Loading ...Eurodollar Curve Inversion is DESPERATE and DEEP (Eurodollar University)
These guys have been banging the kettle for months about the inversion in Eurodollar futures.
According to Jeff Snyder, an inversion of 1 basis point should make one sit up and take notice. The inversion just hit 124 basis points. Something nasty is afoot, but what…?
Luongo argues that the Fed is trying to corral and squeeze the offshore dollar funding markets, because that is how the ECB is trying to keep their ship afloat, and the WEF by extension.
I have no idea if inversions would be what you’d see if that was playing out.
I only watched the first half of the vid, and didn’t get the sense I’d learn much more from the rest. Jeff tries hard, but his explanations never seem to make light bulbs come on for me. He points to symptoms, but never seems to uncover the driving forces. Its mostly technical market speak, but never any discussion of the political agents and their objectives. The political economy of these observations isn’t examined. IMO, it seems likely that those dots need to be connected. Maybe Tom and Jeff should do a talk.
I completely agree with your analysis of the video. The Eurodollar futures inversion is interesting, perhaps alarming,
but we will have to look elsewhere for the implications since (as you mentioned) the political implications of these observations is not examined.