Share this page!

Brian Chappatta Profile picture
Twitter logo
19 Nov, 6 tweets, 2 min read
Wow. Major news coming out of the Treasury, as reported by @SalehaMohsin:

All emergency programs from the CARES Act will expire on Dec. 31. So that's:

Municipal Liquidity Facility
Main Street Lending Program
Primary and Secondary Market Corporate Credit Facilities
Oh also the Term Asset-Backed Securities Loan Facility.

There WILL be a 90-day extension of the Commercial Paper Funding Facility, Primary Dealer Credit Facility, Money Market Liquidity Facility and the Paycheck Protection Program Liquidity Facility.

Moreover, Mnuchin is asking the Fed to return unused stimulus funds to the Treasury.

As I understand it, this would make it more difficult for President-elect Biden's Treasury Secretary to just "turn back on" the muni/corporate/Main Street facilities.
RIP to the Mnuchin-Powell dream team

bloomberg.com/opinion/articl…
This is how the muni/corporate/Main Street facilities could get started up again in the future.
Mnuchin interprets Congressional intent now

• • •

Missing some Tweet in this thread? You can try to force a refresh
　

Keep Current with Brian Chappatta

Brian Chappatta Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!

PDF

Twitter may remove this content at anytime! Save it as PDF for later use!

Try unrolling a thread yourself!

how to unroll video
  1. Follow @ThreadReaderApp to mention us!

  2. From a Twitter thread mention us with a keyword "unroll"
@threadreaderapp unroll

Practice here first or read more on our help page!

More from @BChappatta

Brian Chappatta Profile picture
17 Nov
The U.S. housing market is 🔥🔥🔥

In particular, record-low mortgage rates have encouraged a ton of refinancing. That's freed up a lot of cash for Americans across the country in the past several months.

But what happens now?

bloomberg.com/opinion/articl…
Remember, the Fed is still adding $40 billion of MBS to its balance sheet each month. That's a ~net~ figure, so it's actually gobbling up closer to $100 billion each month and doing its best to suppress mortgage rates. Image
But long-term rates are (gradually) starting to rise.

If the refinancing wave is over, it's possible we'll start to see more subdued spending. Retail sales today increased by less than expected, for instance.

And Raphael Bostic has concerns too:

Read 4 tweets
Brian Chappatta Profile picture
3 Sep
With President Donald Trump ordering a review of funding of Democratic-run cities (or what a memo calls "anarchist jurisdictions"), now would be a good time to recall just how vital New York City is to the U.S. economy.

bloomberg.com/opinion/articl…
The nominal GDP of the NYC metro area is $1.8 trillion, or almost 10% of the overall output of America’s metropolises.

That's a greater share than 2009, even though other cities like Portland and Seattle (also targeted by the memo) grew faster during the expansion.
If you target New York City, you're aiming for Wall Street.

Finance still rules the Big Apple, even after the 2008 crisis.
Read 6 tweets
Brian Chappatta Profile picture
1 Oct 19
MILLENNIALS

You might think “avocado toast” or “participation trophies.” But they’re about to become the biggest adult cohort in America, and Wall Street wants to know if they can lead the U.S. economy (and stock market) to greater heights.

Thread!

bloomberg.com/graphics/2019-…
I worked with the masterful @hecharts to make graphics that provide a better sense of where millennials are at right now.

Using Fed data and other statistics, we can see how young Americans (under 35) now compare to those of the past. And how they compare to older generations.
@hecharts Some good news: Millennials are starting to make more money.

The unemployment rate has declined and wage growth has somewhat picked up in recent years. So median income is finally bouncing back after a big drop in the wake of the Great Recession.
Read 16 tweets
Brian Chappatta Profile picture
26 Sep 19
Still confused about why the repo market is freaking out, and whether you should care?

It’s about BUDGET DEFICITS.

Thread!

bloomberg.com/opinion/articl…
Budget deficits, while nothing new, obviously add up over time.

While the U.S. deficit soared after the crisis, it declined each year from 2011 through 2015. It widened again under President Donald Trump.

That’s TRIPLED the amount of U.S. Treasuries out there.
Running deficits is one thing when the Fed’s engaging in QE. But starting in late 2017, the central bank began trimming its balance sheet.

By the time the Fed ended its runoff in July, it had shed about $400 BILLION from its Treasury holdings.
Read 10 tweets
Brian Chappatta Profile picture
11 Sep 19
Donald Trump, the self-proclaimed “King of Debt,” had some advice for the Fed today.

Most of it doesn’t hold up to the slightest scrutiny.

THREAD

bloomberg.com/opinion/articl…
Zero or negative interest rates would probably do more harm than good right now.

They would likely cause an immediate problem for banks. And it’s a very open question whether Americans would take negative yields sitting down. They’ve never had to before.
The U.S. doesn’t “refinance” its debt in any meaningful way. The federal government isn’t like a company that issues bonds that can be bought back if borrowing costs fall. For the most part, higher-coupon bonds just eventually roll off the books.
Read 10 tweets
Brian Chappatta Profile picture
15 May 19
Young Americans have fallen seriously behind on their credit-card payments.

Some 8.05% of outstanding credit card debt among 18 to 29 year olds was delinquent by at least 90 days, the highest level since early 2011.

Here's why that's worrisome. 1/5

bloomberg.com/opinion/articl…
The fact that millennials are more behind on credit-card payments than older generations isn't too surprising. But they had been closing the gap in recent years.

Now delinquencies are on the rise again, even though the labor market is as strong as ever. 2/5
This should be concerning to credit-card issuers. They have seen their gauge of "bad debt" rise to the highest level in almost seven years.

However, CEOs at Capital One and Discover largely chalked that up to negative events coming off the credit reports of some consumers. 3/5
Read 5 tweets

Did Thread Reader help you today?

Support us! We are indie developers!

This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3/month or $30/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!

Follow Us on Twitter!

Like this author's thread?

Get email notifications when new thread is out from this Author!

Check out other threads from this Author!

Read all threads by @BChappatta