Goldtent TA Paradise

Bank Runs Starting ?

1. Spock says:

   June 5, 2022 - 1:01 pm at 1:01 pm

   $300 billion is a drop in the ocean. Noise.

   The repo market is $trillions daily.

   The Fed inflated $6 trillion in 18 months, with another $10 trillion in the pipeline.

   • Chartsmaster says:

     June 5, 2022 - 5:27 pm at 5:27 pm

     $300 billion may be a “drop in the bucket”but that is all it takes. With the whole system leveraged upon trillions upon trillions in derivatives one counter party in trouble leads to a dominoe effect. Remember, Lehman, Bear Stearns, Enron etc. etc.

   • Mike P. says:

     June 5, 2022 - 5:53 pm at 5:53 pm

     True but derivatives…the 300B here and 200B add up, plus rising interest rates could trigger the derivative market to go belly up and 10T won’t be able to bail out the collapse of that market. Rumor is BOA is (behind the scenes) already on the chopping block. I think when main street realizes paper money is just paper and they’d trade it for anything (food) is approaching – perhaps within the next 12 months? I supposed the FED anti-dote for their collapsing USD system is to go the other way and implode the markets (and job market) to force debts to become unpayable and for houses to be forclosed on – creating an artificial “desperation demand” of dollars to service debt. This demand for USD could keep their system aflot for a bit longer but they’d need to allow everything else to collapse around it (businesses with lots of debt and many banks). The other side benefit for them, not us, with failing banks and markets would be the creation of FED ACCOUNTS and CBDC. Perhaps a blend of both scenarios is in play?