Repo Market gone on Steroids -- The Mother of all Financial Crisis Explained. REPO Madness is beginning to make the 2008 financial crisis look like a walk in the park. The FED is backstopping the panic for liquidity in the overnight REPO market with more than $1 Trillion. The panic money printing is happening NOW. With all the misinformation circulating around about this Repo Crisis, one should question, can they really be that dumb? This is truly the Mother of all Financial Crises, which will affect the whole nine yards of what it touches. This will make the 2008 financial crisis look like a trial run. There is no politician who will come up and talk about this crisis, nor will they brave to even ask pertinent questions for fear of what will be uncovered. This Repo Crisis is just part II in the lead-up to Big Bang that nobody apparently understands is currently unfolding. This is the Sovereign Debt Crisis on steroids. Whatever they could have done wrong, they have done with absolute accuracy. The expected losses for institutions will range from 40% to 60% of assets. Whoever is caught holding will not be bailed out this time around. This is the combination of the 1998 Liquidity Crisis and the 2008 Financial Crisis. So hang on to whatever you can grab ahold of. You will need it for this one. Welcome to The Atlantis Report. Ten years of QE created a financial system that depends on the Fed monetizing debt in massive quantities forever; so that billionaires could swap dollars to skim profits from QE Forever. Unsaid, but likely, is that since both the ECB and BOJ are deep into endless QE, then the Fed needs to get in step. Coincidentally, there's an FOMC meeting in play just in time to save the world from the financial crash these billionaires will cause if they don't get free money under their terms. Banks have oodles of US Treasuries debt that need to go at a profit, and the Fed is the only buyer dumb enough to buy it, so the banks earn a profit. REPO is just another banking Ponzi scheme that works with the FED's banking Ponzi scheme. The Fed feeds the monster markets, the hedge funds, the algorithms boyz, and the high-frequency traders. Once an institution to be there in a pinch, they create webs of financial complexities and central plan, preventing free market forces and normal market cycling that flushes excesses. They feed the pot when the pot is about to go empty. They remove the discipline of the market place. The FED needs to print more because the universe will collapse without the speculator bailout. I say F the speculators and end the FED. This is the most significant theft of all time. Why call it banking when it is just plain stealing. The Bankers own the world, and they own you too. Take it from them, but leave them the ability to print money out of thin air, and they will buy it back the next day. This REPO frenzy that we are witnessing was designed by the big banks as a trap for the large hedge funds. The Forex swap market is dying. And the banks want the large hedge funds to take the hit. It makes sense that someone would try to paint this as a GSIB issue when, in fact, it has nothing to do with it. It's all a big boys' game of musical chairs now where Citi and JP Morgan are walking in circles with Citadel and even Blackrock. The Forex swaps were the reason for the Fed not being able to target even lower rates because of the required liquidity needs. Now, as all foreign participation has dried up, it has become a war between banks and hedge funds. The Fed will do what they always do, back themselves with new rules biased in their owners' favor, so don't wait for QE but rather new guidelines for collateral definitions. Erasing the line separating reserves from collateral, they will kick the can for themselves while hedge funds are being trapped. Once the Fed introduces new reserves and collateral guidelines, may be relaxing the eligibility criteria also for corporate and municipal bonds. They will have opened up new swap line funding avenues for the banks but not for the hedge funds. This should not come as a surprise to anyone. It's how banks have always operated - if they are somehow not the biggest winner, they simply change the rules until they are. The truth is, dishonest players are saying, "give us what we want, or we'll blow you up." There is no internal or external economic shock to explain the change in the behavior of users of Repos. That means those users decided to take planned action, a strategy, to 'break' the repo market. That means regulating that market is either inadequate and/or not being enforced. We really need to regulate that market. Being 'held up' by manipulators and speculators is certainly, not a good thing. A different set of eyes needs to look at this and identify the perps. The strategy seems obvious — profit off-market turmoil. We are going to buy put options big, and we're going to sell naked call options big, then crash the market by 'breaking' the Repo operation. The more details I read about how things actually operate in the underbelly of this corrupt system; the more it becomes apparent there is so much sleight of hand; distraction; intermediaries; multiple layers of re-hypothecation; 3-card Monty; musical chairs; rube Goldberg-like non-sense; going on that no one really understands how it all works. This means when this thing finally does implode; all the so-called experts will be wringing their hands; spewing excuses like no one could have predicted this; and will have absolutely no idea how to recover from it. The only thing we can be sure of, the banksters will be bailed out, and the plebes will foot the bill. The FED is pumping and printing. Is there a problem with the Fed buying all the assets using monopoly money? Aside from the hyperinflation and all the laws being broken. It seems like they get all the assets, and we get all the debt. The FED may never become insolvent, but that doesn't mean it isn't Bankrupt. When you give digital zeros to banking institutions, you are a criminal organization. The fractional reserve system is Fraudulent. The FED's REPO market is killing us all. Slowly, slowly, slowly. It is the back end of a highly politicized Fed attempting to force an economy to do what it wanted it to do, and we will all pay for decades for the ignorance or arrogance depending on your point of view. A perfect example of insanity being the impossibility of reason. These bankers; hedge funders, guru investors, etc. Don't give a damn about what's going to happen to Americans or the country when this Ponzi scheme implodes and takes down every aspect of the economy. They only care about returns and the short term. Who cares about the national debt or the future young people who will have to deal with this fallout. The politicians are all too busy diddling back and forth over Trump to even bat an eye at the financial ruin that is brewing on Wallstreet. Yet ALL of them are going to claim nobody saw it coming, and they will ALL have their grubby hands out for a government bailout. And we will rinse and repeat this nonsense until America doesn't exist anymore. Reserve banking; the amplifying banking model has proven to accelerate profitability significantly. The model works great with ample cash liquidity. When cash reserves are thin, because of leverage, the risk increases exponentially. How long the model can keep working without blowing up the money markets again,is anyone's guess. Can the swipe of a computer key continue to keep everything together?. With my understanding of the intricacies of these markets and their dynamics, I could not second guess this current situation by a long shot. There Is Definite Hanky-Panky Going On”: The Fantastically Profitable Mystery of the Trump Chaos Trades. These US Markets are for suckers only. And being used by the corrupt US elite super-rich to get richer and richer ; while the middle-class in the entire world gets poorer and poorer and disappears. This is corruption on steroids. And of course, are being promoted and supported by the FED; SEC; White House; US Treasury; and so forth. It is the most significant transfer of wealth on the planet, and it happens every single day. The short coles notes of this all is a. There is not enough liquidity on the planet of willing buyers of government debt that includes euro banks leveraging their reserves for a 1.5% T-bill over a 0% euro coupon. b. This level of Zimbabwe type monetization should, in a year, equal expansion of money of $6 Trillion if they do not stop; Against GDP of $20 trillion, it is between 20-30% inflation. c. Expect excess reserves to flow to the stock market, which has currently averaged 7% per year. So if the market goes up 15%, but price inflation is 20%, guess what you still have lost 5% of net worth. and, d. Housing ironically will stall then fall as banks realize that MBSs or mortgage-backed securities are high risks, leaving only the federal reserve as the last buyer. Things are getting quiet. Too quiet. So equities will nosedive to increase liquidity, the trouble is the losses by some banks (as financial stocks sink) will exceed their minimum reserves. So you have QE-Infinity, but the Fed and the US Treasury is still going to have to bail them out. At least in the short run, until they get enough of the extra liquidity to rebuild their cash reserves. By estimation, the Fed balance sheet will increase beyond 85 billion a month (QE3) probably by a factor of 1.5 even during the Not QE phase - perhaps 120 or 125 billion per month. They might not even stop there - they might go full speed and start pomo on equity purchases in the Dow, S&P, Nasdaq. At what point do folks get that light-bulb - that the Fed is working for the big banks of the world, it isn't working for Americans. It is inflating asset prices, while also bailing-out zombie banks, and doing so primarily by monetizing sovereign debt. Waiting for the blocked artery and ensuing heart attack. The market is freezing up because the so-called collateral to support repos is garbage, and everyone knows it. There are millions of zombie mortgages held by banks without a mark to market write-down where no payments have been made in years. Banks are protected by accounting rules, but the collateral is still garbage. Circling the drain. They know what they are doing. #1. Define money as debt and blow the worlds biggest credit bubble. #2. When the bubble reaches its apex, pop the bubble, leaving the debts while siphoning off the money supply. #3. Leave the masses in tens of trillion of dollars in INEXTINGUISHABLE DEBTS, all while pretending to be clueless. #4. Asset strip Earth and claim ownership over it as the Money Power Monopolists become de facto Earth Emperors. You really can't wrap your mind around reality? Oh, and they are so stupid, they made YOUR HOME AND VEHICLE COLLATERAL FOR THE GOVERNMENT DEBT. BUT NOT THEIRS! Go ahead, ask your property taxing authority whether this is true, and demand a legally binding written and signed letter. Or cower from the truth and play "pretend they are dumb and not evil because evil would scare me!" This was The Atlantis Report. Please Like. Share. And Subscribe. Thank you.
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