Debunking Bloomberg with Fadhel KaboubThe Lens
No, MMT Didn't Wreck Sri Lanka
Stephanie Kelton | Professor of Public Policy and Economics at Stony Brook University, formerly Democrats' chief economist on the staff of the U.S. Senate Budget Committee, and an economic adviser to the 2016 presidential campaign of Senator Bernie Sanders
https://stephaniekelton.substack.com/p/no-mmt-didnt-wreck-sri-lanka
6 comments:
That Barclays ETN blunder keeps getting bigger
Up to date take from today.
https://the-blindspot.com/that-barclays-etn-blunder-keeps-getting-bigger/
Dr. Susanne Trimbath’s Naked, Short and Greedy regarding her decades-long quest to shine a light on Wall Street’s fails-to-deliver problem. Trimbath’s big claim is that all three practices (fails-to-deliver, naked short selling and stock borrowing) have the effect of doubling each share traded. The consequences are more shares in circulation than the company has issued. A.k.a over-issuance.
" I was at a securities lending conference on Monday and I made a presentation on the corporate governance implications of securities lending which is directly what we are talking about here today. An interesting fact that someone brought out was that at their last annual meeting, Bank of America received 130% in votes: they received 30% more votes than they had shares outstanding. That’s just the number of people who actually voted their shares! You can imagine how many shares were sold beyond what they actually authorized and issued. If you think that you can sell 30% more shares than exist and not have a direct impact, not only on the share price but also directly on the company, then just look at what’s happening to banks right now. That’s the impact that happens. "
It doesn’t matter if they fail to deliver..
They just establish a net position with the exchange and it’s all settled “cash settled”…
This is how it’s done under Dodd-Frank post “GFC”..
It’s just a financial position…
iow if firm has 1M share float at $100 per share then firm has 100M cap but a hedge fund could take a 150M share short position …
If the stock goes up $1 thrn the hedge funds position degrades by 150M and they may have to post more margin $…
Your maki g a reification error if you believe in “fails to deliver” …
The whole thing is abstract financial accounting…
“Fail to deliver” = “lends the deposits”
BOTH reification errors…
I wanna be a market maker.
Start off by making 2 markets one for wishes and the other for prayers.
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