A lengthy transition onto a "secured lending" standard has gifted the Fed more power than ever before, and as of recent events, there's no turning back
Rather too optimistic. The real issue remains: letting banks create and lend money against assets they don’t have. See @This time is different” or “The grip of death”. Or our free book at http://osf.io/pnxcs/.
From fractional reserve, to rampant rehypothecation. They lend what's yours and mine and what doesn't even exist.
No one has this under control.
I think with each passing quarter, as the effects of ISDA 6, increase inexorably, there will be no place for the missing $quadrillions mainly in interest swap derivatives to hide.
While I appreciate that there may be no need for human intervention in its etiology, do you think it unlikely with the amount of GoF that is being conducted across the globe?
This is very well done, but feels like part one only.
what happens when there are no banks lending and the daisy chains are just one degree of separation from the FED?
another interesting take. Is there any real value for all these repo backandforth? Does anything get done beyond paying commissions to bankers and bureaucrats?
"The shenanigans didn’t stop there." -It has been common to refer to "financial crimes" as "shenanigans." I dislike this trend; it euphemizes what are actually very serious and large crimes / theft.
Just subscribed. I love your unique perspective from an investor who has been getting his butt kicked lately because I no longer understand the market.
"The U.S. central bank’s control over global finance is set to snowball out of control." So, the desire for more control ultimately results in less control? So yet again, desirous of power, but well intentioned, agents of Control ultimately lead to the triumph of Kaos. Will mice and men in this cold corner of Space ever get smart? IDK, but, if the process does actually produce a snowball I hope the FED sends it to Lake Powell before all our boat ramps are high and dry. In any event, it'll be interesting to watch, and probably not hard to predict, how the old-kleptocratic Communists, agents of T.H.R.U.S.H., and miscellaneous other atavistic Authoritarians take to the bit and reins. Incidentally, Agent 99 (a.k.a, Susan Hilton) recommends turning off the TV's sound and listening to "99 Luftballons" while watching the Revolution.
As I said, exchanging thoughts on this platform is a right pain. If you wish to chat DM me. There is not much GoF research. Present thought is that SARS-CoV-2 came from the market, though obvs the local existence of a research lab raises the priors in a Bayesian sense. Over and out on this platform.
Rather too optimistic. The real issue remains: letting banks create and lend money against assets they don’t have. See @This time is different” or “The grip of death”. Or our free book at http://osf.io/pnxcs/.
Thank you for this comment. Simple yet PROFOUND. Simplicity is elegance, and you have nailed it. Brings everything into focus.
Thank you, so much for this
I can't wait to read it.
This is crucial to everything.
From fractional reserve, to rampant rehypothecation. They lend what's yours and mine and what doesn't even exist.
No one has this under control.
I think with each passing quarter, as the effects of ISDA 6, increase inexorably, there will be no place for the missing $quadrillions mainly in interest swap derivatives to hide.
No bueno.
100%!
God, computational biology sounds like the bomb!💣
What do you think are the chances that SARS-CoV2 mutated as it has without purposeful human facilitation?
No need for human intervention. If u r interested in long covid. See http://dbkgroup.org/longcovid/. Or DM me as this medium is sluggish.
While I appreciate that there may be no need for human intervention in its etiology, do you think it unlikely with the amount of GoF that is being conducted across the globe?
At the risk of being (totally!) wrong, I think you might find this interesting. It looks at human drives from the point of enjoyment.
https://pca.st/episode/31ea5477-212b-49af-ab49-8bf2d5224f64
Thanks for your report. I'm glad somebody's keeping an eye on things.
This is very well done, but feels like part one only.
what happens when there are no banks lending and the daisy chains are just one degree of separation from the FED?
another interesting take. Is there any real value for all these repo backandforth? Does anything get done beyond paying commissions to bankers and bureaucrats?
it's all about creating and fueling liquidity
nothing else matters
How are hedge founds creating leverage 50:1, by doing $1 treasury to $1 in repo?
And more general, why do 1:1 repo, if one can just sell the treasury to get the money?
"The shenanigans didn’t stop there." -It has been common to refer to "financial crimes" as "shenanigans." I dislike this trend; it euphemizes what are actually very serious and large crimes / theft.
Just subscribed. I love your unique perspective from an investor who has been getting his butt kicked lately because I no longer understand the market.
Welcome 🥳
Thanks!
May stay unheard. 1.5h podcasts on political divides (artificially created) not my thing…
Easier to chat via Twitter DM @dbkell if you wish
"The U.S. central bank’s control over global finance is set to snowball out of control." So, the desire for more control ultimately results in less control? So yet again, desirous of power, but well intentioned, agents of Control ultimately lead to the triumph of Kaos. Will mice and men in this cold corner of Space ever get smart? IDK, but, if the process does actually produce a snowball I hope the FED sends it to Lake Powell before all our boat ramps are high and dry. In any event, it'll be interesting to watch, and probably not hard to predict, how the old-kleptocratic Communists, agents of T.H.R.U.S.H., and miscellaneous other atavistic Authoritarians take to the bit and reins. Incidentally, Agent 99 (a.k.a, Susan Hilton) recommends turning off the TV's sound and listening to "99 Luftballons" while watching the Revolution.
Thanks for the awesome post. Do you know where I can find a graph of the tri repo general collateral rate?
https://www.newyorkfed.org/markets/reference-rates/
scroll down a bit
As I said, exchanging thoughts on this platform is a right pain. If you wish to chat DM me. There is not much GoF research. Present thought is that SARS-CoV-2 came from the market, though obvs the local existence of a research lab raises the priors in a Bayesian sense. Over and out on this platform.