Scott E.D. Skyrm � April Collateral Shortage – Preview

Scott E.D. Skyrm � April Collateral Shortage – Preview: There was a severe shortage of quality AAA collateral in 1997 to 2000 when the government ran surpluses. A balanced budget for a long time would force the repo market to use collateral that was likely compromised and not pristine AAA collateral. With the need for collateral for interest rate swaps, balancing the budget of the US government is not really a good idea.

Comments

Post a Comment

Popular posts from this blog

Gary Anderson's Talkmarkets Articles by Subject

Image
Join Talkmarkets for Financial Information. It is free! https://goo.gl/QZff5Y

I have written a lot of vetted articles that are exclusive** to Talkmarkets. Sorting a portion of them by subject will give the reader an opportunity to make sense of it all. I am adding a glossary of terms at the bottom of this page.

For readers interested in economic subjects of the day, these top 30 themes are my efforts to make understanding economics easier:

1. China!

China Could Be the Next Basel Victim or Not

Trump May Shrink Shipping and Air Shipping Capacity Utilization

Trump's Punishment of China: The Start of a Radical Rejection of Foreign Capital?

Scott Sumner Destroys Financial Times Fear of China

2. Housing and AI Bubble Causes:
Fed Premeditated Mispricing of Risk in Housing, Oil, Junk Bonds and Other Markets 

Yes there WAS A Housing Bubble

The Great Artificial Intelligence Bubble and Scam

3. Great Recession causes:
The Federal Reserve Knew LIBOR Was Exploding in 2007 and Did Nothing
LIBOR Destroyed Subp…
Read more

John Mauldin Discusses What Could Go Wrong

This article was first published by me on Talkmarkets: http://www.talkmarkets.com/content/bonds/john-mauldin-discusses-what-could-go-wrong?post=118623&uid=4798

John Mauldin published an article regarding the economics of Donald Trump. I share many of his views. I think the article deserves to be discussed further.

It isn't as if John Mauldin is happy with the continual drive toward negative yields and the new normal. I believe he is like many, willing to fight for higher interest rates within reason and within the economic boundaries that exist. He is on board with the Fed, unlike other central banks, and is willing to risk recession to avoid negative rates:

Meanwhile, the Fed is in the middle of a long-overdue policy turn. There’s still a risk that they will find they started tightening just in time for a recession, which is also long overdue. I was convinced last summer that they would push rates negative in that scenario. Negative rates could yet happen, but I think they wi…
Read more

The Poison of Trump Comes From Murray Rothbard, Fascist Divider

There is further study in the articles I have cited for you at the end of this article. People must, must understand that Donald Trump is a divider of races and ethnicity, because at heart he is a fascist. Fascism seeks the purity of the races. Fascism is the opposite of what America stands for.  Keep in mind that Donald Trump is highly influenced by Anarcho Capitalist, Murray Rothbard. This is an email I sent to an author online. It is slightly muddled, but overall quite accurate in its assessment of Libertarian Murray Rothbard:

Hi Steve,
I agree with your article on Rothbard, mostly. However, as a British court ruled, Zionism is not the essence of what it means to be Jewish. Therefore, I hate antiSemitism, and embrace antiZionism. I have both religious and non religious reasons for taking this stand. And the court absolves me of racism. After all my natural father was Jewish. And more and more Jews hate Zionism. And Zionism is quite multiracial at this point.
So, Trump actually is …
Read more