assets…

The ECB and Fed balance sheets showed a decrease in QT assets, with the former dropping from €1.77 Trillion to €7.07 Trillion and the latter dropping by $1.0 Trillion.

ECB Balance Sheet QT: -€1.77 Trillion from Peak, now down to €7.07 Trillion. Shed 43% of Pandemic QE Assets Quantitative tightening (QT) powers along in the euro area. Total assets on the ECB’s weekly balance sheet plunged by another €75 billion over the week, to €7.07 trillion, the lowest level since December 2020. The ECB …

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Tightening policies worse than officially stated, the collateral value of fixed-income assets is diminishing rapidly and we are starting to see the huge deficits of the US government are pushing interest rates even higher

The significant decline in the market value of Treasury notes, bonds, and mortgage-backed securities, which make up over 80% of the Federal Reserve’s balance sheet, could potentially reduce the Fed’s assets by about $1 trillion, surpassing the impact of their QT policy. This would essentially bring their balance sheet back to 2020 levels, indicating the …

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U.S. Department of the Treasury, IRS Release Proposed Regulations on Sales and Exchanges of Digital Assets by Brokers. OPEN for comment!

by Dismal-Jellyfish Source: https://public-inspection.federalregister.gov/2023-17565.pdf How to comment: www.regulations.gov (use IRS and REG-122793-19 to identify your submission) 60 days is October 28th, 2023 60 days is October 28th, 2023 Press Release: The U.S. Department of the Treasury (Treasury Department) and the Internal Revenue Service (IRS) today released proposed regulations on the sale and exchange of digital assets by …

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Binance allegedly liquidating customer assets to prop up BNB. Their defense is that they “burn” some of their infinite BNB supply which is worth “so much more than their customer assets”. Anyone can burn trillions of spreadsheet coins. Just like FTT, its worthless.

by FearlessEggplant3036 If they sell any of it at $200 the price will crash to $0, so they do monthly burns eg. if they burn: 1 billion coins x $200 = 200 Billion dollars burned, so why would a company “that doesn’t care about hundreds of billions” scam/embezzle a few billion dollars worth of customer …

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Minutes of the Federal Open Market Committee, July 25-26, 2023: “Various participants commented on risks that could affect some banks, including unrealized losses on assets resulting from rising interest rates, significant reliance on uninsured deposits, and increased funding costs.”

by Dismal-Jellyfish Source: https://www.federalreserve.gov/monetarypolicy/fomcminutes20230726.htm Developments in Financial Markets and Open Market Operations: The manager turned first to a review of developments in financial markets over the intermeeting period. Market participants interpreted data releases as generally demonstrating economic resilience and a further easing of inflation pressures. The market-implied peak for the federal funds rate rose in response …

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Bearish curve’s steepening impacts risk assets through collateral effects and liquidity.

The bearish curve steepening we feared is fast becoming reality. The impact on risk assets occurs less through the textbook arbitrage channel and more via negative effect on collateral and hence on #liquidity @au_shareplicity @johnauthers https://t.co/VuMvsqnJQ4 — CrossBorder Capital/ GLIndexes (@crossbordercap) August 14, 2023 It's not the height of rates that destroys the economy but …

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Banks are in PAIN! Half of US banks with $11 trillion assets have lower assets value compared to debt liabilities, $2.2 trillion lower than book-value.

by Dismal-Jellyfish If half of uninsured depositors decide to withdraw, the losses due to CRE distress would result in up to 58 smaller regional banks becoming insolvent in addition to 186 banks that would become insolvent just due to higher rates. Wut Mean?: The U.S. banking system’s market value of assets is about $2.2 trillion …

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Regulators just unveiled new proposed regulations for banks with more than $100 billion in assets

Regulators just unveiled new proposed regulations for banks with more than $100 billion in assets Big banks would need to maintain more capital to protect against losses in lending, trading, and derivatives. Do you think big banks need to be regulated more closely? — Genevieve Roch-Decter, CFA (@GRDecter) July 27, 2023 pic.twitter.com/ilL6hX9DzN — Genevieve Roch-Decter, …

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FDIC observed some institutions incorrectly reduced the amount reported to the extent the uninsured deposits are collateralized by pledged assets; this is incorrect as the existence of collateral has no bearing on the portion of a deposit that is covered by federal deposit insurance!

by Dismal-Jellyfish Source: https://www.fdic.gov/news/financial-institution-letters/2023/fil23037.html The FDIC observed that some insured depository institutions (IDIs) are not reporting estimated uninsured deposits in accordance with the instructions to the Consolidated Reports of Condition and Income (Call Report). For example, some institutions incorrectly reduced the amount reported to the extent that the uninsured deposits are collateralized by pledged assets; …

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Lesson of the Day: If You Weaponize the Dollar and Confiscate Assets, Expect Retaliation

via Mike Shedlock: Russia seized the local assets of Carlsberg beer and yogurt maker Danone. It now threatens Austria’s Raiffeisen bank. Russia Seizes Western Yogurt and Beer As backdrop to the Raiffeisen bank story, consider the Bloomberg report, Russia Seizes Western Yogurt and Beer. President Vladimir Putin signed a decree in April allowing for “temporary” state control over …

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CMBS enters bargaining stage, liquidating assets, tidying balance sheets, industry stoicing; Bankcruptcy surge;M2 money supply is contracting at the deepest level EVER seen

For CMBS, it’s 2007 Right now is the bargaining stage for CRE—assets quietly being liquidated to meet redemptions, balance sheets tidying up, the industry stoically battening the hatches All trying not to panic Dry powder? Yes But there’s a storm on the horizon https://t.co/y6jVEw3C1k — Amy Nixon (@texasrunnerDFW) July 17, 2023 Fun Fact: Egg prices …

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Report: Biden Already Has ‘Unwritten’ Nuclear Deal with Iran, freeing hostages and releasing billions of assets

President Joe Biden has already reached an “unwritten” nuclear deal with Iran, under which the regime will stop just short of developing a nuclear weapon, leaving Israel unable to act independently to defend itself. That’s the analysis of Amos Harel, a columnist for left-wing Israeli daily Ha’aretz — who is no fan of Israeli Prime Minister …

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Recession ante Portas: Which Assets Perform Well in Recessions?

via Ronni Stoeferle It is considered the most anticipated recession of all time – the one looming in the US. And although countless indicators ranging from the yield curve, the Leading Economic Index (LEI) and PMIs to producer prices and international trade volumes have been pointing to a recession for months, it has not yet materialized in …

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Student loans are a large asset for Uncle Sam, accounting for 42.3% of total Federal assets.

Now you know why student loans will never be forgiven. https://www.advisorperspectives.com/dshort/commentaries/2023/06/09/feds-financial-accounts-what-are-uncle-sams-largest-assets https://www.fiscal.treasury.gov/reports-statements/financial-report/balance-sheets.html Then, drilling down on “Note 4.” https://www.fiscal.treasury.gov/files/reports-statements/financial-report/2022/notes-to-the-financial-statements4.pdf h/t PettyWitch

Infinity Q fraudulently inflated assets by manipulating valuations.

by Dismal-Jellyfish https://www.sec.gov/litigation/complaints/2023/comp25750.pdf SEC-registered investment adviser Infinity Q engaged in a fraudulent scheme that inflated by more than $1 billion the value of assets held by a mutual fund (the “Mutual Fund”) and a hedge fund (the “Private Fund”) Infinity Q advised (collectively, the “Infinity Q Funds” or the “Funds”). From at least February 2017 through …

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They are raising interest rates so we hoard cash, meanwhile they inflate the monetary supply to buy assets. We’re going to be left holding the bag.

by TheReignOfChaos Raise interest rates so the ‘sensible’ investment decision is to hold cash; why would they invest in assets and risk a market crash when cash is returning 5, 6, 7%? Meanwhile, buy assets as the currency inflates. Finally destroy the currency, leaving everyone holding money destitute. Force everyone to use a CBDC as …

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Bond managers predict a “nasty” recession, advising hedging risk assets.

Bond Investors Say a “Nasty” Recession in the U.S. Is Inevitable According to some of the world’s biggest bond managers from Fidelity International to Allianz Global Investors, the United States is heading for a recession. They’re sticking to their forecasts for a downturn that is “inevitable” and advise hedging any bets on risk assets. “Something …

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SEC files restraining order to freeze Binance US assets… Makes you wonder what’s coming next for Coinbase and others.

Directly from the court filings posted by the SEC. Makes you wonder what’s coming next for Coinbase and others. Follow us @KobeissiLetter for real time analysis as this develops. pic.twitter.com/FH6r017vBg — The Kobeissi Letter (@KobeissiLetter) June 6, 2023 Crypto exchanges extract U.S. Dollars and send them overseas. The SEC is effectively stopping the flow, causing …

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