Anonymous ID: 777072 June 22, 2022, 3:48 p.m. No.16490681   🗄️.is 🔗kun

I can not emphasize enough how important this distinction is, as it relates to the markets. Liquidity Policy isEVERYTHINGto The Street.EVERYTHING. If they can't borrow at cheap or next to nothing overnight rates, they can't trade profitably on ANYTHING. They do this through the Repo Market, and by putting up US Treasuries, TBills in particular, for margin, sometimes borrowing up to 99.9% of face value. Do that with say a JPMorgan bond, and they'll lend you 75% of face value. The higher the risk bond, the less margin value.


Back to the story of "How It Works, And Why It's Important"::


Quantitative Tightening did not begin this month. It began one year ago. Let me explain…


The Federal Reserve has two tools to implement its monetary policy, one old and one new.


The old tool is interest rate policy. The Fed uses short-term interest rates to encourage or discourage credit creation and money supply.


The new tool is liquidity policy. To save the financial system in 2008, the Fed directly intervened in the US Treasury (“UST”) and Mortgage-Backed Security (“MBS”) markets to stabilize prices and inject much needed liquidity into an over-levered banking sector. The original QE was a wartime measure - the first large scale use of liquidity as a policy tool - but wartime measures have a way of sticking around.


With interest rate policy, the Fed conducts an orchestra, guiding the musicians with its baton. With liquidity policy, the Fed grabs an oboe and plays it with a leaf blower.


[Two very important points left out.


  1. The TBills deposited at the MMFs and other FSIs must remain unencumbered (not use for margining purposes, anywhere in the system.).


  1. The Street can't use these to trade any more. So, because of the Corzine Rule*, any little loss, anywhere, requires selling something else to cover that margin call. (Look at the spasms in Crude Oil (WTI) if you don't believe this "Rule" exists.).


*Corzine Rule = "There shall be no excess margin in the system, at any time." (Corzine was trading, for the house, using customers' Excess Margin (unrealized Profits). Statute of Limitations for this crime ran out on Oct. 31, 2016. Thanks, Holder!)

Anonymous ID: 777072 June 22, 2022, 3:57 p.m. No.16490716   🗄️.is 🔗kun


Recycling the same two deaths from contaminated formula, that was contaminated at the home, btw, not in the plant?


This smells like Durbin playing punching bag politics.


I bet Abbott declined to make the obligatory Campaign contribution to the incumbent's campaign this year. He's a new Chair of the Board, and wanted to set his own standard.


Durbin, on the other hand, has his hands in every single piece of food legislation, especially SNAP and EBT cards (Food Stamps), so this would be his fiefdom, no question.


Punching bag politics is where you publicly flay the uncooperating prospective donor until they pay p, now at the higher rate for all the trouble they caused, naturally. Durbin is yankin all his strings to squeeze the IL based company. Has all the hallmarks of an old play. (He did this with Walgreens when they bought UK's Boots drug chain, to invert to Irish taxes. Beat 'em up for months and had them audited 8 different ways).

It's his total M.O. from the dirtier side of St. Louis politics, East St. Louis, IL.

Anonymous ID: 777072 June 22, 2022, 4:03 p.m. No.16490738   🗄️.is 🔗kun   >>0752

Brian Entin


Uvalde Schools Police Chief Pete Arredondo has been placed on administrative leave by the superintendent.

Anonymous ID: 777072 June 22, 2022, 4:08 p.m. No.16490759   🗄️.is 🔗kun   >>0811 >>0834

Rosie Memos


Has anyone else noticed that it looks like the J5 pipe bomber is waving to a SUV that looks like some kind of law enforcement?


Rosie Memos @almostjingo


It’s just bizarre, I’m not trying to start anything genuinely curious what other people see.


Rosie Memos @almostjingo


Specifically a Capitol police SUV…

Anonymous ID: 777072 June 22, 2022, 4:15 p.m. No.16490795   🗄️.is 🔗kun

Tom Hearden


Been meaning to write this tweet all day. How bad are things going at $META that Zuck agreed to get booked on Cramer’s show?

Anonymous ID: 777072 June 22, 2022, 4:19 p.m. No.16490819   🗄️.is 🔗kun   >>0822 >>0823 >>0860 >>0878

Jan Wolfe


Amazon's Alexa voice assistant will be able to mimic any person's voice after hearing a short audio clip. Amazon markets the tech as a way to remember a deceased family member.