Paraphrasing what Bill has espoused since I started reading him, governments, if they need to exist at all, should be as much "hands off" as possible. Meaning that they should not be interfering with day-to-day markets, trading, the exchange of goods, materials and service.
I would add to Bill's recommendations, that anyone who tries to run for a seat in government (like our clown of the day, Janet Yellen) or be a candidate for an appointed seat, should pass a basic competency test. One that involves knowing the history of their own country, having some form of accounting schooling like knowing the nuances of a P/L and Balance sheet and how they work together and finally understanding why each article of their own country's constitution was written the way it was, back when it was written. For major positions, like mayors, governors and presidents, I would even go one step further and require that the candidates have run a successful and honest (lol) business in their prior lives, scaling in size according to the position they were seeking.
This from CNN and Janet Yellen the other day:
**********
Calling the rapid collapse of Silicon Valley Bank a "new phenomenon," US Treasury Secretary Janet Yellen said the circumstances that led to it could very well happen again.
"The Silicon Valley Bank situation showed an overwhelmingly rapid run on a bank. We've never seen deposits flee at this rate," Yellen said Wednesday during a Senate hearing on Financial Services and General Government.
"Ma(n)y depositors were tech firms that work with venture capitalists that also bank. It's essentially shouting fire in a movie theater," she said.
"Now in the world that we live in, although this was a small community and a disproportionate share of Silicon Valley bank deposits, this kind of thing may more readily happen."
Yellen said SVB's plight could mean that stress tests on banks and some of the assumptions that go into modeling the pace at which deposits might flee banks might need to be "updated and rethought."
"This is a new phenomenon. We haven't seen this before."
**********
There have been numerous runs on American banks in it's history. Most notably would have been in 1980's and 1990's when hundreds of small savings and loans were wiped out because of exactly this "phenomenon." To have zero knowledge or understanding of this coming from someone with her position in the Federal Government, underlines what Bill has been saying all along.
Not all clowns are silly-stupid. There are also the malevolent ones in horror shows. While I still tend to think of Yellen and Friends as the former, I’m seeing more evidence of the latter. The Fed apparently knew raising rates was creating banking stress as early a 9 months ago but let it go critical anyway. It seems to me that their new policies have the intent of forcing large depositors out of regional banks and into a select few “systemically important” banks. After much of the herd is rounded up and safely in the big banks, the stragglers still in the weakened regional banks should follow. One can only speculate as to what might be next. Regardless, these are not funny clowns.
I just checked the party affiliations of all the sponsors of the CBDC Bills and over 2/3 are sponsored by Republicans. I haven't taken the time to read any of them yet (I probably will take a look at Nevada and California where I own real estate and both sponsors are Democrats), but I can only hope that the Republicans are trying to get out in front of this nightmare and put some guardrails on it. Though I don't know how that's even possible if it's going to be controlled at the federal level.
I saw that and thought the same thing. I put CA in the D column though because you have to look long and hard to find an R politician in that state anymore.
What a load of BS. She literally assured us weeks ago that the financial system was safe.... practically foretelling that brown smelly stuff was on its way... when a politician tells you to look left, best watch what’s coming from the right
If you want to know just how f#$cking stupid Yellen truly is, read FedUp by Danielle Martino-Booth. On Amazon. I just sent a copy to Kudlow because he said he thought Yellen did a good job as Fed Chair. I think he was just being polite. Still.....
So after the 2008 Shit Show the banking industry decides to recapitalize itself by raping savers and the productive class through interest rate repression. Now after 13+ years of interest rate repression we have Shit Show 2. So who's going to pay for the sequel? Ah, savers and the productive class says the apparatchiks. "Systemically Important" and 'Essential Worker' are terms cooked up by the apparatchiks to grant them the ability to arbitrarily screw whoever they please with no accountability.
What's even more disgusting is the Mindless, Statist, Government Apologist, Sheeple who willingly ingest this shit with a smile on their face. Heads they win tails you lose :-(
I wrote the piece about candidates and Janet Yellen specifically a few days ago. Attached it to Bill's missive on Argentina. Deleted it from there and put it here, as it seemed more appropriate.
After writing the piece below, I asked ChatGPT what and ideal candidate seeking public office should look like. Here is what it said.
**********
Highlight relevant experience: Political office seekers should emphasize any previous experience in public service, such as elected or appointed positions, volunteer work, or work for political campaigns or advocacy organizations. Relevant professional experience, such as in law, business, or education, may also be relevant.
Showcase leadership and management skills: Candidates should highlight any leadership or management experience they have, such as leading a team or organization, managing a budget, or implementing policies or programs.
Emphasize communication and public speaking skills: Effective communication and public speaking skills are essential for political candidates. Candidates should highlight any experience they have with public speaking, media interviews, or writing.
Highlight community involvement: Candidates should showcase their involvement in their local community, such as through volunteer work or serving on community boards or committees. This demonstrates a commitment to public service and an understanding of local issues and concerns.
Education and credentials: Candidates should list their educational background, including any advanced degrees or certifications that are relevant to the position they are seeking.
Personal qualities: Candidates should highlight their personal qualities that would make them a good candidate for political office, such as integrity, dedication, and a commitment to serving their constituents.
**********
Interesting. So I asked ChatGPT what Janet Yellen's resume looked like? That was an eye opener.
**********
Janet Yellen is an American economist and policymaker who served as the 15th Chair of the Federal Reserve from 2014 to 2018. Here is a summary of her resume:
Education:
Bachelor's degree in economics from Brown University (1967)
Ph.D. in economics from Yale University (1971)
Academic Career:
Assistant Professor of Economics at Harvard University (1971-1976)
Lecturer at the London School of Economics (1978-1980)
Professor of Economics at the University of California, Berkeley (1980-1994, 1997-2006)
Chair of the President's Council of Economic Advisers under President Bill Clinton (1997-1999)
President and Chief Executive Officer of the Federal Reserve Bank of San Francisco (2004-2010)
Government Service:
Member of the Federal Reserve Board of Governors (1994-1997)
Chair of the President's Council of Economic Advisers under President Barack Obama (2010-2013)
Chair of the Federal Reserve (2014-2018)
United States Secretary of the Treasury under President Joe Biden (2021-present)
Honors and Awards:
Fellow of the American Academy of Arts and Sciences
Honorary Doctorate of Law from Brown University
Adam Smith Award from the National Association for Business Economics
Yellen's career has been marked by a strong focus on macroeconomic policy, including monetary policy, financial regulation, and labor economics. She has been recognized as a leading expert in her field, and her contributions to economic policy have had a significant impact on the United States and the global economy.
*********
So if someone with SO much experience and apparent knowledge could not see the forest for the trees, could not see this coming, could not prognosticate what is about to happen due to their ill advised policy and decision making in the past, what can we, the serfs looking up on high for leadership through this turmoil, make of all this?
I note with interest that Janet Yellen received the Adam Smith award. Poor Adam must be rolling in his grave. She has given the free market a whole new interpretation. The invisible hand has been replaced by her's and her colleagues at the Fed.
Central Planning is a fools errand. Those who don't imbibe the propaganda have known this for decades. AI won't do any better than our apparatchiks, but we'll have lots of sarcastic belly laughs at their expense :-)
Violent revolution is almost always fatal folly, and always results in widespread, long-lasting societal animosity.
Impactful education of the middle class is currently impossible.
Voting is a joke - jet black humor. Democracy is the perversion of popularly elected government.
As far as I can see, prayerful, thoughtful Maximum Safety Mode is the only reasonable way to face our near (10-20 years) future and be part of the solution rather than part of the problem.
Long-term, we need to permanently engrave the historical and contemporary fact that the president/king/dictator is content to eat dust at the feet of the robber barons who stand erect behind the throne.
We have learned through sad experience that it is the nature and disposition of almost all humanity, as soon as they gain a little authority, as they suppose, they will immediately begin to exercise unrighteous dominion.
Don’t forget that after the last financial crisis of 2008. The Fed and The Government had to stimulate the economy. And after Covid they had to do it all over again! Failure not to stimulate would have led to a collapse of everything.
Or, maybe it wouldn’t.
Public servants chose to err on the side of caution!
And democrats chose lockdowns in order to stuff the ballot box with mail in votes!
They got elected but now can’t pay for anything except to tax/borrow more.
THAT MAKES THE POLITICIANS STUPID.
And same goes for the dumbasses who elected them!
Enjoy your stupid choices and watch your world end!
Call me a skeptic (more likely a realist), but I'm still not buying the whole "They got elected..." part. You alluded to it yourself - what we have "leading" us now was not "𝗲𝗹𝗲𝗰𝘁𝗲𝗱" - it was fraudulently "𝗶𝗻𝘀𝘁𝗮𝗹𝗹𝗲𝗱"...
SE: You know that's not true...but live in your ideal world of anything is possible, if you believe enough. DW has the right idea..Become Independent. I'm more willing to do that because both parties do suck. I am automatically including the Fed..they should have been abolished long ago.
Nope. Haven't seen him lately. My gut tells me he is enjoying one of his shared weeks at the beautiful barrier island resort he so loves, and his wife has forbidden him any screen time. I too hope all is well and expect the twin gifts of his knowledge and experience will return in the next week or so...
To be fair, it’s more accurate to agree that maybe there would have been a collapse of everything. But it seems to me that they didn’t avoid it. They postponed it. And by actually or virtually amalgamating, or setting in motion a process of amalgamating the world’s banking resources... may succeed in postponing it some more. Damn them.
Soylent Green Is People!!!! It’s People! Aaaaahhhhh!!! 😂
Another banking financial scam sham on the way. But wait, Yellen says that the banking system is “sound”. So there, what can possible go wrong? Hahaha.
2008 Honest Ben (Bernanke) said no more big banks were going to fail, the statement was made during working hours, of course. Then after the markets closed, Feds seized Washington Mutual. 😂
What a beautiful scene that was indeed. Now we have Yellen’s assurance that everything is ok, they’ve got our backs. So keep your money in the bank, and watch it vaporize before your eyes soon, on live TV. Popcorn anyone!?! 🤣
Yes Bill, those crazy cooks in our federal reserve and government, working under the executive chefs of our banking cartel. The aroma’s created by these talented satanic artist smells like something we’ve all been forced to eat in the past 💩…does anyone smell Chinese food 🤔
It seems obvious to me that the next step in the elite/deep state/political play for managing the economic and social situation is to declare war and therefore martial law, like covid, and thereby avoid the trouble of staging the next presidential election.
All of the planned population control measures like cbdc's and killing a large number of our young (mostly) men and maybe general population would fall into place.
Food stamps and confiscated savings are also a logical consequence.
Ho hum, just another day at the office (circus) for these economists (clowns). It states in this report that 4 banks hold 88% of all derivatives at that point. 88% of 195 Trillion or 172 Trillion. Lordy.
For those that don't know what derivatives are, here is CGPT explaining it for us:
**********
Derivatives trading can be risky, and the level of risk depends on the specific derivative being traded, the market conditions, and the strategies being employed. Here are some factors that can make derivatives trading risky:
Leverage: Derivatives trading often involves using leverage, which means that traders can control a large amount of underlying assets with a relatively small amount of capital. While this can magnify potential gains, it also amplifies potential losses.
Volatility: The value of derivatives can be highly volatile, particularly during times of market stress or uncertainty. This means that prices can fluctuate rapidly and unpredictably, which can lead to significant losses.
Counterparty risk: Derivatives contracts are typically entered into with another party, such as a bank or brokerage firm. If the counterparty defaults on the contract, the trader may not receive the expected payout, which can result in significant losses.
Complexity: Derivatives can be complex financial instruments, and understanding the mechanics of a particular derivative requires a deep knowledge of the underlying assets and markets. Misunderstanding the risks and potential outcomes of a derivative trade can lead to unexpected losses.
While derivatives can be risky, they can also be valuable tools for managing risk and generating returns. Traders who engage in derivatives trading should carefully assess their risk tolerance, understand the potential risks and rewards, and use appropriate risk management strategies to protect their investments. They should also be aware of the regulations governing derivatives trading and ensure that they are in compliance with all applicable laws and regulations.
**********
The key to what Mark was talking about, is that these traders (aka clowns in monkey suits) have only one way to trade derivatives with that much exposure.
Leverage.
Which is great if the trade goes their way.
But if it doesn't, expect a lot of sad (clown) faces.
Paraphrasing what Bill has espoused since I started reading him, governments, if they need to exist at all, should be as much "hands off" as possible. Meaning that they should not be interfering with day-to-day markets, trading, the exchange of goods, materials and service.
I would add to Bill's recommendations, that anyone who tries to run for a seat in government (like our clown of the day, Janet Yellen) or be a candidate for an appointed seat, should pass a basic competency test. One that involves knowing the history of their own country, having some form of accounting schooling like knowing the nuances of a P/L and Balance sheet and how they work together and finally understanding why each article of their own country's constitution was written the way it was, back when it was written. For major positions, like mayors, governors and presidents, I would even go one step further and require that the candidates have run a successful and honest (lol) business in their prior lives, scaling in size according to the position they were seeking.
This from CNN and Janet Yellen the other day:
**********
Calling the rapid collapse of Silicon Valley Bank a "new phenomenon," US Treasury Secretary Janet Yellen said the circumstances that led to it could very well happen again.
"The Silicon Valley Bank situation showed an overwhelmingly rapid run on a bank. We've never seen deposits flee at this rate," Yellen said Wednesday during a Senate hearing on Financial Services and General Government.
"Ma(n)y depositors were tech firms that work with venture capitalists that also bank. It's essentially shouting fire in a movie theater," she said.
"Now in the world that we live in, although this was a small community and a disproportionate share of Silicon Valley bank deposits, this kind of thing may more readily happen."
Yellen said SVB's plight could mean that stress tests on banks and some of the assumptions that go into modeling the pace at which deposits might flee banks might need to be "updated and rethought."
"This is a new phenomenon. We haven't seen this before."
**********
There have been numerous runs on American banks in it's history. Most notably would have been in 1980's and 1990's when hundreds of small savings and loans were wiped out because of exactly this "phenomenon." To have zero knowledge or understanding of this coming from someone with her position in the Federal Government, underlines what Bill has been saying all along.
Clowns are indeed running the circus.
It's essentially shouting fire in a movie theater," she (Janet Yellen) said.
OK, and that's exactly what should be yelled when the movie theater is engulfed in flames and people want to get out alive, Janet you dumb ass.
Not all clowns are silly-stupid. There are also the malevolent ones in horror shows. While I still tend to think of Yellen and Friends as the former, I’m seeing more evidence of the latter. The Fed apparently knew raising rates was creating banking stress as early a 9 months ago but let it go critical anyway. It seems to me that their new policies have the intent of forcing large depositors out of regional banks and into a select few “systemically important” banks. After much of the herd is rounded up and safely in the big banks, the stragglers still in the weakened regional banks should follow. One can only speculate as to what might be next. Regardless, these are not funny clowns.
Once all the depositors are rounded up it becomes a lot easier to outlaw physical cash and foist a Central Bank Digital Currency on everyone.
The old “squeeze chute” ploy. Probably much like what Bill uses to inoculate (and castrate) his herd.
I just checked the party affiliations of all the sponsors of the CBDC Bills and over 2/3 are sponsored by Republicans. I haven't taken the time to read any of them yet (I probably will take a look at Nevada and California where I own real estate and both sponsors are Democrats), but I can only hope that the Republicans are trying to get out in front of this nightmare and put some guardrails on it. Though I don't know how that's even possible if it's going to be controlled at the federal level.
I saw that and thought the same thing. I put CA in the D column though because you have to look long and hard to find an R politician in that state anymore.
A “new phenomenon”?! (Angry emoji face)
What a load of BS. She literally assured us weeks ago that the financial system was safe.... practically foretelling that brown smelly stuff was on its way... when a politician tells you to look left, best watch what’s coming from the right
If you want to know just how f#$cking stupid Yellen truly is, read FedUp by Danielle Martino-Booth. On Amazon. I just sent a copy to Kudlow because he said he thought Yellen did a good job as Fed Chair. I think he was just being polite. Still.....
So after the 2008 Shit Show the banking industry decides to recapitalize itself by raping savers and the productive class through interest rate repression. Now after 13+ years of interest rate repression we have Shit Show 2. So who's going to pay for the sequel? Ah, savers and the productive class says the apparatchiks. "Systemically Important" and 'Essential Worker' are terms cooked up by the apparatchiks to grant them the ability to arbitrarily screw whoever they please with no accountability.
What's even more disgusting is the Mindless, Statist, Government Apologist, Sheeple who willingly ingest this shit with a smile on their face. Heads they win tails you lose :-(
Heads they win tails you lose is exactly right. It's just like dealing with the Internal Revenue Service.
I wrote the piece about candidates and Janet Yellen specifically a few days ago. Attached it to Bill's missive on Argentina. Deleted it from there and put it here, as it seemed more appropriate.
After writing the piece below, I asked ChatGPT what and ideal candidate seeking public office should look like. Here is what it said.
**********
Highlight relevant experience: Political office seekers should emphasize any previous experience in public service, such as elected or appointed positions, volunteer work, or work for political campaigns or advocacy organizations. Relevant professional experience, such as in law, business, or education, may also be relevant.
Showcase leadership and management skills: Candidates should highlight any leadership or management experience they have, such as leading a team or organization, managing a budget, or implementing policies or programs.
Emphasize communication and public speaking skills: Effective communication and public speaking skills are essential for political candidates. Candidates should highlight any experience they have with public speaking, media interviews, or writing.
Highlight community involvement: Candidates should showcase their involvement in their local community, such as through volunteer work or serving on community boards or committees. This demonstrates a commitment to public service and an understanding of local issues and concerns.
Education and credentials: Candidates should list their educational background, including any advanced degrees or certifications that are relevant to the position they are seeking.
Personal qualities: Candidates should highlight their personal qualities that would make them a good candidate for political office, such as integrity, dedication, and a commitment to serving their constituents.
**********
Interesting. So I asked ChatGPT what Janet Yellen's resume looked like? That was an eye opener.
**********
Janet Yellen is an American economist and policymaker who served as the 15th Chair of the Federal Reserve from 2014 to 2018. Here is a summary of her resume:
Education:
Bachelor's degree in economics from Brown University (1967)
Ph.D. in economics from Yale University (1971)
Academic Career:
Assistant Professor of Economics at Harvard University (1971-1976)
Lecturer at the London School of Economics (1978-1980)
Professor of Economics at the University of California, Berkeley (1980-1994, 1997-2006)
Chair of the President's Council of Economic Advisers under President Bill Clinton (1997-1999)
President and Chief Executive Officer of the Federal Reserve Bank of San Francisco (2004-2010)
Government Service:
Member of the Federal Reserve Board of Governors (1994-1997)
Chair of the President's Council of Economic Advisers under President Barack Obama (2010-2013)
Chair of the Federal Reserve (2014-2018)
United States Secretary of the Treasury under President Joe Biden (2021-present)
Honors and Awards:
Fellow of the American Academy of Arts and Sciences
Honorary Doctorate of Law from Brown University
Adam Smith Award from the National Association for Business Economics
Yellen's career has been marked by a strong focus on macroeconomic policy, including monetary policy, financial regulation, and labor economics. She has been recognized as a leading expert in her field, and her contributions to economic policy have had a significant impact on the United States and the global economy.
*********
So if someone with SO much experience and apparent knowledge could not see the forest for the trees, could not see this coming, could not prognosticate what is about to happen due to their ill advised policy and decision making in the past, what can we, the serfs looking up on high for leadership through this turmoil, make of all this?
Someone's not telling us the whole story.
I note with interest that Janet Yellen received the Adam Smith award. Poor Adam must be rolling in his grave. She has given the free market a whole new interpretation. The invisible hand has been replaced by her's and her colleagues at the Fed.
Andre, I laughed out loud when I read that part. Adam Smith???
Central Planning is a fools errand. Those who don't imbibe the propaganda have known this for decades. AI won't do any better than our apparatchiks, but we'll have lots of sarcastic belly laughs at their expense :-)
Hi Mr. Whitfield -
One can but Hope.
I'll take sarcastic belly laughs over the current fearful, likely lethal ones any day...
So, what is to be done?
Violent revolution is almost always fatal folly, and always results in widespread, long-lasting societal animosity.
Impactful education of the middle class is currently impossible.
Voting is a joke - jet black humor. Democracy is the perversion of popularly elected government.
As far as I can see, prayerful, thoughtful Maximum Safety Mode is the only reasonable way to face our near (10-20 years) future and be part of the solution rather than part of the problem.
Long-term, we need to permanently engrave the historical and contemporary fact that the president/king/dictator is content to eat dust at the feet of the robber barons who stand erect behind the throne.
We have learned through sad experience that it is the nature and disposition of almost all humanity, as soon as they gain a little authority, as they suppose, they will immediately begin to exercise unrighteous dominion.
Don’t forget that after the last financial crisis of 2008. The Fed and The Government had to stimulate the economy. And after Covid they had to do it all over again! Failure not to stimulate would have led to a collapse of everything.
Or, maybe it wouldn’t.
Public servants chose to err on the side of caution!
And democrats chose lockdowns in order to stuff the ballot box with mail in votes!
They got elected but now can’t pay for anything except to tax/borrow more.
THAT MAKES THE POLITICIANS STUPID.
And same goes for the dumbasses who elected them!
Enjoy your stupid choices and watch your world end!
Hi Mr. Withrow -
Call me a skeptic (more likely a realist), but I'm still not buying the whole "They got elected..." part. You alluded to it yourself - what we have "leading" us now was not "𝗲𝗹𝗲𝗰𝘁𝗲𝗱" - it was fraudulently "𝗶𝗻𝘀𝘁𝗮𝗹𝗹𝗲𝗱"...
Lol, probably right. Everyone needs to leave democrat and republican parties. They both suck! Become Independent.
SE: You know that's not true...but live in your ideal world of anything is possible, if you believe enough. DW has the right idea..Become Independent. I'm more willing to do that because both parties do suck. I am automatically including the Fed..they should have been abolished long ago.
Hi Dottie -
Meh. Cognitive Dissonance versus reams of evidence.
Who knows what to believe, eh? As for me and my house, we will shun the Irrational Hatred and stick with Reality...
Hey brother Starboard, you see brother PGV around lately? He has me concerned…hope he didn’t do another Booster 😳
Hey Steve L. That made me laugh out loud, thanks!
Hola Steve -
Nope. Haven't seen him lately. My gut tells me he is enjoying one of his shared weeks at the beautiful barrier island resort he so loves, and his wife has forbidden him any screen time. I too hope all is well and expect the twin gifts of his knowledge and experience will return in the next week or so...
To be fair, it’s more accurate to agree that maybe there would have been a collapse of everything. But it seems to me that they didn’t avoid it. They postponed it. And by actually or virtually amalgamating, or setting in motion a process of amalgamating the world’s banking resources... may succeed in postponing it some more. Damn them.
They Loic. They papered over a debt crisis with more debt. This next one will be one for the record books.
Hey Donald. In 2008 they should have balled out no one. That’s called capitalism. That was not to save capitalism, that was to bail out their friends.
Soylent Green Is People!!!! It’s People! Aaaaahhhhh!!! 😂
Another banking financial scam sham on the way. But wait, Yellen says that the banking system is “sound”. So there, what can possible go wrong? Hahaha.
2008 Honest Ben (Bernanke) said no more big banks were going to fail, the statement was made during working hours, of course. Then after the markets closed, Feds seized Washington Mutual. 😂
What a beautiful scene that was indeed. Now we have Yellen’s assurance that everything is ok, they’ve got our backs. So keep your money in the bank, and watch it vaporize before your eyes soon, on live TV. Popcorn anyone!?! 🤣
ES: You might be on to something! hahaha.By the way, that was the worst movie I've ever watched. I would paid them NOT to show it.
What about Willy Wonka & The Chocolate Factory?
😂 J/K
ES: Five stars!
PENNYWISE from IT. That is they.
Yes Bill, those crazy cooks in our federal reserve and government, working under the executive chefs of our banking cartel. The aroma’s created by these talented satanic artist smells like something we’ve all been forced to eat in the past 💩…does anyone smell Chinese food 🤔
When we were children our parents used to talk about the benefits of saving penny’s in ‘Piggy Banks.’
Well now, Piggy Bank circa 2023, is a whole new construct and correct definition of many.
As to their advertising etc about saving money with these Piggy’s, as a sure way of accumulating a small nest egg....
Ok kids, actually really your saving it with the government. Wink! Wink!
Righty-Ho, Figaro!
Gotta luv U Bill, your unabashed truth makes me chuckle,...always.
A general thought.
It seems obvious to me that the next step in the elite/deep state/political play for managing the economic and social situation is to declare war and therefore martial law, like covid, and thereby avoid the trouble of staging the next presidential election.
All of the planned population control measures like cbdc's and killing a large number of our young (mostly) men and maybe general population would fall into place.
Food stamps and confiscated savings are also a logical consequence.
Simple!
Hey Graeme. Much agree brother.
Bill, This is not amusing to say the least,but good to know,all the information given by you and the commenter's,thanks.
Mark, you have to love Egon.
Here is the Treasury Report from Q3 2022 on this very topic.
https://www.occ.treas.gov/publications-and-resources/publications/quarterly-report-on-bank-trading-and-derivatives-activities/files/pub-derivatives-quarterly-qtr3-2022.pdf
Ho hum, just another day at the office (circus) for these economists (clowns). It states in this report that 4 banks hold 88% of all derivatives at that point. 88% of 195 Trillion or 172 Trillion. Lordy.
Luke, what could possibly go wrong??
For those that don't know what derivatives are, here is CGPT explaining it for us:
**********
Derivatives trading can be risky, and the level of risk depends on the specific derivative being traded, the market conditions, and the strategies being employed. Here are some factors that can make derivatives trading risky:
Leverage: Derivatives trading often involves using leverage, which means that traders can control a large amount of underlying assets with a relatively small amount of capital. While this can magnify potential gains, it also amplifies potential losses.
Volatility: The value of derivatives can be highly volatile, particularly during times of market stress or uncertainty. This means that prices can fluctuate rapidly and unpredictably, which can lead to significant losses.
Counterparty risk: Derivatives contracts are typically entered into with another party, such as a bank or brokerage firm. If the counterparty defaults on the contract, the trader may not receive the expected payout, which can result in significant losses.
Complexity: Derivatives can be complex financial instruments, and understanding the mechanics of a particular derivative requires a deep knowledge of the underlying assets and markets. Misunderstanding the risks and potential outcomes of a derivative trade can lead to unexpected losses.
While derivatives can be risky, they can also be valuable tools for managing risk and generating returns. Traders who engage in derivatives trading should carefully assess their risk tolerance, understand the potential risks and rewards, and use appropriate risk management strategies to protect their investments. They should also be aware of the regulations governing derivatives trading and ensure that they are in compliance with all applicable laws and regulations.
**********
The key to what Mark was talking about, is that these traders (aka clowns in monkey suits) have only one way to trade derivatives with that much exposure.
Leverage.
Which is great if the trade goes their way.
But if it doesn't, expect a lot of sad (clown) faces.
Mark. Paul Roberts is high on my list.
1 8 8 , trillion?!
Will read
Thanks for sharing