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.
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Thursday, May 6, 2021
Fed RRP vs. lumber price
Post suspension Reserve Asset flow displacing credit flow to lumber industry.... unit price increases... as commercials are normally short...
In a credit contraction the price is going to move opposite the direction that the previous finance was being used...
In a non speculative market like lumber the market is typically short ( commercials selling their production forward) so the finance was enabling a short position... so if credit is then removed the price will move up towards the longs...
Bonds right now have built up a big speculative short position so if credit is removed then the price will start to move towards the longs...
The full text of Shakespeare's plays and sonnets side-by-side with translations into modern English. No fear Shakespeare is available online and in book form at barnesandnoble.com.
How about in plain, simple English, Matt.
ReplyDeleteIn a credit contraction the price is going to move opposite the direction that the previous finance was being used...
ReplyDeleteIn a non speculative market like lumber the market is typically short ( commercials selling their production forward) so the finance was enabling a short position... so if credit is then removed the price will move up towards the longs...
Bonds right now have built up a big speculative short position so if credit is removed then the price will start to move towards the longs...
Lumber may eventually go “liquidation only” in here..,
ReplyDeleteThank you.
ReplyDeletehttps://www.sparknotes.com/shakespeare/
The full text of Shakespeare's plays and sonnets side-by-side with translations into modern English. No fear Shakespeare is available online and in book form at barnesandnoble.com.