>>13107609 (pb)
Tenor of that talk was that Powell basically denied the TBTFs moar free money via the SLR. Interest rate movemnts of the last 10 days or so tied directly to a major player withholding 5yr and 10yr US Treasuries from their normal use in RePo market. Last time this happened was in August of 2019. Saint Jamie of JPM told his nonexistent trader due to Volcker Rule to buy as many Treasuries as they could. Going into the last expiration of the SLR, Sept 2019, he had them withhold that pool from the RePo market, for the first time since 2008 (Remember That?), and force the Fed to give in.
Did Jamie do it again? I have no clue nor any proof. But it sounds like a duck to me.
Throw the Greensill collapse on top, and you have a spectacular liquidity hole that needs filling. Greensill is another modern example of borrowing long to lend short, then use fraud to recover the cash hole when Covid blows up your biz model. He financed any and all shipping costs around the globe. Borrowed from the TBTFs, financed short term shipping with a nice vig, and sold the cash flows as "securities", properly rated at AAA (because he paid his fees, only?), which were then sold around the globe to institutional investors. Insured by Tokio Marine, no less, just a bit fraudulently.
https://www.afr.com/companies/financial-services/insurer-fired-staffer-who-signed-greensill-contracts-20210304-p577ok
https://www.zerohedge.com/markets/greensill-political-questions-need-be-asked
https://morningporridge.com/the-morning-porridge/f/blain%E2%80%99s-morning-porridge-%E2%80%93-march-2nd-2021-lochaber-no-more
https://www.ismworld.org/supply-management-news-and-reports/reports/ism-report-on-business/pmi/february/
"What Respondents Are Saying" is all you need to scan on that for the recurring theme.
The back up on the docks of all that cargo is proof that it all blew up. Cargo will not move off a dock with out cash, not "credit".