Where the dip is in the curve, finance likes to watch that and it is 23 basis point now.
Look at the 23 basis as a entry fee into an isolated long term bond market. Like paying a fee and you can skip the debt cartel and jump right into JPM's liquidity net.
Sandbox is a flow theory, and Treasury flow is bottle necked, clearly, there is segmentation in the treasury market, some productive restructuring going on. The New Fed needs a Moore's law update, a new contract, get competitive.
Finance knows of the New Fed plan, they are not necessarily against it, mainly because we get a more competitive Fed and a large finance market at lower cost. Finance knows we get endogenous gains back to the New Fed. It is about Moore and Morse, believe me. JPM got hooked, so there is a huge Pareto move in getting the New Fed. I am ready to pay the higher price.
No comments:
Post a Comment