Yeah, I think a better terminology would be short squeeze. It’s sort of a dollar short squeeze. And, again, if we think about the Eurodollar development from things all the way back as – some things like banker’s acceptances – it’s essentially a short dollar system, where every participant in it is short the dollarOK, great, we can understand what is going on.
The current world is essentially network of escrow routers, but a huge proportion of the ledger services are denominated in dollars. Institutional traders engaging in robo contracts will pay a dollar interest charge, rather than hold dollars. The terms are short and the dollar markets very liquid.
They are short dollars in their contracts, they do not hold a small dollar account as they get through some sequence of adjustments to their portfolios. Now the Fed sops up dollars, the traders need to suddenly change and grab a window of dollars to avoid sudden interest charges.
Under these circumstances, the S&L robo pits will requant, rewindow deposits to loans with interest charges and gains. The requant is the squeeze, the generator is going to drop rank momentarily while the traders take a second look, get their deja vu moment. Then we go back, get about one and a half more savers than borrowers.
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