6 replies to this topic

[OEXCHAOS]

...of just 4 basis points.

 

Nobody seems to be concerned about the financial system paying off it's 3 months debts. Yielding least (basically) since March 2018.

 

M

[opinionated]

I don't understand it Mark,

 

Could you explain what it is and its implication.

 

Thanks

 

O

[skott]

And idiots are willing to invest in negative interest yielding investments. What does that tell you mark? Have you taken on the role of apologist for the status quo?

[OEXCHAOS]

I don't understand it Mark,

 

Could you explain what it is and its implication.

 

Thanks

 

O

 

I look at 3-month Financial Paper vs. Non-Financial Paper. If there's a serious problem brewing in the financial system, those who know it well and lend to it will begin to demand more of a premium to lend them money. Right now, they are demanding essentially no (just 4 bp) premium. Maybe they're wrong, but who has more incentive and ability to know better?

 

This doesn't mean that trouble can't spring up from some other sector, but as far as I'm concerned, the odds of some structural issue with the banks or brokers or insurers taking the market down in the near term is virtually nil.

 

Mark

[OEXCHAOS]

And idiots are willing to invest in negative interest yielding investments. What does that tell you mark? Have you taken on the role of apologist for the status quo?

 

Investing is not, and trading is especially not about the politics of what should or shouldn't be. It's about what what is.

 

The fact is, those in a position to know best are not worried about financial companies paying their debts. Thus, financial Armageddon is very unlikely.

 

Mark

[SemiBizz]

Welp, the chickens finally came home to roost...

 

We are being converted to an electronic cash society...

 

Essentially imprisoning our liquid capital...

 

Time to top off that cash supply

 

Have enough small bill currency to buy what you need in case of a "bank catastrophe".

 

No wonder there's a flight to US$.

 

Of course the banks would never close, cancel all credit cards, and shut down ATMs... or would they?  

[skott]

 

And idiots are willing to invest in negative interest yielding investments. What does that tell you mark? Have you taken on the role of apologist for the status quo?

 

Investing is not, and trading is especially not about the politics of what should or shouldn't be. It's about what what is.

 

The fact is, those in a position to know best are not worried about financial companies paying their debts. Thus, financial Armageddon is very unlikely.

 

Mark

 

 

Who knows better than the Fed?  and they are putting 1 Trillion into the Repo market along with their other bags of trickeration