Recent content by basis

1. CFC used BAC to access fed funds window? Huh? There's so much shit in that statement I can't even see clear to correct it. 2. BAC was not allowed to hedge. They're hurt.

The world can usefully be divided into two categories: those who read The Economist, and those who do not. Re: bearishness. I don't really think it's that... they're not traders after all. Besides, it's pretty obvious that the more experienced you get the more you see that markets ARE...

Look, I'm all for letting things fail. If you don't see that it's completely irrelevant to what I'm saying, I'm just wasting my time. In fact, I'm almost certainly wasting my time. Every time I come back to this site I'm absolutely baffled at the ignorance (not directed at you personally)...

Algorithm: I hope you're right. So far, I think the guy's a clown.

You assclown, I trade my own money in the same shit as everyone else, from home, every day. My USD are getting punished the same as everyone else's. I just know a fucked-up situation when I see one.

Gears: Interbank lending market. Almost totally dependent on trust. Sand: The current culture of fear and distrust. If the interbank lending market doesn't work, it serves as a massive tightening of credit. Grease: At least partial removal of the penalty for using the discount window...

1. Of course the Fed should be abolished. But that's not an option on the table, as far as I can see. 2. The issues with the Fed adding liquidity have nothing to do with yesterday's action in the indices, except for the follow-on effect downmoves have on cash balances of natural longs...

Sure, but it's not like it operates in a vacuum. Every morning funds open tight because European banks are scrambling for funding. And I'm scared to death of what "other means" are... but Dec FF futures certainly are expecting something.

Trefoil, then why leave the discount rate premium at 50 bps? They could have cut to 25 over and then moved it back on 1/30. Such a layup move, imo.

I'll let the fact that you used Hungary, China, and the Czech Republic to make your case speak for itself.

What inflation? For most finished goods, producers can't pass through price increases because others will bite the bullet. You think Chinese goods are going to get more expensive here? Bullshit. They'll just eat the loss of margin. If they don't, they stop selling stuff. If they stop...

If you don't see that rates need to be much lower, you're either clueless or not paying attention. It has *nothing* to do with saving asset markets of any kind. There's sand in the gears of the economy, and the only way to clean them is to add grease and let 'em get worked out. Look at the...

The discount window is where banks can borrow directly from the Fed; as of today they can borrow at 4.75%, with the target for *interbank* lending @ 4.25%. Basically, if you're a bank who needs overnight cash, and you can't get anyone to lend to you, for whatever reason, you can go to the...

Fed funds futures settlement is based on calendar days. Weekends and holidays use the most recent day's rate. The basic 3x2 analysis is correct. However, the trade is essentially betting against the premium in the December contract. The market is scared of a Y2K situation where the Fed...

HAHAHAHAHAHAHAHAHAHA *inhale* LOLOLOLOLOLOL O M F G You shouldn't be allowed to participate in the capital markets.