1/n It really is all one trade.
Risk markets LTM.
Liquidity and $SPX
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cc: @concodanomics2/n Liquidity and $DXY
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Oct 9, 2022 • 5 tweets • 1 min read
1/n Respectfully disagree with almost everything you posit in the first tweet. In a credit based economy
- at 125% debt/GDP
- tightening liquidity with >$1T withdrawn
- most aggressive/rapid hiking cycle in history
- inverted curves
- $ spiking -> global FX imbalances
2/n -global tightening -> global economy on the brink
- equity/risk asset markets imploding
- housing tanking
- $ trillions in refinancing required at higher rates/lower appetite
- savings rate collapsed while revolving credit at new highs
- fiscal stimulus tailwind evaporated
Jan 15, 2021 • 8 tweets • 2 min read
1/n Whoa! This is a firecracker. I'll wait for PPT (@gamesblazer06) and @Stimpyz1 to argue both sides of the argument. Here's my take FWIW.
In Jan 2019 the Fed decided to implement an "ample reserve" regime. This has important ramifications for money markets. As Fed ...
2/n ... assets⬆️ e.g QE, composition of the Fed's liabilities also changes. As TGA balance⬆️ ($1.6T currently), bank reserves⬇️ (currently $3.2T). TGA balance is expected to ⬇️ due to fiscal relief. RRP, a tool for MMFs to invest at a fixed rate, places a floor under ....
