/biz/ - Business & Finance

>>22781471
This
Fed forced primary dealers to sell them bonds; this money is kept in balance at the Fed so that they are able to loan $$$ out (need to maintain 10% reserve balance at Fed)
The goal was that by increasing these balances banks would feel more comfortable lending
However.. in reality, this is not what's happened. Banks see the squeeze more than anyone, as they're the ones receiving call after call every single day that
>We can't repay our loan
>We need a few months where we don't pay
>We need loan forgiveness

It makes zero sense (from the banks perspective) to keep lending when all the fundamentals prevent loans from being repaid.
Why would you loan money out that had low probability of being repaid?
You wouldn't.

>>22278808
I think you might be right.
I think the sell-off will continue & we will see big red days for the whole market ahead; this will greatly increase the demand for the dollar (as people will want dollars instead of their stocks) - the European central bank also just announced they're going to be trying to drive down the Euro (which will further boost the dollar) There are currently HUGE short positions on the dollar, which means that the squeeze is going to be particularly juicy
The dollar is currently bouncing from 2 year low and Euro is bouncing from 1.20

Japan / the Korean Peninsula is about to be hammered by a serious typhoon (bullish)
It's going to be very interesting to see how foreign markets act without the US open on Monday..
I think we'll still see the 6:00-7:00pm & 12:00am-1:00am BIS manipulations..

I just don't know if we'll realistically see silver much below $25. I think if the sell-off does continue, it might get panic sold-off below $25 and then rebound sharply.

The price can't be allowed to be below $25 or far too many contracts would be taken with intention of standing for physical delivery..
but then again, as we see >>22277929
it's very unlikely a force majeure is going to happen this month.. (which is one of the major bullish drivers)

However, after Congress votes the new stimulus the week of the 14th & the Fed meets the 15th/16th and 'officially' enacts average inflation targeting measures, it seems very likely for PM to take off again

This week might be very red though.. we'll see.

>>22241624
>>22241293
>>22240954
I don't know.
It will be a very unprecedented time..
The US markets will be closed on Monday, so it will greatly decrease the ability to manipulate the price down.

As I see it, the Bank of International Settlements (among others) is hammering the price down 6:00-7:00pm, 12:00-1:00am EST on low volume every single day; then the US market hammers it down 9:30-11:30am (when London closes) on high volume makes it hard for the other markets to raise it higher

They are suppressing the rise, but they know that the price will rise regardless - it's like trying to hold a cork into a champagne bottle, eventually it'll pop

At this point, they can't allow the price to go below $26.33 as then people will all just buy contracts & stand for delivery (they can't have that)
They also can't allow it to rise above $30 because then it will moon & fiat will collapse (they can't have that)

So.. it seems likely that it'll crab between $26.33 & $29.00 until the next big 'shock' to the system, that will kick it above $30.00 and then they will lose control on price manipulation / mania will set in

I do think that it will be higher than it was at close ($26.91) possibly in $27.50-$28.00 range

However, it's possible on Tuesday we see the market sell-off continue (imo the bubble has officially popped, and it is only going to get worse) if that happens, then USD demand will skyrocket (think about March 2020) and the dollar will be the safehaven - making sliver fall.. however.. they can't let it fall below $25 as then everyone would just stand for delivery.. and the market has wised up to this / as we saw on Friday the sell-off continued, the dollar was rising, and gold/silver reached it's bottom / $1930 & $26 were defended

>tldr; I think we will see crabbing in $26.33-$29.00 range until the week of the 14th, when Congress will pass the next bailout round and the Federal Reserve will meet & officially enact average inflation targeting