Sunday , November 24 2024
Home / Mike Norman Economics / Future RRP rate

Future RRP rate

Summary:
You knew this guy was going to have to change his view…#Zoltan pic.twitter.com/Izos8J7Wit— Randy Woodward (@TheBondFreak) January 12, 2022 This part here:RRP % has to be at or ABOVE any alternative to avoid a catastrophic flow of reserve balances into Depositories…. That’s why access to it had to be expanded in the first place…Fed gets a 👍 (so far)…But he says they are doing it to provide “structural support” (figurative language) to Money Market funds…  they are doing it to avoid creating a financial incentive for current RRP .5T of system reserve balances to flow into Depository asset accounts which would crash the whole thing again…  like they did in September 2008 and March 2020…Accordingly it would be best if Fed were to as quickly as possible reduce system reserve balances to a

Topics:
Mike Norman considers the following as important:

This could be interesting, too:

Matias Vernengo writes Elon Musk (& Vivek Ramaswamy) on hardship, because he knows so much about it

Lars Pålsson Syll writes Klas Eklunds ‘Vår ekonomi’ — lärobok med stora brister

New Economics Foundation writes We need more than a tax on the super rich to deliver climate and economic justice

Robert Vienneau writes Profits Not Explained By Merit, Increased Risk, Increased Ability To Compete, Etc.

You knew this guy was going to have to change his view…



This part here:


RRP % has to be at or ABOVE any alternative to avoid a catastrophic flow of reserve balances into Depositories…. That’s why access to it had to be expanded in the first place…

Fed gets a 👍 (so far)…

But he says they are doing it to provide “structural support” (figurative language) to Money Market funds…  they are doing it to avoid creating a financial incentive for current RRP $1.5T of system reserve balances to flow into Depository asset accounts which would crash the whole thing again…  like they did in September 2008 and March 2020…

Accordingly it would be best if Fed were to as quickly as possible reduce system reserve balances to a point where this Rube Goldberg RRP account goes to zero… they need to get on with “QT” (to them) as quickly as possible… the monetarist inflationista dummies should applaud this…





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.

Leave a Reply

Your email address will not be published. Required fields are marked *