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Repo Madness Clown Show: Fed Discusses Loaning Directly to Hedge Funds For Bailouts

(17:42)  http://www.youtube.com/watch?v=pOfCpqvzNew

Not only is a permanent repo facility still being discussed by the Federal Reserve, but now loans directly to hedge funds for Repo Madness. When will this clown show end?
Repo Madness Clown Show Far From Over: Fed Discusses Loaning Directly to Hedge Funds For Bailouts?

 http://www.youtube.com/watch?v=pOfCpqvzNew

6,312 views • Streamed live on Jan 14, 2020
WallStForMainSt

Not only is a permanent repo facility still being discussed by the Fed but now loans directly to hedge funds for Repo Madness. When will this clown show end?

Today, the Wall Street Journal reported that the Fed is considering loaning directly to hedge funds to help "fix" the repo problems with Repo Madness:

Hedge Funds Could Make One Potential Fed Repo-Market Fix Hard to Stomach
Federal Reserve officials are considering a new tool to ease stresses in the repo market
 link to www.wsj.com

Fed Considering Lending Cash Directly To Hedge Funds In Next Repo Market Crisis
 link to www.zerohedge.com

The Fed Is Going All-In To Keep The System From Collapsing
 http://investmentresearchdynamics.com/the-fed-is-going-all-in-to-keep-the-system-from-collapsing/

Are the Fed's Repo Loans Being Repaid by Wall Street's Trading Houses or Just Rolled Over and Over?
 link to wallstreetonparade.com


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Repo And The Man: A Half-Trillion Later
 http://seekingalpha.com/article/4316920-repo-and-man-half-trillion-later


The Federal Reserve Has A Repo Problem. What's That?
 http://portland.indymedia.org/en/2019/10/437842.shtml


US Federal Reserve Starts "Quantitative Easing Forever"
 http://portland.indymedia.org/en/2019/10/437855.shtml


Sen. Warren Grills Treasury Secretary Mnuchin On Federal Reserve Repo / Overnight Lending
 http://portland.indymedia.org/en/2019/10/437851.shtml


The Silence On Wall Street's Dark Pools Is Deafening
 http://portland.indymedia.org/en/2019/12/438027.shtml


The Fed Protects Gamblers at the Expense of the Economy
 http://portland.indymedia.org/en/2020/01/438141.shtml

homepage: homepage: http://www.youtube.com/watch?v=pOfCpqvzNew


The Meaning Of 'Repo' 17.Jan.2020 22:31

blues

To the common man or woman, like us, a 'Repo' is when some thug with a tow truck steals your car at 3:00 AM. But this not is that kind of 'Repo' whatsoever. No way near.

This is just a Wall Street gimmick where some fatcat secures an overnight loan after the 'market' closes with a guarantee that it will be paid back before sunrise. This is the 'Repo' guarantee. It's just another little churn-game to bilk a few more millions out of the stupid day traders. It's of no significance to any social activist, other than a sign of impending economic collapse (which everybody should be getting ready for).


"other than a sign of impending economic collapse" — Yes. 18.Jan.2020 13:37

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"which everybody should be getting ready for" — Yes.

( FOR THOSE SUCH AS 'blues' WHO CAN'T BE BOTHERED TO READ THE REFERENCES / WATCH THE VIDEO : )

Significance of the repo insolvency, is that the big banks are using their overnight-loan resources (which have "traditionally" been utilized to actually allow the economy to conduct transactions i.e. for all of our payments to each other/the store for goods each day) to play casino games with derivatives.

Also, as mentioned in the video and and articles above, it is suspected that one of the major Wall Street hedge funds may possibly have failed (<-- and is not being reported on by media or financial sources) in the past several months. Which could be an additional reason that the Fed has vastly increased its subsidization of the banks with cash since September 2019.

ugh 19.Jan.2020 14:53

Clyde

Yeah, not good. You don't have to be an econ wiz to see the writing on the wall at this point.

That off-grid cabin is starting to look real good right about now.

No need to run 20.Jan.2020 20:28

Erasmus

What relation does speculative wealth have with basic goods and services? That's one of the fallacies that we have been programmed to believe: That somehow the stock market is essential to the survival of the middle and lower classes, or a barometer of our quality of life. No, it's not. If the market collapsed tomorrow basic survival services will still go on. Without the artificial stimulus of fiat money in the economy people will default to more basic and organic ways of exchanging labor, goods & services. Inflation will be arrested, rent & food prices will go down and there will no longer be a need to import labor from overseas to utilize influx of artificial cash into the economy. We will also stop adding to the giant debt bubble that is growing every year by leaps and bounds with no thought of the future. Of course, the speculative wealth billionaires will have lost most of their fortunes and will be desperate to rebuild their wealth by any means necessary, it's in our best interest to stop them. It's time to reject the mantra of endless economic growth, it's destructive to the environment, exploitive and ultimately a dead end for humanity.

"somehow the stock market" ... — Erasmus, wait. 22.Jan.2020 00:14

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Erasmus apparently did not watch the video or read the posted articles.

Financial experts are here in agreement :
- the fiat currency central bank financed 'economic' system may indeed be on its last legs.
- Stock market, and many other capital markets, are not only exceedingly over-valued but are (like rest of global economy) leveraged into perpetual debt i.e. there is no determinant of fair price value for any of these markets except debt and debt-based fiat currency.
- Global debt of > $260 trillion now exceeds global GDP by 322 percent.
- None of the problems that brought on 2008 collapse were or have been 'fixed' (and that is by deliberate design).
- As noted in the originally-posted video and articles, not only are the WS banks now using their overnight-lending resources for Derivative casino games, but the Fed is now setting up for permanent QE directly to the big banks and hedge funds.


We're all in "forced" agreement with what you wrote, Erasmus. Because the out of control fiat money financialized elite have painted not only themselves but the rest of us into a debt fueled everything-bubble corner.

This isn't 'theoretical' or a politicized ideological rant anymore, from _anyone's_ (including the 1% and The Fed who are right this instant propogating across corporate mass media: "DON'T call it 'quantitative easing'"...) perspective.
It's real.

In other words, Erasmus : YES, we are on the brink of a massive widespread global reset to fair value in economics.


Financialization URLs, plus 'The Money Deluge' (2017) video:
 http://portland.indymedia.org/en/2020/01/438145.shtml#465346


Erasmus — watch these 2 video interviews (one which is less than 48 hours old) with financial market experts.
It's happening, NOW :


 http://www.youtube.com/watch?v=PP8yv9KvgUE

 http://www.youtube.com/watch?v=yGDEhS0y6g0

Repo Market END GAME Finally Revealed! (Can YOU Handle The Truth?) 22.Jan.2020 00:34

Jan 20, 2020

pretty good explanation (in context of 2008, and references work of financial analyst Jeff Snider) by George Gammon :


Not arguing 22.Jan.2020 09:47

Erasmus

-
How was I arguing or disagreeing with any of that? Your argument is well presented and I don't disagree in any way. I was just making the point that if the markets do collapse, life will go on regardless and in some way even be better for the middle and lower classes. The ones most will be the speculative wealth billionaires who have built stock fortunes without producing a damn thing of any tangible value. That's all I was talking about.

Yeah, understood — 22.Jan.2020 13:44

_

There indeed possibly could ? be a better way(s) of life for the majority of us in the eventual outcome.
and most of the analysts who have a pulse on what is going on with this repo lockup, agree with us/ you, Erasmus.

some of them do not, however :

Greg Mannarino, for example, believes that the Fed and global central banks are doing this "debt enslavement"-in-overdrive to ensure total disappearance of the U.S. middle class, and a new feudal order of uber-wealthy vs. slave-poor class.

i.e. Mannarino insists that the 1-Percenters will (as was the case in 2008-9) again _not_ be held accountable for 'crashing the system' and implement a way to 'bail themselves out' at the expense of the lower classes, <--who will be even further indentured after this latest debacle. Probably a new fiat-based blockchain monetary system (according to Mannarino and a few others).


anyway ^ at this point such "what will the 'new world order' be?" speculation, subsequent to the collapse/lockup event(s), is just that: speculation.

RE: (what Erasmus said) "markets do collapse"— 22.Jan.2020 14:18

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I think this is the reason I thought, Erasmus, you hadn't really seen the full point of what the observers are observing about the current situation.

What's going on right now is about far more than just "the market", "the markets" or --> "the stock market".

Stock market (as Mannarino and many others observe) is completely overvalued. (and see below RE: real estate)

Bond market is perhaps the most drastic indicator, right now, of the incredible distortions and imbalances in the global monetary system. Federal Reserve is pumping billions of dollars per week into not only the WS banks, but also *through-via* them in the big WS banks' buying up of debt in the bond market itself and thus keeping the 2- vs 10-year bond curve from becoming inverted. i.e. <--this is a gigantic (unprecedented in human history) rigging and propping up of the bond market. Aka the _debt_ market.

Real estate market — being heavily derivative of and reliant upon bank-lending and global debt — is the next most over-valued after the stock market itself. Of course, like some individual companies on the stock exchanges themselves, there are some properties which _do_ indeed have actual value and higher relative value than others in comparison.... Problem is that the overall housing market is priced so exorbitantly that it, like most of the current stock market, has no relation to price determination mechanism(s) whatsoever. Especially when one considers not only the involved properties but also the mortgage/banking agreements and notes since the 2009 collapse.

Consumer market / Consumer debt — in the United States at least, since Trump has been elected most of the corporate mass media outlets have been playing the "Happy Days Are Here Again" tune as though consumer confidence has never been greater. Retail sales though are largely based on _credit_(card) purchases. Credit cards are also being used by consumers to purchase basic necessities such as groceries, gasoline for their automobiles etc. It is indeed a credit(TRANSLATION: Debt)-based consumer economy. No one can afford to actually pay for anything / any service they purchase. American consumer savings e.g. even the amount of cash available on hand to them for an emergency expense are at all time lows even compared with, say, 2009.
The U.K. just reported a huge downturn in retail market employment.

Fiat currency-fueled "everthing"-bubble is the consequence of all ^ this (and more). Debt based (fiat currency, lending etc.) economic model is not sustainable and appears to be reaching the metaphorical 'brick wall'.

TL/DR : the 'economy' of 2020 is utterly and completely _fake_.
and still, a fiat currency debt based monetary system fuels it.... for the moment.

( re: ^ markets above) Corporate debt — 22.Jan.2020 15:04

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Also in assessing valuation of not only the stock market, but retail, industrial production and transportation :

Corporate debt is also at all-time highs.

For example Boeing (a company yes, currently in trouble). Up to their ears in debt. Stock valued at $300 should really be about $20/share.

and they are not the only example; any overleveraged/in debt corporation should be similarly valued. In real terms.

(can get into other minutiae about stock values, earnings/share etc. with regard to the stock market and corporations there in particular but) Corporate debt is a gigantic underrecognized factor in fair price-determined valuation of not only the stock market but also much of the economy and economic activity, velocity of money etc. more broadly.


Market is fake, as is the 'economy' today.

Repo END GAME 2.0 (George Gammon's Follow-Up to 22.Jan.2020 00:34) 22.Jan.2020 15:49

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Follow up video to George's from yesterday :
 http://portland.indymedia.org/en/2020/01/438151.shtml#465367

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Repo Market Bailout: TERRIFYING Unintended Consequences Revealed!

29,652 views •Jan 21, 2020

Repo market insanity has negative impacts &#128073;YOU NEED TO KNOW! &#128072;This follow up to the repo market "end game" video yesterday (see link below) will blow your mind! We know the Fed will most likely have to take over the repo market and set up a permanent repo facility or standing repo facility. This won't happen in a vacuum, it will create tremendous moral hazard and unintended consequences. Will it create inflation? Deflation? economic collapse? or a dollar crisis? The Fed can't print billions of currency units and inject them into the repo market without serious unintended consequences. But very few people understand the repo market well enough to explain why it's not a good idea to micro manage the repo market.


in Gammon's latest Repo 2 ^ video, he cites economist Richard Werner — 22.Jan.2020 16:04

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see this last-year PDX IMC post :



 http://portland.indymedia.org/en/2019/01/437047.shtml

Princes of the Yen: Japan Central Bank Documentary

(1:32:39)  http://www.youtube.com/watch?v=p5Ac7ap_MAY

This is film about the power of central banks.

Economist Richard Werner's book 'Princes of the Yen' was a number one general bestseller in Japan in 2001. The book covers the monetary policy of the Bank of Japan specifically and central bank informal guidance of bank credit in general.

The Japanese version of 'Princes of the Yen' was released in 2001 and the English version in 2003. The film itself is 80% based on this book, but also contains additional research and sources, including discussion of contemporary EU monetary policy.

Richard Werner  http://en.wikipedia.org/wiki/Richard_Werner has viewed and approved this documentary rendition of his work.