An economics, investment, trading and policy blog with a focus on Modern Monetary Theory (MMT). We seek the truth, avoid the mainstream and are virulently anti-neoliberalism.
Well if you think we should have a property regulated Deposiitory system it’s an appropriate policy adjustment...
Fed keeps adding now over $1T of non risk Reserve assets to Depository balance sheets “to lend out” in excess of what the same depositories are otherwise authorized to possess as a function of capital so they quickly shut down the depository system and cause chaos...
If you don’t see the incompatibility between the two independent regulatory functions you’re as dumb as they are....
This one is checkmate for me here for like the 1,004th time...
“ “MMT people will probably say it’s some sort of improper regulatory forbearance favoring the “banksters!”..“
And I’ll double down on this because MMT doesn’t have never had leverage regulation in their theory...
They dont understand how the banking/depository system is presently operating.... I know they say they do ... but it rather appears they don’t...
Their “the coin” is a perfect example they are all out there advocating for the 1T coin again ... if Treasury spends without issuing treasury securities thrn all USD savings creates reserve assets and depository system will do just what it did here and quickly shut down for insufficient capital...
That’s completely false Matt .....and you know it. “Leverage” is a bullshit term. It’s a concept that has to do with the discredited money multiplier. Many MMTers have spoken of banking regulation, which is leverage regulation. Mosler spent a lot of his early time talking about regulating banks form the proper side of the balance sheet......... the asset side not the liability side. You may disagree with his analysis but he did extensive analysis on banking and leverage regulation.
If you don’t have a regulatory leverage ratio what would prevent banks from buying every financial asset on planet earth and financing every real asset on planet earth?
Then you leftist morons would complain “the banksters own everything we’re serfs blah blah blah!”
“ Financial leverage ratios, sometimes called equity or debt ratios, measure the value of equity in a company by analyzing its overall debt picture. These ratios either compare debt or equity to assets as well as shares outstanding to measure the true value of the equity in a business.”
Take a f_cking Accounting course.... too stupid or lazy????
Yeah we have to shit can centuries of developed Accounting Science which works perfect and is a well regulated profession with public certification and continuing education requirements because you people are too stupid to understand it and too dumb to delegate it to the trained professionals....
Referring to people as garbage and calling someone else elitist?
Accounting science? HAHAHAHAHAHAHAHA. ITS FUCKING ARITHMETIC. And why are there so many ways of accounting.? Why not just one? The right way huh?.? Sounds like accounting is just looking at many diffferent things from many different angles! Sounds like an............... wait for it...... AN ART!
I can promise you I have waaay more science training than you do,. You don’t want to do THAT dick measuring contest I assure you
All your meaningless criticisms are simply about rules, made by governing bodies which can be changed. Accountants haven’t figured out some essential truth about shit. They just using “rules” to make measurements of, in this case, financial systems.
And the answer to your question about what might stop banks from buying every financial asset and financing every real asset................... LAWS and pitchforks. but at least you admit that left to their own devices that is exactly what they would wish and try to do, hence the apt term banisters. CHECKMATE
18 comments:
“ Why? It is not immediately clear what prompted Dealers to shun the Fed's repo operation, ”
LOL because the Fed dropped the RRR to 0% LAST WEEK dummies.... they don’t need them anymore....
These people are dumber than the Fed....
And we’ve been pointing this problem out for probably 3 years here....
They’ll never put it together and figure out what it means wrt what the Fed did in contrast in September 2008....
Never....
“one year”
That’s probably some rule where they can’t make a permanent change like this without some more thorough review of the policy change...
So they can only do a 1 year temporary rule change ....
And this is another one that came out of nowhere....
The zh dummies will of course see a conspiracy here...
MMT people will probably say it’s some sort of improper regulatory forbearance favoring the “banksters!”..
Meanwhile the incompetent Fed was literally bankrupting the banks until they changed this policy...
“MMT people will probably say it’s some sort of improper regulatory forbearance favoring the “banksters!”..“
So it’s not favoring anybody or favoring everybody equally?
Well if you think we should have a property regulated Deposiitory system it’s an appropriate policy adjustment...
Fed keeps adding now over $1T of non risk Reserve assets to Depository balance sheets “to lend out” in excess of what the same depositories are otherwise authorized to possess as a function of capital so they quickly shut down the depository system and cause chaos...
If you don’t see the incompatibility between the two independent regulatory functions you’re as dumb as they are....
This one is checkmate for me here for like the 1,004th time...
This is the same thing they did in September 2008 and caused the GFC...
This time somehow they made the necessary regulatory adjustment here at the last moment possible and maybe prevented GFC2...
“ “MMT people will probably say it’s some sort of improper regulatory forbearance favoring the “banksters!”..“
And I’ll double down on this because MMT doesn’t have never had leverage regulation in their theory...
They dont understand how the banking/depository system is presently operating.... I know they say they do ... but it rather appears they don’t...
Their “the coin” is a perfect example they are all out there advocating for the 1T coin again ... if Treasury spends without issuing treasury securities thrn all USD savings creates reserve assets and depository system will do just what it did here and quickly shut down for insufficient capital...
That’s completely false Matt .....and you know it. “Leverage” is a bullshit term. It’s a concept that has to do with the discredited money multiplier. Many MMTers have spoken of banking regulation, which is leverage regulation. Mosler spent a lot of his early time talking about regulating banks form the proper side of the balance sheet......... the asset side not the liability side. You may disagree with his analysis but he did extensive analysis on banking and leverage regulation.
No he didn’t...
“The coin” proves my case...
They understand the CAR , Capital Asset Ratio... and the RRR, Reserve Requirement Ratio...
COMPLETELY IGNORANT of any of the other leverage ratios...,
They’re LUCKY that the morons never did their stupid “coin”...
Would have crashed the whole system....
If you don’t have a regulatory leverage ratio what would prevent banks from buying every financial asset on planet earth and financing every real asset on planet earth?
Then you leftist morons would complain “the banksters own everything we’re serfs blah blah blah!”
Here:
https://www.myaccountingcourse.com/financial-ratios/financial-leverage-ratios
“ Financial leverage ratios, sometimes called equity or debt ratios, measure the value of equity in a company by analyzing its overall debt picture. These ratios either compare debt or equity to assets as well as shares outstanding to measure the true value of the equity in a business.”
Take a f_cking Accounting course.... too stupid or lazy????
Yeah we have to shit can centuries of developed Accounting Science which works perfect and is a well regulated profession with public certification and continuing education requirements because you people are too stupid to understand it and too dumb to delegate it to the trained professionals....
The Accounting people won’t interfere with your finger painting.... you shouldn’t interfere with what they are trained in...
You leftist pieces of garbage are so elitist it’s sickening...
Referring to people as garbage and calling someone else elitist?
Accounting science? HAHAHAHAHAHAHAHA. ITS FUCKING ARITHMETIC. And why are there so many ways of accounting.? Why not just one? The right way huh?.? Sounds like accounting is just looking at many diffferent things from many different angles! Sounds like an............... wait for it...... AN ART!
I can promise you I have waaay more science training than you do,. You don’t want to do THAT dick measuring contest I assure you
All your meaningless criticisms are simply about rules, made by governing bodies which can be changed. Accountants haven’t figured out some essential truth about shit. They just using “rules” to make measurements of, in this case, financial systems.
And the answer to your question about what might stop banks from buying every financial asset and financing every real asset...................
LAWS and pitchforks. but at least you admit that left to their own devices that is exactly what they would wish and try to do, hence the apt term banisters. CHECKMATE
Banksters
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