Imagine you hold an asset of any type. At the moment, the asset XYZ is worth 1M$ according to the price quoted on the exchange. Now, what would be your instinctive reaction if you suddenly discovered that your asset XYZ is instead worth 100k$, but you can still go to...| JustDario
First of all, who the hell is the latest counterpart added to the #FED Standing Repo Facility: “Norinchukin Bank”? “Officially,” it is a Cooperative Bank owned by Japanese agricultural, fishery, forestry cooperatives in #Japan. Yes, that’s right, an “agricultural” bank from Japan got a seat at the #FED big boys...| JustDario
During 2023, we have discussed so often how (ridiculously insolvent) banks have made extensive use of “Hold To Maturity” accounting to the point that it is now more appropriate to rename it “Hide Till Maturity” (TwitterX). Dump any asset with a market value implying a steep loss in the HTM...| JustDario
Last week, I ventured a bit too deeply into the plumbing of the global financial system with the article “THE JPY (COUNTERINTUITIVE) DOOM LOOP – THE MORE JPY LOSES VALUE, THE MORE LEVERAGE IS FORCED TO COME OFFLINE, THE MORE THE JPY LOSES VALUE” and I apologize to all those…| JustDario
EXPLAINING AND SIMPLIFYING THE JPY (COUNTERINTUITIVE) “DOOM LOOP”| JustDario
WHY IS THE FED PREPARING TO BAIL OUT A JAPANESE BANK? BECAUSE OF THE “NORINCHUKIN” DANGER| JustDario
Newspapers have been cheering up the “deal” this week where Softbank managed Vision Fund successfully sold ARM 25% it owned to… Softbank. In September 2020, $NVDA agreed to buy the whole ARM from Softbank at a $40bn valuation paying in cash and shares (NVIDIA), but it preferred to lose $1.25bn…| JustDario
THE WORLD ECONOMY DESPERATELY NEEDS A NEW PAUL VOLCKER| JustDario
WHICH BANKS ARE AT RISK OF GOING BUST IN A LIQUIDITY CRISIS BECAUSE ALREADY (RIDICULOUSLY) INSOLVENT?| JustDario
WELLS FARGO – A CASE OF TOO MUCH WINDOW DRESSING AND TOO LITTLE COLLATERAL?| JustDario
