🚨 Bitcoin NOT at all-time high yet! 🚨 I developed this formula a long time ago and have been observing it. When the founder of ADA (Charles Hoskinson) said that the previous Bitcoin all time high was $69,000 based on the value of the dollar in 2021, I remembered my formula. The essence is quite simple: multiply the sum of the Fed's liabilities, the US budget...
Reverse repo market cooling off. Let's see how this affects the Fed's positioning, considering the liquidity implications. Expecting a 6-8 month lead time for the liquidity to make it's way to the market. 1. Banks pulling liquidity to backstop any liquidity crunch 2. Banks expecting the fed to pivot, so they can get better returns lending that money out...
Seems the FED really walked themselves into a terrible situation going with the whole, let's kick the can down the road and deal with it later. Man, they really should have increased interest rates earlier but now, seems the "everything" bubble is popping one by one. Equities and crypto took a beating and it seems mortgages are showing signs of weakness. For...
Lookie lokkie here... Ouch again. Panic. Gonna abate? Bulls seems to believe so. We'll see.
As I have long argued Reverse Repos were used to unwind QE by selling them in the open market (meaning short bonds). As such we have been tapering for over 8 months now and the yield curve has collapsed. Expect RR to drop when the FED starts to taper going into a slowing economy. The simple truth is that the market always finds a way to self-correct. The...