The Scream! Buffett Indicator Sky High Along With Home Prices As Money Printing Has Goes Wild!!

The Scream! Out-of-control money printing, dead money velocity and collapsing purchasing power of the dollar.

(Bloomberg) — With U.S. equity indexes rising to fresh records again this week, one of Warren Buffett’s most-famous catchphrases comes to mind: Investors should “be fearful when others are greedy.”

Any Buffett disciple who checks in on the billionaire investor’s favorite market valuation metric these days may get the urge to shriek in terror.

And then there are home prices at 38% higher than the peak during the 2005 housing bubble.

Here is what causing me to shriek in terror. Out-of-control money printing, dead money velocity and collapsing purchasing power of the dollar.

US Pending Home Sales Decline -10.6% MoM In February (And -2.7% YoY) As Mortgage Rates Rise

Well, the data for pending home sales is for February (the dead of winter).

But US pending home sales MoM fell -10.60% and -2.70% on a YoY basis. As mortgage rates start their long-predicted rise.

Let’s hope that March is better. And UCLA beat Michigan in NCAA basketball (March Madness), so things are looking up!

MML: US M1 Money Stock Growing At 357% Year-Over-Year With Velocity Of 1.22 (M2 Growing At 27.1% Year-Over-Year With Velocity Of 1.135)

MML stands for Modern Monetary Lunacy.

M1 money stock is growing at a whopping 357% year-over-year as M1 velocity has collapsed to an anemic 1.22.

M2, a broader measure of money, is growing at 27.1% year-over-year with a dismal velocity of 1.135.

Since velocity equals GDP divided by money, The Federal Reserve had better hope that GDP does increase with the trillions that the Biden Administration is throwing at the problem. But since higher taxes won’t be realized for at least a year, there will be even more money printing.

Biden and Yellen must feel that they are flush with cash like Jean Ralphio from Parks and Recreation.

Maybe Biden, Yellen and Powell watched Parks and Recreation and took it literally. Here is how Biden et al will spend all that stimulus money.

Biden’s Snake Juice?

Welcome To (Treasury) Thunderdome! Overnight Reverse Repo Facility Surges To $104.7 Billion As Investors Seek Shelter From Negative Rates

The Treasury markets are getting blasted like in Mel Gibson’s Mad Max Beyond Thunderdome.

(Bloomberg) — The popularity of one Federal Reserve overnight deposit facility has surged as investors look for shelter from negative rates in short-term markets, which are under unusual pressure over quarter-end thanks to the flood of cash in the system.

Usage of the overnight reverse repurchase facility surged to $104.7 billion on Tuesday, the most since last April, according to data from the New York Fed. It pays an overnight rate of 0% — well above the minus 0.05% available at Tuesday’s close in the general collateral market — helping to temporarily reduce the quantity of reserve balances in the banking system.

The overnight GC govt repo rate is negative.

Look at the yield on near-term Treasury bills.

And Treasury RETURNS are negative to boot.

And the 10Y-3M Treasury curve slope is zooming upwards. Welcome to another edition of Treasury Thunderdome!

Negative Treasury yields and returns abound. Powell and Yellen are the money blasters!!