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16-09-2022, 09:46 AM
the greatest fool theory on crypto's rise and fall in 2022
https://www.youtube.com/watch?v=o1BqHjNafRk
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https://www.ft.com/content/70e43592-30d0...3910ad7726
The Federal Reserve’s more rapid exit from crisis-era policies is set to place the $24tn US government bond market under extra strain, heightening concerns about the bedrock of the global financial system.
The ease with which traders can get deals done in the Treasury market has declined to the lowest levels since the early days of the pandemic in March 2020, according to a Bloomberg index. Gaps between prices where traders buy and sell have yawned wider and huge moves in price, on a scale unthinkable even a year ago, have become commonplace.
The Fed is this month accelerating the pace of winding down the nearly $9tn balance sheet it built up for more than a decade in an effort to cushion the economy from shocks. It aims to shrink the total by $95bn a month — double the August pace.
As a result, “we could have a problem of liquidity stress in the banking system,” said New York University economist Viral Acharya. “And whenever banks are stressed, it usually spreads over to non-banks and Treasury markets and other [funding] markets.”
Bank of America has described Treasury market strains as “arguably . . . one of the greatest threats to global financial stability today, potentially worse than the housing bubble of 2004-2007.”
https://www.youtube.com/watch?v=o1BqHjNafRk
Please use the sharing tools found via the share button at the top or side of articles. Copying articles to share with others is a breach of FT.com T&Cs and Copyright Policy. Email licensing@ft.com to buy additional rights. Subscribers may share up to 10 or 20 articles per month using the gift article service. More information can be found at https://www.ft.com/tour.
https://www.ft.com/content/70e43592-30d0...3910ad7726
The Federal Reserve’s more rapid exit from crisis-era policies is set to place the $24tn US government bond market under extra strain, heightening concerns about the bedrock of the global financial system.
The ease with which traders can get deals done in the Treasury market has declined to the lowest levels since the early days of the pandemic in March 2020, according to a Bloomberg index. Gaps between prices where traders buy and sell have yawned wider and huge moves in price, on a scale unthinkable even a year ago, have become commonplace.
The Fed is this month accelerating the pace of winding down the nearly $9tn balance sheet it built up for more than a decade in an effort to cushion the economy from shocks. It aims to shrink the total by $95bn a month — double the August pace.
As a result, “we could have a problem of liquidity stress in the banking system,” said New York University economist Viral Acharya. “And whenever banks are stressed, it usually spreads over to non-banks and Treasury markets and other [funding] markets.”
Bank of America has described Treasury market strains as “arguably . . . one of the greatest threats to global financial stability today, potentially worse than the housing bubble of 2004-2007.”
