New York | Last week's volatility in the market for fed funds gave a lot of equity managers an opportunity to brush up on their understanding of the workings of the short-term money markets. The Fed of New York was forced to offer cash to the Street in the form of forward repurchase agreements all week. These activities are likely to continue.
R. Christopher Whalen is a bit confusing. He claims the Fed is nationalizing the overnight market. But, the Fed is socialist currency banker. Socialist currency issuance has not been farmed out, it always ultimately comes back to the Fed.
So, if we want to keep the Fed out of the overnight market then try a non socialist currency banker, go talk to Zuck about libra. But we have to at least recognize the central banking is monopoly socialism in the current theory. Thus the socialist will act as market maker for anyone using dollars in overnight loans, that is the definition of central banking.
No comments:
Post a Comment