Comments
Transcript
-
SMThe issue with repo rate "hiccups" has been rates spiking higher. By definition this means that there have been "too many" bonds and not enough inter-bank funding (i.e. reserves). The interviewee is arguing the opposite which I think is demonstrably ridiculous... if the issue in the repo market was excess demand for limited bonds (since they are silo'd by QE) ... then borrowers of the bonds/lenders of the cash would be saying take my money and pay me less (eg. 0%) ... which is exactly the opposite of the repo "hiccups". He has a hold of the wrong end of the stick.
-
BHIt is a nice movie!
-
JMThat was a most valuable interview. Top 3 2020 and it's late December. Thanks. Still buzzing.
-
SM'Transparency'. Great interview .. Thank You! What I learned in this great interview is there is no transparency; intentional layers of obfuscation by design. As I learn the history leading up to the 2008 crash, this interview makes me think of non-transparency of mortgage back securities and the 40:1 leverage ... are we in the 2020's version of CDO's. It just does not seem the incumbent financial systems can be rehabilitated or reconciled since it require politicians to act. Might one with this knowledge go 'responsibly' long on BTC .. :). I will have to view again; so much to learn. 1). UK does not have leverage limits .. for reals? should we expect the next Bear Sterns and Lehman Brothers to be coming from Canary Wharf? 2) Whether it is CB's or the off-balance sheet, both have miserable transparency. Digital currencies helping the velocity issue one would think also improve transparency. However, transparency is warts and all. I don't grasp how improving the transparency of negative interest rate and debt laden assets will not accelerate the slowing down of money velocity; so many 'M's, not sure which one is correct here. :) 3) For those that choose to get out of the system (i.e.; Bitcoin) they're out. So is this a game of musical chairs as more opt to Bitcoin leaving less appetite for the legacy system?
-
RTThis interview is one of the most enlightening one that I've come across in RV. Will definitely have to watch it a few times over to absorb it better. Having watched it only once, I am stumped that the global banking system is in such a huge mess.
-
DTThis would be a fantastic one for Steven Van Metre to break down.
-
JYJeff Snider mentioned Dr Singh in one of his Eurodollar University podcasts with Emil Kalinowski. Would be great to hear Jeff and Dr Singh also hash things out!
-
BRCan this be done with the framework of the current federal reserve act: 1. Facebook revives their Stablecin, Libra, by first applying for a commercial bank license. 2. They sell their own stock to the existing commercial banks in exchange for bank reserves. 3. The newly acquired bank reserves are collateralized to back Libra coin.
-
SVPlay close attention to two important observations / conclusions from the interview: 1. Rehypothecation in segments of the financial system outside of the purview of the Central Bank eventually leads to systemic risk, and this applies to stable coins of any variety (non-sovereign backed money), even 1:1 reserves or algorithmically collateralized stable coins. Eventually it ends in trapped liquidity in the issuers and unknown impacts on M2. 2. Digital assets play a unique role in instant settlement bearer instruments, that negate some of the risks of rehypothecation and are distinct from the necessity of leverage. By their very nature they increase the velocity of value in circulation and hence have the potential of being a more potent instrument of monetary and fiscal policy, or even treasury management schemes, than leverage. Outstanding interview! +100.
-
LLAwesome interview! But one thing still puzzles me: how come all this leverage have not created inflation (besides on financial assets!)?
-
MJMore of Caitlin Long please!
-
RSThis is the first time I ever heard an explanation of why someone would want to own a negatively yielding sovereign bond other than for the potential capital gain available if rates go ever further negative.
-
IMPhenomenal interview. Definitely need an explainer video from Van Meter or Jeff Snider.
-
JWReally fantastic discussion, thank you.
-
MBExit
-
DGSo does this mean that Q.E and repo money is getting to stonks via the shadow bank system?
-
DSAnything financial that is hidden is a temptation for abuse. DLS
-
NBAn incredible interview,
-
MMPhenomenal discussion. Get Dr. Singh and Jeffrey Snider together to further discuss!
-
PTHere we go again; the over-levered money taking home the gains with the Central Banks being their backstops and the public picking up the losses. We will continue this rewarding of risk-taking until the Central Banks and governments stop bailing out the too-connected-to-fail. The Central Banks must put in penalties or only partially reduce downside losses of the riskier behaviors so that the market can more reasonable assess risk. Overleveraging due to being too-connected-to-fail must be de-incentivized or the appeal of such behavior will continue (at the general public's expense).
-
JEFWIW, this makes a ton of sense providing context of what's going on when things bottle up, how negative interest rates can be tolerable, and is very valuable for laymen to understand we're not living in your grandfather's basic fractional reserve system = $ trillions in "money printing" = hyperinflation environment anymore. Neat to hear what might lie in the future re custody and settlement, but even with that, as a standalone, this is very hard to contextualize unless you already have experience with the broader mosaic. Per some comments, I look at this not as tradeable information, but rather as context for better comprehension of reading the matrix and what the future may hold. Great interview! Thanks Cait and Dr. Singh!
-
RMVery, very interesting! Central banks want to control all the money. A nice impetus to avoid control with Bitcoin.
-
DNThis is why I signed up for real vision. Excellent excellent segment. This is true discussion and analysis of banking. Collateral sources & uses + wholesale markets needs more attention on this platform. Please get those responsible for financial resource management at G-SIBs to do follow up interviews on how it all comes together.
-
DLAmazing discussion about things I want to understand more of, regrettably I think Caitlin forgot to slowdown and synthesize the information from Mr Singh (she did in the very beginning). Would love to see a recap video re-explaining these things, clarifying diff terms etc
-
DOI missed the use of graphs in the interview... such a complex discussion deserves more graphs to explain it better... Maybe Dr. Singh could come back and make a ''expert view''??
-
BDAs someone who has been in money markets for 15 years this was very good. Also Caitlin is a very good interviewer in this space so hopefully they use her more.
-
BDThis is the first time in the last several months of watching real vision at 2x speed that I had to watch at 1x speed to properly follow along. That's not to say that I dont understand what's going on and why central bank bank government bond purchases are deflationary not inflationary. The pacing of the interview is good along with the explanations along the way. Thanks to Jeff snyder who's a regular contributor on this platform I already had a simple understanding of this incredibly complex topic. In the future if it is allowed I would definitely like to see Brent Johnson or Jeff have a discussion with Caitlin or Dr Singh. In the future if someone more knowledgeable than me could articulate how Richard Koo (from balance sheet recession and previous guest) and central bank buying most of the high quality collateral would impact the future. I was REALLY surprised that Dr Singh had at least a decent understanding of how stable coins worked or even that he knows that DeFi exists. I know this may be difficult for both but if Dr Singh or Caitlin could come back on real vision some time in the future as both we're really great. Always thrilled when there much to be learned from these conversations and that Real vision makes them happen.
-
DSAn additional avenue of investigation is to arrest or to pay someone who knows the plumbing from the inside to explain the real world. The scam will already be played out if we try to uncover it from the outside. The social safety net for banks and shadow banks is way to expensive for broke tax payers. In addition it drives responsible financial institutions out of the market. DLS
-
MDThis one was a bit over my head. My first thought is that I would love to have Steve Van Metre break this interview down in a future segment, so that it is a bit more understandable. My second thought is that I would love to have Jeff Snider interview Dr. Manmohan in a future segment.
-
DPThis was extremely good but like others have said, this was a bit over my head with lots of jargon and acronyms. I also feel like this discussion didn't see the forest for the trees a bit too. This was good information but it's not clear to me what the full implications are of this. What is the implication for the value of treasuries and the yield curve long term. Value of the dollar? How will this affect inflation? How will bank profits, both regional and mega-banks, we affected. How can we use this information to avoid the Japanification of Europe and the US? How will countries' economy be affected by those who stick with the status quo system? Some further interviews with these topics and/or guests would be great. I think both Jeff Snider and Raoul would be great interviewers with Manmohan.
-
NLThank you both. I will be playing this one few times.
-
CTGreat discussion! Interviews like these provide the educational content that will separate Real Vision from everyone else. The interview left me with a couple of questions. 1. How large is the shadow banking system? 2. Does anyone know the relative size of leverage in between quarterly or yearly reporting? 3. What impact does delayed settlement have on liquidity? Also, imo, rehypothecation of digital assets will only add a band-aide of additional capital to the currently over leveraged system. The current banking system is trying to pull crypto networks into the existing framework. For owners this is the quickest way to monetizing these ideas / investments but I don't know if it is the best path forward. Is is possible for RV to produce a 5-7 page paper based on this discussion that includes data on policy changes from the GFC effected liquidity, the repo markets, and how crypto could disrupt things?
-
mcCertain key points are similar to the same ones that were made when Steve V. Metre interviewed with Jeff Snider on 10/6.
-
bbWow! My head exploded over the last Caitlin interview and the complexities of custody.... Re-hypothecation - sounds like a magic spell. Financial wizardry indeed. Every day I learn more and know less and less.
-
WSI think it would be useful for many of us if RV would kindly provide a dumbed down version of this interview.
-
lyIt would be nice if Caitlin Long comes back and discusses how digitalization can unwind the plumbing of the monetary system! This is super interesting!
-
CDFabulous to have Caitlin Long doing interviews!
-
TPNice fragile leveraged opaque banking system you have there. It would be a shame if something came along that was transparent, put the power of transacting in people's hands, and generally didn't engage in the garbage behavior of your legacy system. Crypto is going to eat these bankers' lunch. It has in some ways already.
-
MJBrilliant.
-
RMWow!!! Really, really deep, but also really, really interesting (I think Jeff Snider might even learn something by listening to this!). Thank you Caitlin and Dr. Singh for this fascinating discussion.
-
MLReally informative, thanks guys