviously, this freak show of a stock market. And inverse bubbles would be commodities overall. And of course, gold and silver are my favorite two assets of all time. Anyway, I hope you got something out of this video blog, I really, really do. And I want to hear from you on some of this stuff that we’re talking about.
I want to hear from you about this. Do you think this is okay? This is fine with you? Do you think people should be made aware of what’s going on? People should see this kind of a know, seeing is believing. All right, what is that? You understand? Okay, I think you do. But let’s see if we can get more people to get it, share the video, get it out there.
This report here from Redfin I think is very telling where we are going with regard to the real estate Hyperbubble that we are in. Is it cracking? It very well may be. And understand how this works. When a meltdown occurs in any part of the market, whether it’s real estate, whether it’s the stock market, it usually takes people by surprise because you get the mainstream propaganda telling you how great everything is, all right, and then they go, well, what happened? We don’t understand what happened because all they’re doing is reading scripts.
You understand that? They don’t analyze this stuff. They don’t sit back and think about where we are at, why we are doing. They’ll never show you something like this in 1000 years. But anyway, I think this is very telling here with the number. I mean, it’s just so in our face what’s going on. I don’t want to cover it again. But anyway, I think we got this people.
So with that said, we need to keep our eyes on risk in this market, obviously. Look, I know this sounds bizarre and twisted, but we need to stay long. The market still now just until we’re going to cover this. And I’m going to tell you when I believe we really need to start running for the hills. The time isn’t now, because the market is convinced the Fed is going to cut rates sooner than later.
And I don’t believe that whatsoever. But we’ll move forward. When we move forward, we’ll discuss this more. All right, people, please share this video. Get it out there. If you got anything out of it, I want to hear from you. Please comment those thumbs up. Please give this video a thumbs up if you got anything out of it. Get the video out there. Let people hear it. Let people see what’s going on right under their nose.
Honestly, I think it’s important. All right, I’ll see you in the morning. I’m out of here. Bye. .