The unironic key to how the repo market will kick off the financial crisis

[Anonymous No.16942392]

https://www.zerohedge.com/markets/944-trillion-reasons-why-fed-quietly-bailing-out-hedge-funds

Some other anon posted this in passing in the coronavirus thread.

Why the FUCK isn’t anyone talking about it?

[Anonymous No.16942397]

>zerohedge
bye

[Anonymous No.16942489]

>>16942392
zerohedge recently celebrated the 10th anniversary of the last time they got something correct.

[Anonymous No.16942501]

Based gonna tell my parents right away

[Anonymous No.16942534]

>>16942397
>>16942489
>zerobraincells
Hi grandpa. Remember what I told you about getting on 4chan? if you’re going to shitpost in my thread, please at least read the fucking article. Otherwise go to bed. And please change your diaper this time, we’re almost out of clean sheets.

[Anonymous No.16942535]

>>16942397
>>16942489
Ok brainlets.
https://www.wsj.com/articles/hedge-funds-could-make-one-potential-fed-repo-market-fix-hard-to-stomach-11578997801
> muh zerohedge reeeeeeee it can’t be real.

[Anonymous No.16942582]

Seems plausible. Can someone with a bigger brain walk me through this problem

[Anonymous No.16942603]

>>16942534
It’s not reliable no matter how plausible their article seems

[Anonymous No.16942612]

>>16942392
Jp morgan owned the Fed. Now they can hold the entire financial system hostage for power and free money. Funny how the all powerful central bank will fold to Jamie Dimon

[Anonymous No.16942631]

simply do not care until it happens now fuck off

[Anonymous No.16942634]

>>16942397
Is there a site like zero hedge but with out how colossally stupid and wrong they are? Every time they write/post an article on something I know about I find myself cringing at how factually inaccurate they are.

[Anonymous No.16942646]

Post SPY put loss.

[Anonymous No.16942699]

>>16942603
Does the article say the following?
>clearinghouses have compressed 11x world gdp (isn't this kind of like LN but derivatives?)
>if a clearinghouse goes bust, banks would assume the cost of recapitalization
>therefore a cascade of bankruptcies would ensue if a clearinghouse failed because banks would not have the liquidity afforded by compression?
I think this argument is pretty weak.

[Anonymous No.16942810]

>>16942612
This.
It used to be Goldman, but it appears JPM is the top dog now.
The only question is who does JPM want for president. Once you figure that out you’ve got your trades set up for most of this year.

[kihohuim No.16942857]

reminder zero hedge is owned by ABC jews who told their readers there would be an immenent stock market doomsday every week since QE started. Its the jim cramer of edgy stock market theft scheme propoganda

[Anonymous No.16943400]

this is good, thanks

[Anonymous No.16943517]

>>16942699
what's weak exactly?
>Secondly, banks are now deeply capital constrained, and at the start were very reluctant to move old trades to a centrally cleared model. This problem was resolved through a carrot and stick approach. The stick is uncleared trades carry a capital charge, and the carrot is that the exchanges offer very attractive "netting". What netting means is that banks can give details of all their trades to a third party, and any circular trades can then be netted off thus requiring less margin. LCH claim to have done a quadrillion of compression trades or netting in the last year, this is more than twice the notional of all outstanding interest rate derivatives.

if a clearinghouse goes bust, trades can't be netted against each other and so additional capital needs to be posted

[Anonymous No.16943587]

>>16943517
Jesus people are dumb. wheres the sudden need for cash coming from that cannot be countered through intervention either by the fed or other party? the only reason crashes happen is due to multiple events happening at the same time that cannot be countered because both events were not planned for at the same time.

[Anonymous No.16943609]

>>16943587
maybe tell the banks they are dumb too
>Major clearinghouse members (including JP Morgan) appear to be seriously worried about a clearinghouse problem after the default by a member of Nasdaq Clearing AB prompted this [1] response.It is asking for the clearinghouses to raise more capital, and to setup a resolution scheme in case of bankruptcy. They are also seeking to limitthe ability of clearinghouses to draw on the resources of its members to recapitalise clearinghouses. The default by a member of the Nasdaq Clearing AB in Sweden left remaining members unhedged. This made resolution more difficult as the surviving members were asked to bid for the defaulting member’s position as well as recapitalise the clearing house
https://www.goldmansachs.com/media-relations/press-releases/current/multimedia/ccp-paper.pdf

[Anonymous No.16943808]

>>16942392
because we have been talking about it since repo repopped months ago
thank you for linking the ZH from last week rakesh

[Anonymous No.16943909]

>>16942397
>>16942489
what is with all these morons lately

[Anonymous No.16944037]

>>16943808
That chart Kek

[Anonymous No.16944506]

>>16942646
You mean the TSLA profits I’ve been taking the last 2 weeks?

>>16943808
You mean yesterday?

>>16943909
Idk man. The JIDF must be out in full force to try to smash FUD.

Probably means the situation is actually getting dire