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Author Topic: Why the Fed is Quietly Bailing out Hedge Funds?  (Read 187 times)

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Offline RomanCatholic1953

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Why the Fed is Quietly Bailing out Hedge Funds?
« on: January 20, 2020, 06:15:48 PM »
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  •  by RBN Staff
    944 Trillion Reasons Why The Fed Is Quietly Bailing Out Hedge Funds
    January 19, 2020 in News by RBN Staff



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    source: www.zerohedge.com
     
    by Tyler Durden
    On Friday, Minneapolis Fed president Neel Kashkari, who just two months earlier made a stunning proposal when he said that it was time for the Fed to pick up where the USSR left off and start redistributing wealth (at least Kashkari chose the proper entity: since the Fed has launched central planning across US capital markets, it would also be proper in the banana republic that the US has become, that the same Fed also decides who gets how much and the entire democracy/free enterprise/free market farce be skipped altogetherissued a challenge to “QE conspiracists” which apparently now also includes his FOMC colleague (and former Goldman Sachs co-worker), Robert Kaplan, in which he said “QE conspiracists can say this is all about balance sheet growth. Someone explain how swapping one short term risk free instrument (reserves) for another short term risk free instrument (t-bills) leads to equity repricing. I don’t see it.
    To the delight of Kashkari, who this year gets to vote and decide the future of US monetary policy yet is completely unaware of how the plumbing underneath US capital markets actually works, we did so for his benefit on Friday, although we certainly did not have to: after all, the “central banks’ central bank”, the Bank for International Settlements, did a far better job than we ever could in its December 8 report, “September stress in dollar repo markets: passing or structural?”, which explained not just why the September repo disaster took place on the supply side (i.e., the sudden, JPMorgan-mediated liquidity shortage at the “top 4” commercial banks which prevented them from lending into the repo market)…
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    Offline Immaculatam Hostiam

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    Re: Why the Fed is Quietly Bailing out Hedge Funds?
    « Reply #1 on: January 20, 2020, 06:27:51 PM »
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  • Kinda weird how the dollar and financial system is on the brink of collapse (the only thing keeping it afloat is the massiv money-printing), which is what has artificially sky-rocketed the stock market, while a new coronavirus emerged in China recently. Just waiting for it to mutate before it spreads like wildfire and has a high mortality rate, thus, deflect away from the Bankers who engineered the coming financial collapse, fleecing of the masses, and eradication of the middle class. So when the next 1918 Spanish Flu-like, or worse, pandemic hits, everything will come to a standstill including distribution, thus, the markets, banks, and dollar will collapse. Perfect way to escape blame for actually causing the collapse by their fractional reserve ponzi scheme running since 1913 which is inherently designed to fail.