End Of ‘Blue Wave’ Hopes Sparks Pavlovian QE-Anticipating Buying Panic In Everything

For months, The Fed and the market have been demanding, anticipating, and pressuring Congress for moar… moar loans, moar handouts, moar bailouts, and moar promises of moar.

The outcome of the election, most specifically Democrats’ greatly disappointing results in the Senate and the House have crushed the hopes of a ‘blue wave’ and with it, trillions in free money.

Which leaves just one last hero, once again, to save the world…

When Powell asks for more fiscal stimulus tomorrow, who will tell him it’s not coming.

— zerohedge (@zerohedge) November 4, 2020

And that is where we are – the market has flipped to anticipating more QE, as it is now the only stimulus option likely in the short- or even medium-term.

That anticipation has sparked a buying-panic in everything.

Stocks are soaring…

Source: Bloomberg

Bonds are bid…

Source: Bloomberg

Gold is spiking…

Source: Bloomberg

And Bitcoin is exploding higher…

Source: Bloomberg

As the endless debasement crashes the dollar…

Source: Bloomberg

How much longer can that game last? And will Powell et al. push back against their ‘hand-out-er of last resort’ position given the systemic fragility it is building into the stock market’s foundation.