Monday , October 18 2021
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China’s Evergrande is not the problem with the market.

Summary:
China property developer Evergrande may provide a believable excuse for some to sell stocks, but the real reason the market is going down is tied to what I've been saying here over the past few weeks. Trade and invest using the concepts of MMT. Get a 30-day free trial to MMT Trader. https://www.pitbulleconomics.com/ Download my podcasts! New one every week. https://www.buzzsprout.com/1105286 Mike Norman Twitter https://twitter.com/mikenorman Mike Norman Economics: https://mikenormaneconomics.blogspot.com/

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China property developer Evergrande may provide a believable excuse for some to sell stocks, but the real reason the market is going down is tied to what I've been saying here over the past few weeks.



Trade and invest using the concepts of MMT. Get a 30-day free trial to MMT Trader. https://www.pitbulleconomics.com/



Download my podcasts! New one every week. https://www.buzzsprout.com/1105286



Mike Norman Twitter

https://twitter.com/mikenorman



Mike Norman Economics: https://mikenormaneconomics.blogspot.com/
Mike Norman
Mike Norman is an economist and veteran trader whose career has spanned over 30 years on Wall Street. He is a former member and trader on the CME, NYMEX, COMEX and NYFE and he managed money for one of the largest hedge funds and ran a prop trading desk for Credit Suisse.

33 comments

  1. Hey Mike, even Eskimos need to buy ice in the summer time hahaha…

  2. Fabricated economy. Woke economist.

    • Mike Norman MMT Economics

      Calls me a "woke economist." WTF is that? And he's pissed off because government spending supports the economy? Show me somewhere where that's not true. Every economy has some degree of government involvement. He's living in some Ayn Rand fantasy world in his head. Total frustrated loser.

    • @Mike Norman MMT Economics I meant it the other way , you are saying how it is not that guy 🙂

    • @Mike Norman MMT Economics I appreciate you are telling the masses like me how it works. This stuff is not taught properly in schools , I have an econ degree and I learned Milton Friedman monetary econ and that's not how things work anymore.

    • FutureRepresentative

      Woke economist? Do you know what woke means? Woke = anti white. Mike has never made any comments suggesting that he is woke. Also, I'm not even sure what a woke economist would look like. In favor of transferring money from poor white ppl to poor non whites?

    • @Mike Norman MMT Economics LMAO!

  3. Should have sold earlier. I was going to do so this week. It will bottom mid October

  4. Mike, ignore the haters, and engage with people who are interested in what you have to say (namely, me). I've asked this before, but you've never answered. I understand that banks need to have liquid assets (ie capital / cash) to cover more risky assets (although, I didn't think securities / treasuries are risky). So, why are reserves, which I believe is cash, not classed as capital? I know I've misunderstood something – I'd really appreciate an explanation.

    • @Mike Norman MMT Economics So reserves are not considered capital because reserves are consolidated assets, the same category as treasuries, which are needed for this stress test, well above 3% ratio to capital to make sure things are good. I think I get it, thanks

    • @Mike Norman MMT Economics So now, what I get from this video is that now instead of increasing capital, they are selling and reducing their reserves and securities/treasuries.

    • Economy Forecast Laboratory

      @cryptonite Clark // those reserves are not banks' capital. those reserves are banks' liabilities to either hold them until you are ready withdrawal your reserves into cash, checks, or any money transfers. however, banks are basically doing this free for you in exchange of making loans based off of banks balance sheets that includes depositors reserves to debtors and investing them into a variety of assets. banks are operating this way instead of charging fees to depositors which it would discourage people to park their capitol in banks. people falsely assume that banks are fault services that store your money secure them, but it isn't. they are no different than investment firms except for checking account services which in most cases have some minimum balance requirements to cover their cost for operating daily cash withdrawals and money transfer services

    • Mike Norman MMT Economics

      @Economy Forecast Laboratory Reserves are both assets and liabilities. They are found on both the liability side and asset side of the balance sheet. It's their asset treatment that affects the calculation of the SLR.

    • Economy Forecast Laboratory

      @Mike Norman MMT Economics absolutely!! I mean banks deposits each other, indeed!!

  5. They’re printing money 💰!

  6. So correct me please.
    The Feds idea is to pump cash into banks balance sheets to force them to loan it out. Then slap them with the SLR to force them not to hoard it?
    So banks have to sell sell securities to stay compliant?
    Doesn't the Fed have the mandate to do helicopter money now. Or heli-money doesn't spur the correct kind of sustainable growth but instead spikes the CPI…

  7. Good to see you back Mike!

  8. Great MMT Report today! Thanks for keeping us all up to speed while on your trip! You're the best of the best!

  9. Great video ! Mike

  10. CrabApples Bodaciously Bitter Fruit's

    Rico real estate starting with Larry fink an all the FOMC chairs

  11. CrabApples Bodaciously Bitter Fruit's

    Working hard on knocking over housing projects an trailer parks

  12. CrabApples Bodaciously Bitter Fruit's

    Buy $DRv attack there collateral go around the criminal fed stop having your gold fetish

  13. That was a great quote, Mike: "Banks need capital to cover their assets". They really do need capital to cover their ass**! Another good video about the truth.

  14. I bought some puts on the SP last week (expiring on november). Thanks for all your work Mike.

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