Still think TITNC3: Return of the Iceberg was peak

Anyone been watching the AMC setup ?

If AMC and GME continue to run together like they have been
Looks like this week is gonna be

now the question is
Will it be us or them



edit: the fed reverse repo stuff also amuses me

 

Took a drive out to stampede reservoir. Did about 50 miles offroad today.

Nor cal is screwed water wise

 

The lake you got that out of is a special place. Having the start of Coyote about 3 miles from my house has me pretty spoiled. lol

That's bleak. Not 2012 bleak but close.

 

@kairo

Did you say the reverse repo data has been debunked upthread? If so, can you link that.

Just doing a little digging on FRED and the volume is historic. $547.8B as of Fridays close. This is straight up data from a very trusted source. That's a whole bunch of quick cash the Fed handed out.

https://fred.stlouisfed.org/series/RRPONTSYD

 

Trey trades did a video on the reverse repo today
Hold on
I’ll link for those interested


https://youtu.be/pNWu2D-k2KA

 

Not sure what you're referring to exactly? No grand conspiracies about the reverse repo other than that it's at an all time high. Its not connected to anything in the market that I'm aware of, aside from tangentially.

Reverse repo, not fed handing out cash. Fed handing out collateral. Banks have too much cash on hand.

 

It's directly connected to market liquidity. With it being that high it could be a sign that some very large firms need a whole metric shit ton of cash. Why? The economy is recovering, the markets are at, or close too, ATH's and people are back to work. Why the hell would primes need that much firepower under current economic conditions?

 

Collateral not cash (t bonds) you've got the repo markets flip flopped. Reverse repo is when banks have too much cash and need treasuries to balance their books. Good chance a lot of the treasuries are rehypothecated too.

"Naked" collateral. It's a mess

 

They are just parking cash as they don’t know where to put it. You could come up with lots of theories as to why.

 

To a bank, cash is a liability. Banks want debt (loans issued) which go on their books as assets. Yes, it's weird, but that's the way it works.

There's way more into this than I'm smart enough to understand, but what I gather is a couple things:

A) Big banks are holding cash because they see the same things we see coming. Bad news is, they can't just hold cash because it's a liability. That's why they do 24 hour swaps for collateral.

B) Banks that loan their collateral to hedge funds have gotten in just as much trouble as the hedge funds they loan to. Ergo, they have to keep the swaps going or else they implode basically overnight.

C) This is the last chance of just a semblance of keeping the financial system normal. The reverse repo rate is 0%, so nobody is making any money on these swaps and the whole .gov is frantically trying how to figure out how to keep the economy from collapsing.

TL;DR. 2008 but probably much worse.

This guy is good (if not a bit proud of himself), and this video is pretty recent: https://www.youtube.com/watch?v=vqxNTRtEvXg

This is a good primer on the reverse repo markets: https://www.youtube.com/watch?v=fttA-rNRYG4

 

I'm going back to the garage to drink beer. I'm not supposed to be thinking about global finance on Sunday evenings. My doctor says it's bad for my blood pressure.

 

https://bpi.com/the-overnight-reverse-repurchase-facility/

 

Yea, I’m saying someone could use this info to suggest a crash is coming. Or it’s as simple as it’s the cheapest option for finding someone to hold your cash.

 

Yah I don't understand it aside from the basics well enough to make any edjumacated opinions. From what I've read though, It's fine until you compound a bunch of other problems on top of it, and then you have a big "whoopsie" problem. Data seems to point at the "whoopsie" stage right now with more participants drawing ever more collateral.

 

Since when has a .01% return ever been something primes even think about. The article I linked has some interesting data about the possible why/

 

I mean
Ultimately I’d hope that if the royal “you” has their bills up to date
And some decent sized savings of food/assets is set aside this will be something we can weather

or
Street rat dinners inbound

either way
556 prices will be stable

 

Yep. Be prepared but not afraid. Don’t miss the opportunities now by waiting for a big dip. But have a plan for the opportunities that come when things go to hell.

 

I'm just gonna go 4 wheeling and take pictures of low reservoirs and shake my finger at California

 

Well I’m doing stupid overnights tonight and tomorrow night. 8pm-4:30am instead of my regular 3:30am start time. I guess I’ll be getting home and going to sleep before the markets even open and miss all the fun.