US Fed to Print $425B for New Year’s — 3 Times Bitcoin’s Market Cap

[bone]

1. Clearly the Fed is promoting SOFR over FF and Repo; and

2. There’s a growing consensus that the Fed is targeting the wrong interest rate

I didn't say or suggest there is anything "nefarious" going on.

But I will point out your explanation is flawed in that "rolling" coupons does not "extinguish" debt. And not to be forgotten, Fed's Repo is ultra-short-term. The Fed does not keep the collateral when the repo term expires: the repo is reversed. The secondary market activity is unrelated in that way. Plus the Fed repo is not meant as "the" primary overnight funding source... Fed Funds rate, bank to bank overnight lending is!

 

[Tony Optionaro]

A top VIX trader I follow and who made shitload of money selling VIX puts is now afraid to sell VIX puts because of these repos.

Who is this bloke?

 

[guru]

Who is this bloke?

‪@ZeContrarian7
https://twitter.com/zecontrarian7
(though I might've just assumed he means repos when he was recently talking about fed pumping money into the system)

 

[ET180]

A top VIX trader I follow and who made shitload of money selling VIX puts is now afraid to sell VIX puts because of these repos.

I think you mean calls instead of puts. Short VIX puts would benefit from a repo-driven event.

 

[guru]

I think you mean calls instead of puts. Short VIX puts would benefit from a repo-driven event.

He is currently more neutral though usually short vol to some degree (shorting more on VIX spikes), while seeing artificially depressed volatility and therefore wouldn't advise to sell VIX puts like he did in previous years (he was playing it both ways, though selling puts doesn't need to be exactly long). Shorting some vol is always OK.
Here are some interesting tweets from him:

 

[nooby_mcnoob]

Fed vs JPM is a deflection.... neither the Fed or JPM can speak honestly without causing significant stress to the entire system.

The reason I say this is political is because Powell stated that they would have to lend to more lower income people. As we all know the more money you give to lower income people the more they spend so the fed is basically saying they r willing to reduce reserve requirements in exchange for creating the circumstances that caused the last meltdown meaning we may still be a half decade away from the next reckoning.

To me it is bullish.

 

[ET180]

The reason I say this is political is because Powell stated that they would have to lend to more lower income people. As we all know the more money you give to lower income people the more they spend so the fed is basically saying they r willing to reduce reserve requirements in exchange for creating the circumstances that caused the last meltdown meaning we may still be a half decade away from the next reckoning.

To me it is bullish.

How much money can low income people borrow? I suspect that they already have a lot of debt and banks won't want to loan to them anyway. Regarding the last decade, banks were willing to lend money in the form of cash-out-refinancing and home equity loans. Some believed that homes would not lose value. Some did not care, sell the loan, offload the risk, make commission.

 

[Pekelo]

Just imagine for a second that the US dollar was actually backed by something tangible, instead of just being a bunch of made up electronic numbers on a computer screen somewhere.

Like Bitcoin.

Here is a fu exnercise. Let's say a small country would switch to a national crypto mostly mining/holding the majority of it so they are kind of in control. Then when they need MORE money, they would just announce a national FORK.

I wonder what the crypto fans would say about that? The point is obvious, you can print more with cryptos too.

 

[Pekelo]

- The Federal Reserve System (also known as the Federal Reserve or simply the Fed) is the central banking system of the United States of America. It was created on December 23, 1913, with the enactment of the Federal Reserve Act, after a series of financial panics

Happy Birthday Fed!!

Financial panics before Fed: once every decade
Financial panics after Fed: once in a century

 

[nooby_mcnoob]

How much money can low income people borrow? I suspect that they already have a lot of debt and banks won't want to loan to them anyway. Regarding the last decade, banks were willing to lend money in the form of cash-out-refinancing and home equity loans. Some believed that homes would not lose value. Some did not care, sell the loan, offload the risk, make commission.

This will be the next generation of low income people.