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Still bearishness on TGA increase

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Many investors short term bearish on a reduction of their figure of speech “liquidity!”…Druckenmiller is 100% spot on here 👇 pic.twitter.com/1LGMs9FXqM— Financelot (@FinanceLancelot) June 10, 2023 What could neuter a new bull market? A recession that knocks down earnings would be a big one, of course. But the more immediate concern is liquidity.With the debt ceiling finally passed, the Treasury is expected to issue at least .2 trillion in T-Bills, with half of that… pic.twitter.com/lwGmjNjw3w— Jurrien Timmer (@TimmerFidelity) June 9, 2023 If USD reserve balances are simply transferred from the RRP account to the TGA account there won’t be any adverse regulatory effect… But if instead the USD reserve balances are transferred from the Depository account to the TGA account then system

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Many investors short term bearish on a reduction of their figure of speech “liquidity!”…






If USD reserve balances are simply transferred from the RRP account to the TGA account there won’t be any adverse regulatory effect… 

Still bearishness on TGA increase


But if instead the USD reserve balances are transferred from the Depository account to the TGA account then system regulatory leverage ratio will increase allowing Depository system to apply HIGHER prices (NOT lower prices ) to remaining non-USD Reserve assets while maintaining an equivalent leverage ratio…

Still bearishness on TGA increase


Though may cause more chaos in small banks that have a dearth of Reserve assets… but that would be their problem…

$400b of new Bills being issued Monday and Tuesday and will settle a few days after that… have to watch what the regulatory effect of TGA refunding is… it may be very favorable to Depositories…


Still bearishness on TGA increase




Mike Norman
Mike Norman is an economist and veteran trader whose career has spanned over 30 years on Wall Street. He is a former member and trader on the CME, NYMEX, COMEX and NYFE and he managed money for one of the largest hedge funds and ran a prop trading desk for Credit Suisse.

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