#treasury bonds being the slow and steady cousin of the stockmarket
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The US market is fucking terrifying.
#GME#The further I go into this rabbithole the crazier I feel. What? What the fuck?! Someone hold my hamd#The entire economy is propped on air and its only a matter of time before hyperinflation cracks it in half and leaves you with the pieces#This is 2008 all over again. They weren't even punished but rewarded with tax payers money so of course. Of course. Of course. They do it a#ain#this time its shorting the treasury bond market to oblivion using the repo market#treasury bonds being the slow and steady cousin of the stockmarket#which many americans use to keep their retirement savings as it is relatively risk free#and the repo market is what keeps the market floating working much like a pawnshop where Market Makers(big money) can turn securities into#fast cash. it is essentially short term loans#and the collateral they collect is now the treasury bonds that normal working people put their life savings in#in 08 this exact thing happened with mortgage backed securities#The interest rate in 2008 on repos started climbing as the cost of borrowing money went through the roof. This happens because the collater#l is no longer attractive compared to cash. There wasn't ENOUGH $$ in the system back then and now the opposite is happening.#Ever since March 2020 the short-term lending rate (repo rate) has nearly dropped to 0.0%. The repo market is just lending free money#and then the fed prints infinite money to bail them out#with all that money going around the treasury bonds keep declining#hedgefunds are so confident that they will continue to decline that they are SHORTING THE US TREASURY BONDS#FICC has $47000000000 (BILLION) just in deposits for unsettled treasury bonds#the margin on that could be astronomical. so when push comes to shove#shit man. The hedgefunds and banks will fall like dominoes and the dollar will be worthless once the margin call comes#citadel has their own repo firm by the by.#Palafox trading.#80% of its $123218147399 in assets under management belong to entities in the Cayman Islands#this is all so fucked. its fucked. I feel like fucking crying.
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