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Massive reserve increases onto banks starting. Will it destabilize?

Summary:
Problematic for bank balance sheets. Could be destabilizing. Trade and invest using the concepts of MMT. Get a 30-day free trial to MMT Trader. https://www.pitbulleconomics.com/mmt-trader/?s2-ssl=yes/ Download my podcasts! New one every week. https://www.buzzsprout.com/1105286 Mike Norman Twitter https://twitter.com/mikenorman

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Problematic for bank balance sheets. Could be destabilizing. Trade and invest using the concepts of MMT. Get a 30-day free trial to MMT Trader. https://www.pitbulleconomics.com/mmt-trader/?s2-ssl=yes/ Download my podcasts! New one every week. https://www.buzzsprout.com/1105286 Mike Norman Twitter https://twitter.com/mikenorman Massive reserve increases onto banks starting. Will it destabilize?
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.

19 comments

  1. Mike anyway I can get a "They're printin' money" or "Juicing, Pumping, Printin'" shirt?

  2. Usman has the hardest head ever

  3. My boy Mike can roll!?

    Come to Dallas!

  4. There is, of course, a big difference between a MMA fight, big wave surfers, and investing. With investing, either you have confidence in your analysis or you don't. If you do, you stay the course. If you don't, you bail. This mental game stuff just sounds like blah, blah, blah to me.

    • It's not blah, blah, blah at all. If you're in a large position and it's not moving in the direction you want it to, it requires strong mental game so you don't bottle out of the trade even if the circumstances/reasoning hasn't changed.

    • @Yoh he makes a valid point. Look at the washout in March, market has a way of inflicting maximum pain to make u second guess yourself and close out of your position. It took mental toughness not to sell because many did and took a 30% loss immediately and are still in cash to this day for a 45% swing. Rule of thumb for me, when I want to sell the most, I buy.

  5. Guy likes his hats

  6. Finance & Economics

    I like the hat, I used to wear a black on black Tampa Bay Bucs hat in a similar style.

  7. Ever since the Fed started paying interest on Reserves they have functioned exactly like Treasuries. They provide guaranteed income to banks and large investors. They pay low interest, so function as ballast — a hedge against those trader's riskier bets.

  8. Hey Mike! Just wanted to leave a comment. Will shoot you an email soon. Moved to the sticks. One year anniversary coming up for me as one of your team members. Hands down the best financial decision I have ever made. No shit! I check my "johnny on the spot" emails from Michael Norman after a cold shower around 4am and utilize the rest of my time getting off grid. Which has been a decade long goal.I couldn't have done it without you Mike! You are Hall of Fame to those of us in the know! HOORAH

  9. In other words, what's required is that you keep playing the game because capitalists companies need your investments to keep earning profits.

  10. Zerohedge came out with an article about a warning from Zoltan Pozsar saying the banks don't have the balance sheet space to accept all this money from the Treasury. Money is going to chase after assets resulting NIRP.

  11. Great advice

  12. Hey Mike any idea on when Fed will implement YCC to a greater extent? Some say 10y at 3% but I dont think they can let that happen anymore…. like ever again lol

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