short wrap up: I am sure you heard about the reverse repo facility beeing used for staggering amount of liquidity deposits. Banks use them to either get collateral or make a quick buck. Thing about the quick buck is - it is marginal while inflation is skyrocketing. So the question is why do they need the collateral. WSB theory has it banks effed up again, doing the same stuff as with MBS in 2008 but also mixed up with consumer and corporate loans this time. Sound theory so far. That we are in a *everything bubble* is not news. But everyone is wondering when it's starting to pop finally.
WSB says its gonna happen on the end of Q3. What do you think about that shedule, guys? Personally I lack the imagination on how they want to delay the pop past the next annual bank stress test season.
WSB says its gonna happen on the end of Q3. What do you think about that shedule, guys? Personally I lack the imagination on how they want to delay the pop past the next annual bank stress test season.
