Central banks continue capitulating, interest rate expectations collapse, volatility surges

SWISS NATIONAL BANK PLEDGES SUPPORT

• Contagion fears caused Credit Suisse’s stock to plummet by 25% today. While it is still afloat, the Swiss National Bank jumped in to announce it’s ready to inject cash if necessary. This is significant, as the Swiss National Bank is known for hawkishness.

• The Saudi National Bank, a large Credit Suisse investor, is unable to join in on the fun due to a regulatory issue. The irony.

CNBC

INTEREST RATE EXPECTATIONS COLLAPSE

• It looks like the Fed has gone into panic mode, with US interest rate expectations plummeting this week.

• We’ve gone from a 100% likelihood of a rate increase of 0.50% or greater to a 100% likelihood of 0.25% or less in 4 trading days.

Investors.com

VOLATILITY SURGES

• The VIX (a measure of implied volatility) surged by 10% today.

• Bitcoin and Ether briefly rose above $26,000 and $1,770 respectively on Tuesday before falling to as low as $24,000 and $1600.

• Over $300 million in crypto futures were liquidated in the past 24 hours

TWEET OF THE DAY

Great summary of the reactionary policies of US Leadership since the Cerveza Sickness of 2020 by investor Ale Resnik.

CHART OF THE DAY

Bitcoin is dramatically outperforming the Nasdaq this week.