It's the liquidity, stupid! This chart shows why stocks are rising in the midst of the banking crisis. Central banks are again pumping billions in liquidity into the market. The combined balance sheet of the 3 leading CenBanks rising again. pic.twitter.com/DX8MzlbRix

— Holger Zschaepitz (@Schuldensuehner) March 17, 2023

OOPS! Banks rush to borrow record-breaking $150bn from Fed's discount window this week, topping even a record set during the 2008 financial crisis, after the collapses of Silicon Valley Bank and Signature Bank. https://t.co/wtqLC7L1jf pic.twitter.com/z3RySx98eO

— Holger Zschaepitz (@Schuldensuehner) March 17, 2023

There will be those who will tell you this is a good thing, a good sign. The Fed doing its job.

Take a look at those comparisons. When Primary Credit use goes way up, bad things happen. Have already happened. pic.twitter.com/HNzbgNBgcv

— Jeffrey P. Snider (@JeffSnider_AIP) March 16, 2023

From the @WSj re #markets' implied probabilities for what the #FederalReserve will do on rates next week.
The only sure thing is that this volatility will persist right up to the policy meeting.
What a world we live in.#economy #fed #centralbanks #EconTwitter #inflation #growth pic.twitter.com/bkRc25fkSf

— Mohamed A. El-Erian (@elerianm) March 16, 2023

The "Fed Put" is back with assets on their balance sheet increasing $297 billion over the last week, the largest spike higher since March 2020. Thus nearly half of the Quantitative Tightening since last April was undone in a single week. pic.twitter.com/3Nk4J4Sxku

— Charlie Bilello (@charliebilello) March 16, 2023

#ECB's #Lagarde announced yesterday a new 50bps hike – #Inflation, she said, is expected to remain too high for too long.

The President of the ECB, not long ago, was with zeal exclaiming that inflation is "transitory".

Is it incompetence?

| @CNBC https://t.co/WS9MZgjNYN… https://t.co/cAYTyJRgrY

— Harris Samaras (@HarrisSamaras) March 17, 2023