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/biz/ - Business & Finance

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54510201 No.54510201 [Reply] [Original]

Dollar for dollar.

Unless $ returns from money markets to deposits (i.e., Fed cuts rates), those temporary Fed liquidity injections become permanent

>TRANSLATED FOR RETARDS:

>When people move their money from bank deposits to money markets, the Fed steps in by adding more money to the system to keep things stable. This is supposed to be temporary. The expectation is that people will move their money back to bank deposits eventually.

>However, if the Fed doesn't lower interest rates, people may not move their money back to bank deposits. In this case, the extra money the Fed added can become permanent, leading to risks like inflation and financial instability.

>> No.54510237

>>54510201
Money that goes into money market funds ends up in the bank account of the borrower.

>The expectation is that people will move their money back to bank deposits eventually.
Not necessary. It ends up as bank deposits regardless.

>> No.54510242

>>54510201
That's just the 2020 election graph with colors inverted

>> No.54510245

it's over

>> No.54510247

>>54510201
>The expectation is that people will move their money back to bank deposits eventually.
This is pants-on-head retarded. Why would anyone move their money to banks for any reason right now? You won’t get any interest even at these high rates, and they’re all totally insolvent.

Of course the liquidity injections are permanent. Is there even a single person who is gullible enough to believe this was temporary? This was always a pivot on the fight against inflation. Lower rates will cause more inflation too.

>> No.54510293

>>54510247
Total amount of money in the system hasn't changed, so it's not inflationary.

>> No.54510444

>>54510293
I kneel to the maestros at the Federal Reserve.

>> No.54510666
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54510666

>>54510293
>otal amount of money in the system hasn't changed

>> No.54510693

>>54510666
See the OP. Fed's balance sheet hasn't expanded more than bank deposits have shrunk.

>> No.54510763

>>54510693
in real terms the money supply will increase because illiquid deposits will become liquid dollars. it's like a vested
token unlocking, sure the overall supply is the same but the token is now back in circulation and the holder could sell instead of relocking

>> No.54510809

>>54510201
for many years the only thing ive done is move wage money into bitcoin. fuck bank deposits.

>> No.54510841

>>54510201
Ironic because the money markets themselves are at risk, they're even more fragile than a normal bank's balance sheet

>> No.54510850

>>54510201
What's money market exactly

>> No.54510880

Looks exactly like the us election ballot chart lol

>> No.54511574

>>54510242
Fucking kek. True.

As above so below.

>> No.54511617
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54511617

>>54510201
So...
Buy bitcoin?

>> No.54511666

>>54511617
as always.

>> No.54511758

I'm worried bros..... How much time do I have ?

>> No.54511839

>>54510237
Eh, you can get 4.5% fixed on a 9 month CD, I just did that with some spare lunch money and i will continue to do that until i find something more useful to buy. Which will only be buying a huge dip on something that's not some overpriced bullshit tech stock.

>> No.54511853

>>54510293
check out the big brain on brett

the money will move back into deposits at some point when banks feel comfortable enough to offer higher rates

some of them will end up 1990s Japan style zombies where everyone pretends they are solvent

>> No.54512003

>>54511839
are you mostly in cash right now?

>> No.54512033

>>54511839
Smart

>> No.54512061

>>54510201
None of these silly games mean anything, the only real problem in western economies is access to third world resources and possibly a small labor shortage

>> No.54512075

>>54510201
The whole point is to crash regional banking and send deposits to the treasury to be reallocated as CBDC.

>> No.54512080
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54512080

>>54510201

>> No.54512085
File: 67 KB, 1318x567, Screenshot 2023-04-08 at 15-15-53 Assets Total Assets Total Assets (Less Eliminations from Consolidation) Wednesday Level.png [View same] [iqdb] [saucenao] [google]
54512085

>>54510666
update
your shitty doom predictions don't even hold for two weeks
kek

>> No.54512098

>>54511666
Checked..

Send it

>> No.54512614
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54512614

>>54512085
>your shitty doom predictions don't even hold for two weeks

>> No.54512653

>>54512614
One of these days we will all wake up to see Asia has traded us down like 20% overnight and we'll just have to deal.
And then the next day 13%, and then 7% etc etc and then the bleeding will continue until the USA actually comes to terms with the debt and dollar.

>> No.54512738

>>54512098
Thanks Satan

>> No.54512801

>>54512653
china has FX reserves of 8% of GDP
in 97-98 things really started breaking for countries when reserves fell below 30%
because china has intense capital controls this will not be reflected as capital flight but they will be forced to devalue
most important thing to watch is the HK dollar peg which has been at the upper bound again and the HIBOR hiccups are getting stranger

good luck to you in Russia btw, try to think what happens to you when yuan devalues 15%

>> No.54513425

>>54510763
>illiquid deposits will become liquid dollars
Nonsensical statement. Deposits are already maximally liquid dollars.

>> No.54513482

>>54511839
Money that is invested in CDs also ends up in the borrower's bank account by definition.

>>54511853
>the money will move back into deposits at some point when banks feel comfortable enough to offer higher rates
Wrong. The money is already back in bank deposits -- in the accounts of the borrowers. There is no place for money to flow to other than bank accounts or physically cash. Any drop in bank deposits caused by a change in the behavior of savers/investors is by definition only temporary.

>> No.54514231

>>54510201
My stacks of silver, gold, and XRP remains unphased