With Reverse Repos, The Fed Is Now Trying to Clean up Its Own Mess
There’s been chatter aplenty about the surge in the amount of reverse repos…
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The “Helicopter Parent” Fed and the Fatal Crash of Risk
All the risks generated by gambling with trillions of borrowed and leveraged dollars didn’t actually vanish; they were transferred by the Fed to the entire system…
Continue readingBiden’s Colossal Budget Confirms Trump-Era Mega Spending Will Continue
There’s little reason to assume the Democrats will depart from the GOP trend…
Continue readingRepo Madness 2021: Same Collateral Used 7 Different Times By Hedge Funds?
More details are coming out about Archegos and the growing repo and collateral problems. The Fed is going to have to do more insane amounts of…
Continue readingIf This Isn’t A Blow-Off Top …
We’re witnessing the greater fool theory taken to its logical extreme. Unfortunately, since a national government doesn’t have money of its own…
Continue readingLow Rates and Limited Liability Mean Hot Markets
The taxpayer is backstopping more credit risk than ever…
Continue readingThe Bailout Binge Begins
President-Elect Biden just proposed that $10,000 of student debt be forgiven for each borrower. This sounds generous but is actually just the opening bid in a…
Continue readingCuomo: NY Needs To Raise Taxes To Offset $8.7 Billion Deficit Because Of The Pandemic Lockdowns He Ordered
New York would be forced to lay-off thousands of workers, increase taxes, fares, tolls and government borrowing with “devastating” consequences if…
Continue readingFederal “Stimulus” Mostly Exists to Help Wall Street
The truth is when it comes to bailing out Wall Street, those who support bailouts hardly limit themselves to loans…
Continue reading“The real danger comes from massive state dependence”
Can this all be reversed once the crisis is over, or has the Rubicon been crossed?
Continue readingGovernment to Sedate the Economy with More Stimulus
200 years worth of debt were added in 2020 as Trump outdoes Obama’s deficit in only one term…
Continue readingThe United States Of Banana Republic: No Comment Needed
This screenshot from the mainstream financial press says it all…
Continue readingCovid Is Toppling America’s “Points of Failure” Dominoes
Sorry Fed, it’s too late. The dominoes are already toppling, and every point of failure is being exploited by the catalyzing effects of Covid…
Continue readingMass Layoffs Coming One Way or Another
“…massive layoffs of city and state workers and turmoil in the bond market. That kind of thing alone is enough to send the U.S. back into…”
Continue readingThis Is How A State Goes Bankrupt, Illinois Edition
Even in the absence of a pandemic lockdown, mass defaults on state and city obligations would be inevitable. Now, defaults are coming next year…
Continue readingLIBOR Shift Will Crash The OTC Derivatives Market?
Think the OTC derivatives market will be allowed to fail without more bailouts and rules changes by the Fed, US Treasury and big banks?
Continue readingBig Tech Censor Storm Hits Election Season As Economy Continues To Flounder
The economy continues to flounder. Unemployment filings got closer to 1 million with 890 new filings this past week. States like Illinois are…
Continue readingCountdown to Mediocrity: Why Gold and Silver Can Protect Your Wealth
A booming stock market & subdued precious metals will be viewed as beneficial to Trump. The handlers believe that “optics are everything” in the final days before…
Continue readingHow We Institutionalized Incompetence
And so we face the ultimate irony: ‘bailing-out-everything’ destroys the entire rotten system…
Continue readingWaiter, This Isn’t The Collapse I Ordered
This all feels much different than what we expected…
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