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Steven  VanHeyningen's avatar

Thanks for the explanation of the Banking system/ Rep Mkt and QT.....

Not sure I completely understand it.....have to re-read it more slowly....

Sounds like it could be a significant factor in the FED's decision and timing of Rate Cuts.

A Dovish factor....

A lot of moving parts in the Banking System these days and massive amounts of Treasuries

underwater....Seems like there is a growing pressure at the Short End and that the Financial

Condition of the Regional Banks is getting more strained ???

The Big Banks with their Trading/Investment Banking and Too Big To Fail Doctrine, will

always survive and almost have what they used to call the "Greenspan Put"....

Don't think that's going to change anytime soon...

Although I wish legislation would be passed to trim back the Risks the Big Banks take and

strengthen the Regional banks........that's well above my Pay Grade....

MM funds are bleeding off the Regional Banks depositors.....that is an inherent flaw in the system

It introduces systemic risk to the Regional Banks.....

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Anthony's avatar

I have a theory. WS is Powell's, the Fed's, and Pres/Congress's Biggest Boss. Therefore, the latest 'Powell Pivot', could be his End of Yr Bonuses guarantee to WS. After all, Powell ain't known as PE Powell aka Private Equity Powell for nothin. Would explain all the Open Mouth Fed Operations since start of the new yr.

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