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Something to think about
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Reality speaks
Posted 11/27/2022 23:13 (#9953610 - in reply to #9952840)
Subject: RE: Something to think about


n. Illinois
This could be what brings it all down. the vast majority are interest futures bets, how many were hedging against lower rates and now find themselves having to make margin calls to keep the position open. (just substitute what you do with a corn futures position when the market moves against you) The interest rate protection racket is just that a racket that did not exist in the 1980's when Volker raised rates dramatically. We've had nothing but overall declining rates for 40 years now. There are a lot of traders running massive trades who never experienced interest rates going up let alone going up at the rate they are raising.

So who is going to run out of cash to cover their margin calls??? what happens when that happens?? Do one knows,

The folks running the Fed don't, The CEO of Goldman doesn't know. The CEO of JPMorgan Chase doesn't know. Get my point know one knows.

Edited by Reality speaks 11/27/2022 23:14
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