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/biz/ - Business & Finance

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49971372 No.49971372 [Reply] [Original]

Can somebody explain this to me like I'm retarded? What are the implications if this?

Just temporary saving bonds? While we crash harder later?

>> No.49971433

>>49971372
i too am interest

>> No.49971452
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49971452

>>49971433
Here is more information

>> No.49971472
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49971472

>>49971433
>>49971372
>>49971452

I'm not financially savvy enough to know wtf it means though for the markets short term/medium term. I got rekt on Friday trading.

>> No.49971534

There must be someone smart enough here that knows what's going on

>> No.49971578

reads like cope for getting smoked on friday. we're in a liquidity crisis and canada needs dollars, doesn't seem particularly unusual for something like this to happen given the conditions. we already know rates are going up again in july. we also know that rate hikes have a limited real effect on inflation and they are running out of leash to pull.

>> No.49971755

>>49971578
Based, so I can just buy 360p for end of July and be fine

>> No.49971779
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49971779

what did i tell you? why didn't you listen?

>> No.49971826

>>49971372
Fed printed a bunch of dollars
Canadian central bank printed a bunch of canadian dollars
Then they swapped so that fed gets canadian dollars and canadian central bank gets USD. At some point in the future they will swap back and both amounts get deleted.

This means that there is an acute shortage of USD in the canadian capital markets and Fed is acting as a lender of last resort of USD. Canadian central bank cannot print dollars so they have to ask Fed to do it and they swap.

Expect many many more instances of this to happen over the next few years because global trade runs on USD and there are going to be shortages in a lot of places. One of the problems of having a reserve currency is that Fed has to act as a lender of last resort for half of the world.

>> No.49971849

>>49971779
So blood red next week?

I need to get my money back lol

>> No.49971860

>>49971826
Thanks anon

>> No.49971869

>>49971372
Basically they artificially helped Canadian dollars and USD while simultaneously deflating the vix. It’s just more money printing manipulation trying to stave off the inevitable.

>> No.49971908

>>49971826
Based Mannarino poster

>> No.49971934

>>49971849
most likely, if next week at all, to occur late thursday or all day friday. the week after should be blood red. then we get another dead cat bounce

>> No.49971935

>>49971849
No, it will be green short term and they’ll just do it again and again and again until a viable alternative arises like the Chinese central bank, commodities backed currencies or crypto. As of now the plebs are too dull to even consider any alternatives so the Fed continues to rule the roost.

We’re going green for now and as long as the Fed deems it “necessary”.

>> No.49971973

>>49971935
Fuck I hate this schizo makrket

>> No.49972044

>>49971973
If you can’t beat ‘em join em. Don’t fight the Fed yadda yadda yadda. We’ve entered a command economy and the new world order is upon us. The poor and middle class will rent everything and wealth will be concentrated in fewer hand than we’ve seen in a long time. Humanity’s re-enslavement will be accepted as normal while the proles are distracted by meaningless issues like abortion rights or black inequality. Hopefully something breaks, but I just don’t see anything happening except maybe balkanization of the west.

>> No.49972121

>>49971826
>This means that there is an acute shortage of USD in the canadian capital markets

how is there a shortage of USD reserves in canada and why did it affect US markets? is this related to canadian real estate slowly going bust too? i dunno what the exposure of canadian real estate is that is dollar denominated.

>> No.49972315

>>49972121
Also interested in these questions

>> No.49973039

The second half of this tweet seems like made up bullshit to me. Maybe I'm retarded but the VIX hasn't even been high and I don't know wtf it has to do with money markets

>> No.49973333

>>49973039
I dont either

>> No.49973387
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49973387

Currency swaps are generally last resort bullshit and a sign of recession just around the corner. I can only think of one big country level currency swap, because I'm not really well versed, but it was Goldman Sachs and Greece. It was meant to be a cash influx for Greece, while it was at it's lowest rating, with huge incentives for Goldman Sachs, and a massive option in case of nearing default.
Essentially it's a bad sign, all the more if this wasn't known to the public or mentioned as a possibility recently. They know something we don't, which is the basis for all finance, and it might fuck a lot of investors, which is also the basis of finance.

>> No.49973468

So when does the Fed give up and pivot back to QE and near-zero interest rates? Surely they can't keep raising rates every month now that a recession is here. Unless that's the goal.

>> No.49973584
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49973584

>>49973039
>>49973039
>>49973039
>>49972121
>>49972121
>>49972121
>>49972121
Can somebody answer this shit please?

>> No.49975679

>>49973584

anon, i think that if anyone could answer, they would want to profit from us knowing

>> No.49975746

>>49973468
whenever it is politically convenient

>> No.49975832

>>49972121
>how is there a shortage of USD reserves in canada
I don't know the EXACT circumstances of Canada's reserves, but the consequence of rate hikes is the departure of dollars from the open market into the hands of debtors, who in turn pay back US creditors / IMF with USD. this sudden supply shock and scarcity is the reason we've seen temporary strength in the dollar despite continued inflation. canada needs dollar reserves to backstop liquidity for imports from the US into Canada, or trade gets fucked. They are our major trading partner and can't be allowed to enter liquidity crisis

>> No.49976288

I'm the anon from the other day with the only knowledgeable post in the thread where faggot OP confused 2 year t-notes with bonds, and, he and most of the retards in the thread confused bond prices with yields. All of you morons need to study the money markets and stirs. Answer these questions: what is a eurodollar? Where do they come from? What happens to them when the fed funds rate increases? What happens to the parties of eurodollar debt/trade/commerce during fed tightening regimes? Why does that happen? Answer those, and you'll see why the fed has had, and will have again, open and unlimited fx swap lines with US ally central banks. The rest of the world will simply roll over. Wash, rinse, repeat. And no, I won't be sticking around to spoon feed you zoom zooms money markets and fixed income 101