Jump to content

Garbage Time - Friday


Recommended Posts

  • Replies 12
  • Created
  • Last Reply

THE BIG HEDGE FUND SQEEZE OUT

Now that the Fed has gauranteed profits to the Wall Street banks.

They are starting to report blow out quarters.

JPM, Morgan Stanley.

All blindingly inevitable.

While QE crushes net interest margins and profits from the "investment" side of banks. 

At the same time it is boosting trading profits from the "speculation" side of banks.

Thats what QE does, it punishes investment and rewards speculation.

So front running the Fed becomes the only game in town.

(instead of picking up dimes in front of the defecit steamroller they are now picking up silver dollars).

But the banks will want to keep all the cheap Repo money for their own speculations.

And squeeze out the hedge funds.

Que complaints from the hedge funds to the Fed.

Que Fed raising trial balloon in financial press to fund hedge funds directly.

Link to comment
Share on other sites

I repost permabear stuff, and I follow it in my Twitter feed, and honestly, I just don't understand why they refuse to get it. Some guys fighting the trend since 2009.  Hopefully, they'll be right soon. 

Link to comment
Share on other sites

Doc, others - comments?

from Twitter 

QE conspiracists can say this is all about balance sheet growth. Someone explain how swapping one short term risk free instrument (reserves) for another short term risk free instrument (t-bills) leads to equity repricing. I don’t see it. /end
9:03 AM · Jan 17, 2020·Twitter for iPhone
Link to comment
Share on other sites

2 hours ago, itiswhatitis said:

Doc, others - comments?

from Twitter 

QE conspiracists can say this is all about balance sheet growth. Someone explain how swapping one short term risk free instrument (reserves) for another short term risk free instrument (t-bills) leads to equity repricing. I don’t see it. /end
9:03 AM · Jan 17, 2020·Twitter for iPhone

It's pretty cute of the Fed to throw around the word reserves. A brilliant bit of propaganda instituted by Powell to start. It may fool most people but Kashnkari knows that reserves are cash. Money.  Everyone on a basic level knows the difference between a financial piece of paper, figuratively, and money. 

Kashnkari, or someone like him is going to be the next chairman, even if a Democrat appoints him. There is zero political opposition to stupendous monetary expansion. None, Not anywhere in the world

Link to comment
Share on other sites

20 hours ago, itiswhatitis said:

Doc, others - comments?

from Twitter 

QE conspiracists can say this is all about balance sheet growth. Someone explain how swapping one short term risk free instrument (reserves) for another short term risk free instrument (t-bills) leads to equity repricing. I don’t see it. /end
9:03 AM · Jan 17, 2020·Twitter for iPhone

He's a Fedhead. What else would we expect other than to spout the company line. 

Link to comment
Share on other sites

Archived

This topic is now archived and is closed to further replies.

  • Tell a friend

    Love Stool Pigeons Wire Message Board? Tell a friend!
  • Recently Browsing   0 members

    • No registered users viewing this page.
  • ×
    • Create New...