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Be Ready For What Happens Every Time When a Bottom That Looks Like a Top Fails 12/17/21

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Maybe they were trying to get their bets back from this weekend NFL debacle.....

Point spreads moving like meme stock because of NFL protocols and re-scheduling

 

>: The Turk got Urban Meyer in 1 year.  Wonder what his payoff is for the rest

of his contract......Enough for several people to retire........

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13 minutes ago, MisFit Kid said:

Maybe they were trying to get their bets back from this weekend NFL debacle.....

Point spreads moving like meme stock because of NFL protocols and re-scheduling

 

>: The Turk got Urban Meyer in 1 year.  Wonder what his payoff is for the rest

of his contract......Enough for several people to retire........

Wouldn't shock me if Urban tried to get fired. Take a year off, then take the Longhorns job next year when Sarkisian gets fired. 

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5 minutes ago, PullMyFinger said:

Wouldn't shock me if Urban tried to get fired. Take a year off, then take the Longhorns job next year when Sarkisian gets fired. 

What is Sark's contract? Urban is getting ~ $50 Million over the next 4 years......after being fired.

What a Racket......

 

>: Maybe they will turn into Good King Wenceslas......right........

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The RRP

It's the financial cyclone bunker built for Wallstreet.

Its where all their speculative capital is hiding out.

Its been constantly enlarged all year as more and more capital has demanded admittance.

Its where they are patiently waiting to take advantage of the financial post apocalyptic distopia being created by the Fed.

They are probably playing pool and listening to some Frank Sinatra.

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22 hours ago, MisFit Kid said:

And now for something to ponder over the weekend while we are all

wrapping gifts and enjoying the Holiday Season.......

https://mishtalk.com/economics/reverse-repos-hit-a-new-record-high-today-its-tapering-with-a-twist

That is utter, absolute horseshit. Garbage.  The guy doesn't know where the money came from or where it's going.  

The Fed wasn't tapering its balance sheet. This is overnight money, no different than a bank reserve deposit. WIth one difference. Reserve deposits are tied to assets.  They can't decline unless the Fed sheds assets. RRPs are cash. The MMFs deposited it with the Fed at will and they can withdraw it. 

RRPs were created to give the MMFs an alternative to the T-bills they had held that got paid down to keep the debt below the limit. Now that the debt ceiling is lifted, the RRP slush fund will get withdrawn relatively quickly.  The trouble starts when it starts to level off. 

When somebody says "what a mess" it means that they don't understand what they see. But there's a very clear reason for the growth of RRPs. It's entirely transparent, and clear what's been going on. 

Quote

The canny Fed and Treasury have, however, created a $1.6 trillion slush fund to help absorb those Treasuries. It’s the Fed’s RRP program, where money market funds, banks, and dealers can deposit the cash they got back from the T-bill paydowns that they got from the US Treasury since February. This report has the charts to show exactly how that worked. The correlation is perfect.

The Treasury paid off that paper systematically so that it would stay under the debt ceiling. That money is now just sitting there in overnight, same as cash, RRPs, waiting to re-absorb all the new Treasury supply that’s on the way.

Or is it? Nobody is forcing the money managers holding those RRP funds to rebuy Treasuries. They may like holding riskless Fed RRPs even more than they like holding Treasuries. So maybe not all of that $1.6 trillion will be available to absorb new supply. That’s where the problems start. When the RRP holders decide they’ve had enough. The slush fund won’t last forever. We’re tracking it closely and should know exactly when it is signaling a big problem.

https://liquiditytrader.com/index.php/2021/12/17/get-ready-for-a-slow-moving-but-perfect-storm/

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