The Reichsbank will have its revenge on the ECB.
I guess it's one of those things you can never explain
Who do you think is more capable of driving a runaway train?
This group in 1921:
Or this group today?
I'm starting up a new Finnish black metal band called "Blackstone Defaults.”
The Fed balance sheet actually went UP $2.6 billion in the past week, and we’re all very proud.
Also, the national Case-Shiller index is still up 5.8% YOY, and the Fed still holds $2.6 Trillion more MBS than they did in 2008.
You can see the fear in Scott’s eyes.
Crypto bank Silvergate to shut down in face of market turmoil
Silvergategate: The Collapse of Silvergate and the Future of Cryptocurrency Banking
You might want to bookmark this link.
I spoke to James Aitken recently and we were talking about this. And he said, “Look, what I’ve been saying to people is, ‘What would 7% Fed funds rate mean for your portfolio?’” And he pointed out to me that he’d said a year ago, “What would 4% Fed funds mean for your portfolio?” And people were like, “We’ll never get there because the system will break.”
I like to point out that, for many, the system broke years ago:
I wonder if ending the carried interest loophole will survive budget negotiations…
Will 0DTE Cause Gammageddon? With Mike Green and Craig Peterson
The risk that exists as always in options is that you can’t actually hedge that exposure. An instantaneous gap of a large quantity, given the volume of these that are outstanding and the open interest that stands there, could create significant risks for the actual exchanges and market makers themselves, setting up conditions that look more like an AIG failure than anything else.
- Mike Green
Well maybe these type of things should be banned, if they can create such systemic risk (which the taxpayer will ultimately be on the hook for).
We all remember (actually, almost no one remembers) who really got bailed out in Geithner’s AIG bailout…
The events of the following Monday showed that the Fed’s New York trading team was essentially flying blind in the age of ZIRP. This meant that the entire leadership team of the Fed, including Jay Powell, was also flying blind. The central bank had transformed the financial landscape by swamping it with money and in doing so had destroyed one monetary regime and replaced it with a new one. But there was no reliable instrument to measure the terrain of the new regime. This fact was made a stark reality on Monday, when the repo market blew up. The resulting market crisis almost became a full-fledged financial crisis, at a moment in history when the markets were supposed to be stable and in good health. The only reason that this didn’t happen was that the Fed stepped in, almost instantaneously, and initiated a $400 billion bailout. This bailout was unprecedented, and it benefitted a small group of hedge funds that had essentially hijacked the repo market and used it as a vehicle to make risky bets. The Fed saved them from the consequences of those bets. But maybe the most remarkable part of the bailout is that the Fed did it without much notice. A $400 billion emergency cash injection was no longer news. The Fed described it as a matter of normal maintenance.
- Christopher Leonard, The Lords of Easy Money
Nice little garbage-stock rant I found via the excellent site Credit Bubble Stocks:
Remember that the next time someone tells you to just buy an index fund or a mutual fund. Index funds are propping this bullshit up, just like they’re propping up the fact that Yahoo has a “sustainability” column. I’m sure the list of bullshit the index funds are propping up is very long now. While the concept of an index fund is sound (average many things together to lower your risk), the entire idea is nihilism unless some thought has been put into the index components. Think about it: how is Capitalism supposed to work if you just mindlessly buy whatever index some knucklehead tells you is an index? You could at least remove overt frauds like these. VCs are the real culprits though. Their hype machines are how this nonsense gets started.
Thank you everyone on Twitter.
Avi: My friend Azim was shot down yesterday right here. Died at my feet. And here you are, bringing life to the world. I never married. Never had a child. Because I'm a soldier. Always a soldier. I go from one battlefield to another. It's what I do. It's what I am. But you? You're not like me.
Franklin: How'd you see that?
Avi: First time I met you I said to myself, this young man can do anything he wants. And that's the biggest curse a man can have.
Franklin: A curse?
Avi: I have no choice. I do what I am. But you? You could do anything. You could be anything. A teacher, a businessman, a rabbi...a drսg dealer. It's all in you. It all wants to come out. I go from war to war. Whereas a man like you has the war inside.
Please - left and right - let’s stop with this “national divorce” crap. Again, people have lost their minds. From Sept. 2020:
Cry Me an Atmospheric River
Honestly, many like myself are THRILLED to see you here (more) again. I know the subscribers may be much lower than Twitter, but you also get drowned out by so much noise there. For people like myself that get to take a moment and READ in longer form what you are putting out, it is fantastic to have you adding here more. Your message simply sticks more. And... its easier to share with others to get a deeper look than a short tweet (no matter how pithy)
Great to have you here! Much appreciated!
[I recently gave a presentation to a group on the many dangers of inflation. Your material was an honest inspiration to share the word. It may not be much, but at least another ~30 leaders in my community (business people, chamber of commerce, etc) got to hear the message. And I’ll be giving it to more shortly]
Thank you again for what you do!
Never having been a twitterite (have read certain folks tweets, however), great to see you back here Rudy. Nobody pieces together, in such a intelligently humorous, manner this peak insanity. It amazes how long the process takes to revert to some mean of sanity. This makes me think that the longer the arc of the top (societal, financial, cultural, political etc.) the unwind is going to be absolutely crushing. Obliterating all sorts of 15 seconds of fame thinking, which will leave many clinging to the flotsam of western civilization.