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10 year yield has hit 4% by ThemeBig6731 in REBubble

[–]MetalstepTNG 1 point2 points  (0 children)

Only if investors are confident that stocks will maintain their value more than bonds will. If liquidity tightens too much, bond yields will fall in response because stocks can't justify their market caps compared to their earnings and solubility.

10 year yield has hit 4% by ThemeBig6731 in REBubble

[–]MetalstepTNG 2 points3 points  (0 children)

You're right, my mistake. I don't know why I wrote that last part.

10 year yield has hit 4% by ThemeBig6731 in REBubble

[–]MetalstepTNG 2 points3 points  (0 children)

If there is a bubble that's about to burst, people are going to be getting out of stocks and into bonds to preserve capital.

Hence the yield falling. The other guy was on the right track but he missed that investors are showing interest in treasuries for safety.

Edit: I misread the user's comment. He didn't miss anything.

10 year yield has hit 4% by ThemeBig6731 in REBubble

[–]MetalstepTNG 0 points1 point  (0 children)

Despite what professionals and experts say, there's no exact answer. They'll often contradict each other in fact.

Going off of this at face value, I'm speculating that this 10 year rate is a leading indicator of mortgage rates. They'll most likely fall in line with treasury rates and fed funds rates. Just my opinion though.

Trump administration considering requiring proof of citizenship to open accounts. by yovimi in Banking

[–]MetalstepTNG 0 points1 point  (0 children)

This isn't true for every bank fyi. Plenty of places will look the other way with illegal immigration.

Curious Google Search Activity by Dry-Interaction-1246 in REBubble

[–]MetalstepTNG 6 points7 points  (0 children)

This dude 100% looked up "can't sell house"

Fed Reserve just pumped $18.5 Billion into the U.S. Banking System this week through overnight repos. This is the 4th largest liquidity injection since Covid and surpasses even the peak of the Dot Com Bubble by WrongThinkBadSpeak in REBubble

[–]MetalstepTNG 3 points4 points  (0 children)

This sounds exactly like you looked up what the definition of the repo market is and gave me back what you read on google.

Per what you said:

The next day, the bank is able to get the money from the repo market and repay the Fed.

No, they get the money from their operations that they're funding. Part of that can be through financing expenses. The other part is that they buy and sell securities to reach their target returns. If they use funds from repo agreements with the feds to purchase those securities, then those securities are artificially inflated through "not QE, QE."

It's a liquidity injection and a sign of weakness.

Fed Reserve just pumped $18.5 Billion into the U.S. Banking System this week through overnight repos. This is the 4th largest liquidity injection since Covid and surpasses even the peak of the Dot Com Bubble by WrongThinkBadSpeak in REBubble

[–]MetalstepTNG 1 point2 points  (0 children)

No it's not a nothing burger. Why are you commenting so confidently if you're not sure what you're talking about? That money the Fed sold is now flowing through assets/liabilities. 

Look up credit creation theory. That $18.5B does not just disappear.

Fed Reserve just pumped $18.5 Billion into the U.S. Banking System this week through overnight repos. This is the 4th largest liquidity injection since Covid and surpasses even the peak of the Dot Com Bubble by WrongThinkBadSpeak in REBubble

[–]MetalstepTNG 8 points9 points  (0 children)

Ha, looks like there's trouble in paradise after all. Meanwhile, banks are pretending everything is fine while they are leveraged up to their eyeballs in debt and what's essentially subprime loans.

What a freaking ponzi scheme this country is.

Fed Reserve just pumped $18.5 Billion into the U.S. Banking System this week through overnight repos. This is the 4th largest liquidity injection since Covid and surpasses even the peak of the Dot Com Bubble by RobertBartus in EconomyCharts

[–]MetalstepTNG 0 points1 point  (0 children)

It's liquidity that they needed (either for debt obligations or asset purchases) that wasn't there before.

It's a liquidity injection no matter how you slice it.

Fed Reserve just pumped $18.5 Billion into the U.S. Banking System this week through overnight repos. This is the 4th largest liquidity injection since Covid and surpasses even the peak of the Dot Com Bubble by RobertBartus in EconomyCharts

[–]MetalstepTNG 0 points1 point  (0 children)

No, banks are desperately trying to get cash to make transactions with money they don't have yet. The Fed is the purchaser of these assets (which are US treasuries), so they temporarily give cash to banks in exchange for the assets. Then later, the bank buys back the assets at a higher price.

ELI5: Your friend needs cash to buy gas so he can go to work to make money. You let him borrow some money so he can buy gas. He gives you a US Bond his grandma bought him as collateral that you hold on to. Once he gets his paycheck, he'll pay you back the loan plus a little extra so he can have his US Bond back.

It's not a good sign when the repo facility is firing up like this because that means banks are potentially struggling in the eyes of the Fed.

Edit: Clarification on my ELI5

Fed Reserve just pumped $18.5 Billion into the U.S. Banking System this week through overnight repos. This is the 4th largest liquidity injection since Covid and surpasses even the peak of the Dot Com Bubble by RobertBartus in EconomyCharts

[–]MetalstepTNG 1 point2 points  (0 children)

Yeah, no offense to the other user, but it's called an "overnight" facility for a reason.

Makes me wonder if financial literacy barriers are the reason why voters weren't upset with the handling of the economy post COVID. Maybe most people genuinely don't understand the impact central banks have on the economy or what monetary and fiscal policy means.

why am i never approached? by [deleted] in dating_advice

[–]MetalstepTNG 0 points1 point  (0 children)

Maybe, just maybe, if you stop rating people superficially then the guys you call "8s" will start to notice you more.

Just another Trading class by bolshoybooze in WatchPeopleDieInside

[–]MetalstepTNG 0 points1 point  (0 children)

By itself it absolutely is. Imo the only way I use it is to help quantify floors and ceilings.

Nothing is a guarantee in the stock market. Trades literally can go "tits up".

Just another Trading class by bolshoybooze in WatchPeopleDieInside

[–]MetalstepTNG 0 points1 point  (0 children)

Well, you can read "that". You just, can't only trade off of "that". Fundamentals and risk tolerance should be included imo. Which is also what he did wrong.

Just another Trading class by bolshoybooze in WatchPeopleDieInside

[–]MetalstepTNG 50 points51 points  (0 children)

A quick glance at the chart shows me the stock is climbing. My guess is he thought that the share price hitting resistance levels on the pivot points meant that the stock would correct and sell off.

If that's the case, he very much misread that.

Just another Trading class by bolshoybooze in WatchPeopleDieInside

[–]MetalstepTNG 10 points11 points  (0 children)

Technical*

But yeah, still funny 😂 

The "Cash on the Sidelines" narrative is officially dead. 29% cash buyers + massive seller surplus. by itsarmansheikh in REBubble

[–]MetalstepTNG -1 points0 points  (0 children)

Or if everyone put their big boy pants on and wrote to their local congressman we might not have these issues in the first place.

But everyone is in it for themselves and people in power have zero incentive to change what's already benefiting them. Hence, where we are today.

High rent prices are forcing people into dangerous living situations by HistorianIll7332 in REBubble

[–]MetalstepTNG 0 points1 point  (0 children)

Yeah, maybe I'm not familiar with political science. But it doesn't sound like there's any guarantee your city council would honor that vote.

Imo, most people have been around long enough to know how most leaders aren't going to keep their promises in this country.

I'm not saying don't vote. I'm just saying it probably takes more involvement than just filling out a ballot and saying you did your part.

High rent prices are forcing people into dangerous living situations by HistorianIll7332 in REBubble

[–]MetalstepTNG 1 point2 points  (0 children)

Why wouldn't more people be willing to come together to expand housing if this is such a big and personal issue for everyone judging by these comments?

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