11 Comments

“Failing to identify a serious hazard in the Treasury market before it’s too late will cause a further tumble in the public’s already fragile confidence in policymakers and institutions”.

Yep. I can summarize this article in two words ‘money laundering’. And those of us putting in the sweat to pay both the visible and hidden taxes are DONE with it. Just my uneducated opinion

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Aaron is so on point with this.

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Does this cross refer to what the BIS just raised as a big concern for them? There feels like a disconnect between your, ‘the fed has more tools than you can imagine’ POV and this nightmare when combined with the off financial statements trillions the BIS talked about. Genuinely asking and not looking to point score

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Funny, this is the topic of my next piece 😀

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You were way ahead of me. I am still formulating the real question here

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Damn. This is like reading a great detective or spy novel but it’s about our real life financial system. Thanks for the good information!

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Central Banks (led by the Fed) continue to shift the goalposts after every financial crisis emerges. They’re incredibly reactive, not proactive (even with some of the measures currently in the works).

The fact they remain flat-footed gives me the most anxiety; however, they continue to be the end-all, be-all until the public finally rejects this notion. I think that true break in faith and confidence is a long ways down the road.

Great piece.

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Thanks!

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Regulate the System and somewhere, somehow, someone will find a way to game the system for their own benefit! Same as it ever was...(Talking Heads).

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With all these complicated names and confusing acronyms, it reminds me of the 08-09 crises. Where crazy amounts of opaque debt and financial instruments were given complicated names to confuse regulators and the public. collateralized debt obligation CDOS, CLOs, synthetic CDOs, etc. Don't all these crazy bullshit repo names sound a tad familiar?

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Not repo, but other obscure products for sure

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