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We're screwed.Central banksters


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#1 Chilidawgz

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Posted 13 January 2020 - 10:41 PM

Kiss your {bleeeep} good bye


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#2 da_cheif

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Posted 13 January 2020 - 11:05 PM

Kiss your {bleeeep} good bye

watch the sky



#3 Waver

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Posted 14 January 2020 - 12:31 AM

At what point does any of this come to a crashing halt?
I can agree it is getting worse.
However it may be able to last another 30 years for all we know.
By then you and I can make LOOT.

#4 alexnewbee

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Posted 14 January 2020 - 02:54 AM

Well, the question is - why this all came up in Sept 2019? I bet the banks knew about such "creative" collateral from the very beginning. But started to reject it only recently. From this comes another question, suggested by Waver - what can stop them from kicking the can down the road for another 20-200 years? This is not explained in the video.

Nevertheless, very interesting, thank you Chili. I was also thinking - may be the problem is not the liquidity, but collateral.


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#5 SemiBizz

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Posted 14 January 2020 - 09:23 AM

Welp, it's certainly an ill-collateralized business, so no lack of liquidity, just nobody who wants to loan it...

 

Now, fast forward less than 3 weeks...Brexit 1/31/20

 

Demand for Repo will go off the charts 

 

How high can it go for the F'eds?

 

$1/2T per day?


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#6 OEXCHAOS

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Posted 14 January 2020 - 09:39 AM

All I know is that Financial CP is only commanding a 2bp premium to non-financial paper. So, those who are in a position to know and who have considerable incentive to know about the immediate health of the financial system are not worried.


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#7 SemiBizz

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Posted 14 January 2020 - 10:45 AM

Problem is essentially the same as 2008

 

There's plenty of money if you have the "right" collateral

 

In this case though, they are devising ways to repackage toxic garbage and try to sell it as caviar.

 

And that's a STRUCTURAL problem.


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#8 OEXCHAOS

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Posted 14 January 2020 - 12:55 PM

In 08' risk was very clearly showing in the Commercial Paper.


CommercialPaperFred06thru09.gif


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#9 Iblayz

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Posted 14 January 2020 - 01:38 PM

That FRED chart doesn't mean that there is no problem. It only means that the problem hasn't been recognized yet for what it is. And, in 2008, the huge issue that brought the market down was US based. I do not believe that the problem here is US based. Thus, I doubt that the above referenced chart will necessarily "show its hand" in advance (at least as it relates to degree) as before.

 

As I said previously, there is NO WAY under the sun that this repo thing should be happening (on the scale that it has happened) with a booming economy and a booming market. If the liquidity injections had stopped after a few days, then one could rightfully dismiss them as a temporary thing. Something is amiss. That something that is amiss is probably based on another continent. As such, and with the awareness at the highest levels of the nature of the problem (and this IS reflected by the actions of the FED and IS being misinterpreted by the Bubblebutts......no surprise here), it could be many months before what is known beneath the surface actually rises to the surface.

 

In the meantime, and in my humble opinion, there is no chance of a meaningful and protracted pullback now until the SPX cash reaches the 3336 area.



#10 typicalbear

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Posted 14 January 2020 - 02:32 PM

Booming economy and market compliments of  $1T of borrowed money. Cut fiscal spending by a trillion and it will go BOOM.