Bank Of America – Monetary Plumbing Crisis Imminent

I think it was a big success and I still got this little Bernanke helicopter, helicopter Ben from Chris and I will keep it on my shelf for as long as protons don’t decay which I think is permanently it’s gonna be it’s gonna last a lot longer than I will. I’m gonna be dead in you know a few decades along with the rest of us watching this video. Here’s some more of a thought well it’s just that Yom Kippur is coming and it’s a pretty scary day especially with what’s going on in the world and I think the end game will hit in the year 5785 and I’ll say more about that at the end of this video but for now I have noticed that all of my ramblings on the repo markets and the clogs and the plumbing and all the esoteric nonsense that I talk about on this channel all the time.

The mainstream media is starting to pick up on it. By starting I mean that the more scholarly corners of the mainstream financial news media which is not that great but it’s a little bit marginally better you know marginal utility is like an Austrian thing so it’s marginally better than the crap like CNN and Fox Business and other garbage but so point is I went into zero hedge this morning as I am want to do and I find this. Top article former fed trader warns we are this close to another repo crisis I don’t know what this is but I think we’re close too so I look at the little subtitler the sensitivity of SOFR to reserves correlation signaled nearing El Clor.

El Clor. El Clor. You’re on Marklar everyone and everything is referred to as Marklar. Take me to your El Clor. We sense a similar dynamic is present today Mark Cabana or as I call him Mark Copa Cabana the repo guru of Bank of America whose name I am familiar with because I researched this crap and so what do I do I go to google news and I put in some keywords Mark Cabana SOFR El Clor. Let’s see whoa look at that could it be that one probably let’s click on it and what do we have as the headline well is a repeat of the 2019 repo crisis brewing pain and sofering that is so clever I love this guy Robin Wigglesworth he’s got a perfect name for funny sounding financial news articles and he’s got this little cartoon here I really like this I could be friends with this guy I should call him up anybody got a connection to Robin Wigglesworth I really want to get to know this man so we have here boo nothing boo nothing boo nothing SOFR just spiked by the most in 2020 ah that is very clever he’s basically saying everything I’ve been saying on the endgame investor in this one little article thanks to Mark Cabana Mark Copa Cabana who is now saying this on Bank of America we’ll get to his paragraph in a second at the end of September there was a big spike in the secured overnight finance making that’s the SOFR that’s the repo rate that I talk about all the time this may already be putting you to sleep but it’s potentially a big deal so please stick around not putting me to sleep I’m really excited by this crap and so I’m going to stick around so going down to the third paragraph here he says here you can see how SOFR generally traded around the central point of the federal reserves interest rate corridor and fell when the fed rate cut cut rates by 50 base points in September but on the last day of the month it suddenly spiked well you can see the little spike here oh my gosh the thing is we see since July here that the repo rate has gotten a lot more volatile a lot less stable and this here is the 50 basis point cut in here is the jump in repo rates on September 30th and October 1st above the fed’s target range of what is now five percent of the upper corridor and it hit 5.05 percent so it seems like the standing repo rate standing repo facility does not work quite very well the key is that cabana now realizes he may have been wrong and that I may have been right he mentioned me by name he didn’t really I’m just saying that just to inflate my own ego because that’s all I care about really cabana says he was initially too hasty in dismissing the spike as driven by a short-term collateral shortage and unusually large amounts of window dressing by banks meaning he’s saying he thought initially that this spike was only because banks tend to stuff money into the reverse repo facility at year ends and quarter ends as we saw on September 30th which was the quarter end but he thinks now that he thinks now that it’s more serious than that so he says here in a note published yesterday this is Robin Wigglesworth talking in a note published yesterday he admits cabana admits to overlooking something potentially more ominous reserves seeping out of the banking system yes this is where I talk about reserves bank reserves in the banking system that are at 3.18 trillion now I think they rose by about a hundred billion dollars last week because money was poured out of the reverse repo facility but that’s a different issue I talk about that in the end game investor on substack please click the link in the description below to get a more coherent version of what I’m saying here which is a little bit more randomly because tonight is young kipper and I’m in a little bit of a rush and I have to talk about wonky monetary policy nonsense that I only learned about as it’s happening so I’m just learning to fly like all of you are so here is Mark cabana again where he’s quoted like the macro neutral rate L-chlor is only observed near or after it is reached we have long believed says Mark cabana of bank of America L-chlor lowest consumable level of reserves is around three to three point two five trillion which is exactly where we are now let’s just skip down to cabana’s conclusions his emphasis in bold says Wigglesworth repo is heart of markets heart of markets heart of dark markets ekg measures heart rate and rhythm yes that’s true mr cardiologist repo ekg flags shift yes that’s true repo ekg cardiologist monetary guy cash drain has supported spike in repo fed should take repo pulse and sense shift if fed too late to diagnose 19 repeat bottom line stay short spreads with fed behind on diagnosis you are great 100 000 pesos put on show stop the infamous el guapo basically what’s going on here is that cabana admits the mainstream is admitting that we are very near the next repo crisis which will necessitate the end of qt of quantitative tightening of the shrinking of fed’s balance sheet a move to qe which means buying more bonds to add assets onto the fed’s balance sheet to distribute liquidity into the banking system and once we get to that point we’re going to have a very good test of the more conspiratorial view that the medical emergency that happened in 2020 was really an excuse to print money because of their apocalypse of 2019 i am not taking a position on that i don’t really know it is possible i’m not rejecting it out of hand but we’re going to have a good test of that because exactly what happened in 2019 is about to happen in the next few weeks because reserve levels are falling because of the rate cut and they will continue to fall when the next repo clog happens they’re going to switch to quantitative easing from quantitative tightening and back in 2019 2020 we had five months from the point when quantitative easing was restarted on the apocalypse of 2019 until march 2020 nobody knows what exactly happened then i’m not going to talk about it here because there are certain keywords that i’m really not supposed to say on this outlet but my feeling is that we’re going to get another excuse to print trillions of dollars and i have a fear that excuse is going to be all out war with god forbid russia involving israel and his bala and iran and all those other players may god bring us through the end game young kipper is tonight 57 85 the fate is sealed tonight according to jewish tradition i pray that the entire world get through this endgame and if i offended any of you this past year my apologies please send me an email if i really did offend you so i can apologize to you personally at endgame investor i wish you all happy new year for the world 57 85 and hopefully you’ll be the epic of peace as described in ecclesiastes in the book of cohelet written by king solomon the end of the epic of war the beginning of the epic of peace and good luck to the world and have a happy endgame to all
[tr:trw].

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