by 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:
Jodi Beggs writes Economists Do It With Models 1970-01-01 00:00:00
Mike Norman writes 24 per cent annual interest on time deposits: St Petersburg Travel Notes, installment three — Gilbert Doctorow
Lars Pålsson Syll writes Daniel Waldenströms rappakalja om ojämlikheten
Merijn T. Knibbe writes ´Fryslan boppe´. An in-depth inspirational analysis of work rewarded with the 2024 Riksbank prize in economic sciences.
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 $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…