Art Cashin – Central Bankers Worried About Systemic Risk As Global Liquidity Dries Up. Greyerz Warns Systemic Risk Will Become Systemic Implosion

Today legend Art Cashin warned central bankers are worried about systemic risk as global liquidity dries up. Egon von Greyerz warned systemic risk will become systemic implosion.

Fed Pivot Or Systemic Implosion
October (King World News) – Egon von Greyerz:  Global currency and sovereign Debt markets cannot and will not last long under Powell’s current strong US dollar policy. Unless the Fed pivots to more pathetic QE (and hence a weaker, debased USD), the systemic risk will become systemic implosion…

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Central Bankers Worry About Systemic Risk
Art Cashin, Head of Floor Operations at UBS:  They did some technical damage this morning, but are now trying to repair slightly.  The fact that they got the Dow back into plus territory will be a help.

Critical is to how they close, particularly, the S&P.  If it closes below 3600, that could cause some damage and a possible call down to as low as 3525.

The second important level is to try to close above 3636.  That could actually hint of a little bit of a bounce building in.

So, the afternoon and the close will be very important.

Let’s review some of the numbers.

The key factor so far this morning has been the yield on the ten-year.  It ticked at 4%, which took us to the day’s lows, but now has backed off to below 3.90%.  So, keep an eye on that.  If it gets above up to 4%, the equity bulls may go into retreat.

There is no real flight to safety yet, but the most recent intervention by the Bank of England and some hint in both Lael Brainard and Evans of Chicago yesterday that the Fed members are becoming somewhat concerned about potential systemic risk as global liquidity dries up.

It will be a clear topic at watering holes this evening and a subject of trading throughout the afternoon.

Let’s see how they close, particularly in the S&P.  The technicals will come into play potentially heavily here.

Stay safe.

Arthur

Continued Leakage From Greatest Sovereign Bond Bubble In History
Peter Boockvar:  The Bank of England again is expressing this as today they are adding index linked gilts to their purchase operations in its attempt to calm down markets but instead is doing the exact opposite. This especially as all the purchases are supposed to end on Friday. I just don’t see how they are then going to get away with outright selling gilts beginning month end as part of QT. The Fed’s QT right now is relatively easy as they have a lot of bonds coming due that will just mature naturally as opposed to the BoE that saddled themselves with a lot of longer term paper.…….more here

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