QE vs Repo 1: The Simple & REAL Reason For Low Rates
What are the true consequences of QE? More frequent liquidity events, short term rates at 0%, dysfunctional repo, and a more fragile system; that’s what.
Did QE Make Banks Say No To More Money? 3
Large US banks are turning away deposits from their biggest corporate clients. This comes with second order effects that can ripple through the broader system.
Did QE Make Banks Say No To More Money? 2
Why would a bank turn away deposits? Before we can answer that, we need to understand what deposits are to banks, and how they are related to bank reserves.
Did QE Make Banks Say No To More Money? 1
Big American banks are turning away large corporate deposits as QE and regulatory changes have left them with too many reserves. What does this all entail?
What You Need To Know About The Fed’s Reverse Repo 2
With markets & leverage at extraordinary levels, sky high reverse repo takeup is another sign that the financial system is vulnerable to shock. Caveat emptor!
What You Need To Know About The Fed’s Reverse Repo 1
Takeup of the Fed’s Overnight Reverse Repo facility has surpassed its Covid high, reaching ~$300 bn in the last 3 weeks. Why the sudden & dramatic increase?
Data Interpretation & Subjectivity
Data is often hailed as objective, which gives the practice of collecting and analyzing it legitimacy. Interpreting the data though, is far more subjective.
The COVID Commodity Supercycle Part 3
What if demand is due to businesses confidently investing in future capacity? Is this enough to drive a new supercycle? If not, what could possibly do so?
The COVID Commodity Supercycle Part 2
The same productive capacity that was built to meet elevated levels of demand also sows the seeds of the supercycle’s end. Is this what happened with Covid?
The COVID Commodity Supercycle Part 1
Talk of a commodity supercycle has risen to a fever pitch. This is based on higher prices across a broad range of commodities. But what is a supercycle?
