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Reddit Posts

r/CryptoCurrencySee Post

What Ultimately Drives Big Bull Runs?

r/CryptoCurrencySee Post

What are the worst coins you hold?

r/CryptoCurrencySee Post

Binance regulator crack-down and MBS funding

r/BitcoinSee Post

Could BlackRock be Trumped by the Saudis?

r/CryptoCurrencySee Post

MacroEconomic Considerations

r/CryptoCurrencySee Post

BTFP and how the Fed and US Treasury decided to print additional $4.4 trillion (12.03.2023) - implications for crypto

r/CryptoCurrencySee Post

BTFP and how the Fed and US Treasury decided to print additional $4.4 trillion (12.03.2023)

r/BitcoinSee Post

Some context for the current banking problems

r/CryptoCurrencySee Post

The US Government is about to gaslight the failure of banks as a failure of crypto. Dont be fooled - the bank failure has nothing to do with crypto, and everything to do with banks buying treasuries/MBS and regulatory failure

r/CryptoCurrencySee Post

Silicon Valley Bank moment explained

r/CryptoCurrencySee Post

Banks going under could be bullish

r/CryptoCurrencySee Post

US Dollar (USD) Whitepaper

r/CryptoCurrencySee Post

Heads up: Pace of Fed's QT Doubles starting September. They will offload $95 BN off their balance sheet every month. In between, we will get another rate hike too.

r/BitcoinSee Post

The apocalyptic reality of Bitcoin without ethical guidance

r/CryptoCurrencySee Post

Why are so many of you people "HODLing nomatter what"?

r/BitcoinSee Post

PSA: Bitcoin as a Commodity will blow up the derivatives markets - My prediction.

r/CryptoCurrencySee Post

Prove me wrong: Cryptocurrency will eventually get hacked by a military-grade spyware like Pegasus 2

r/CryptoCurrencySee Post

Banks like Goldman Sachs and others were publically bullish on crypto for the last few days. Now the market dips. This is their playbook. They does the opposite of what they preach.

Mentions

That is exactly the point. Food and fuel ARE VOLATILE. MOSTLY UPWARD. When Biden took office, the USA was ENERGY INDEPENDENT. MBS could go pound sand for all we cared. We weren't buying one drop of his shit. Joe's executive orders cratered that on Day 1 and soon he was over in Saudi Arabia kicking MBS' boots, begging him to sell us more oil. This is true madness. It's borderline treasonous.

Mentions:#USA#MBS

That's not how this works, That's not how any of this works. If you want a measure of inflation that tells you how much the cost of living is increasing just use headline inflation, gas and food and everything else is in there. It is published right next to the CPI. It bounces around all over the place because food and oil prices change so much. But if you want to understand what is happening to the value of money headline inflation is not a good measure. It has too much volatility. I don't want the fed jacking up the interest rate every time MBS decides to cut oil production because his 12th wife is on her period and he's having a bad day; then cutting them when he opens the taps after he got some. Businesses need stability to operate. By stripping out the most volatile elements they get a usable measure so they can make rational decisions. It's not some fucking conspiracy. If they tried to fudge the numbers it would become obvious within a year or two (If not sooner). The error stacks and would soon be much larger than they can hide, or they would have to " catch up " and post massive inflation numbers. dictators in other countries have tried to do it, but it doesn't last long before it anyone who can do a little math sees what's happening. The real problem is when unscrupulous journalists and politicians use the wrong measure because it supports their lies.

Mentions:#MBS

Yes, this is classic BS from random influencers. The use of USD for global payments is actually at all time high right now. I still think Saudi and maybe other gulf countries are prime candidates among major countries for adopting BTC, but this is just misinformation. They are also not going to renounce their alliance with the US. Saudi is as US aligned as it has ever been in the last 50 years, with MBS in power. https://x.com/bowtiedmara/status/1797745503326646693?s=61

Mentions:#BS#BTC#MBS
r/BitcoinSee Comment

>Your deposits are simply converted to loans. Car loans, home loans, student loans. Your bank deposits are FDIC insured even if there’s a bank run... Nope. Banks *are not* and *have not been* using a fractional reserve system for close to a century *if not more* (that goes for either central bank issued "reserves" or prudentially retained "reserves" aka a portion of customer deposits). When banks lend, they *create* deposits. From a 2014 report from the [Bank of England - PDF](https://www.bankofengland.co.uk/-/media/boe/files/quarterly-bulletin/2014/money-creation-in-the-modern-economy.pdf) >In the modern economy, most money takes the form of bank deposits. But how those bank deposits are created is often misunderstood: the principal way is through commercial banks making loans. **Whenever a bank makes a loan, it simultaneously creates a matching deposit in the borrower’s bank account, thereby creating new money.** *The reality of how money is created today differs from the description found in some economics textbooks:* **Rather than banks receiving deposits when households save and then lending them out, bank lending creates deposits.** *In normal times, the central bank does not fix the amount of money in circulation, nor is central bank money ‘multiplied up’ into more loans and deposits.* There goes the money multiplier. In reality, banks *do not loan out other people's money*. Even when there were reserve requirements after the late 1800's, they largely fulfilled a clearing and/or regulatory function and were not a prerequisite for bank lending. There are no reserves being fractioned. Banks *create* deposits by lending, they do not get them from "elsewhere". **Now... What does a bank run look like?** Since banks don't warehouse cash (digital or otherwise).. they *create* the most used monetary format (deposits)... We can look at examples like SVB. Folks that left SVB just transferred deposits from one institution to another. Banks *are* this circulatory function (moving deposits around). When the banking system is healthy (and the management of the bank isn't silly), then the institution replaces the deposit liability with borrowing by pledging assets (e.g. treasuries, MBS, ABS, etc). What could be called a "bank run" today.. only occurs if a bank has no ability to put up collateral, or can't find a counterparty to borrow from due to perceptions of risk (even when the bank does have the appropriate collateral).

Mentions:#MBS#ABS

Just be aware. The privatization under the guise of austerity is a recurring play. I’m still a little curious why the Roman Catholic Argentinian Milei joined a fundamentalist Jewish organization called Chabad the week after he took office as president of Argentina. https://jewishinsider.com/2023/11/javier-milei-argentina-president-elect-ohel-chabad-lubavitcher-rebbes-grave/ There is an interesting common denominator in Chabad network. https://www.timesofisrael.com/inside-anatevka-the-curious-chabad-hamlet-in-ukraine-where-giuliani-is-mayor/ https://jewishcurrents.org/our-oligarch https://www.politico.com/magazine/story/2017/04/the-happy-go-lucky-jewish-group-that-connects-trump-and-putin-215007 Winning World War 2 ended the systemic genocide of Jews in Europe and established the Jewish state of Israel. With that establishment came a migration of Russian Jews as well, both to Israel and to the United States. In fact most of the migrants to Israel are of Russian origins. https://www.reddit.com/r/MapPorn/s/A2ojrtIc3Y https://desk-russie.info/2021/09/06/the-russian-diaspora-a-battlefield.html Mostly good people who just wanted a better opportunity for themselves and their families. But to quote the old Yiddish proverb- “one rotten apple spoils the others” In a very Russian move, Stalin used the opportunity to clear the gulags of the worst of the worst and sent them to Palestine. Technically they were Jewish, but they also happened to be psychopaths and murders. https://www.ncbi.nlm.nih.gov/pmc/articles/PMC139050/ In the internment camps they networked with other thieves and murderers on their way to and from all corners of the earth and as criminals tend to do, stole things and murdered people. It was a perfect storm. The worlds worst people hid behind the good people and were able to use legitimate Judaism as a shield to cover their corruption. If anyone poked too closely they would simply call it anti-semitism and anyone with a conscience would do a fast about face. Anyone without a conscience is probably already in on the con. It makes for a highly effective camouflage but when you track it backwards and watch for the unique crossovers it makes it much easier to track corruption. Over the years there seems to have developed some patterns within or behind a sect called Chabad. It is not new to humans. It seems to repeat itself every few generations. The pharisees of the Old Testament and Talmud finding their “technically legal” work around that allowed them to walk more than 40 steps on the sabbath was a warning, not a road map, but some hiding behind the Chabad movement seems to have taken it as a sort of GPS for their current criminal activity. In Ukraine an oligarch named Kolomoiskiy started Privatbank which didn’t exist on paper but was taking and absconding with IMF money. When the IMF figured it out they began demanding that Zelensky have Ukraine, and more specifically innocent Ukrainians, pay it back before the fund would extend any more. https://eurasianet.org/how-an-embattled-ukrainian-oligarch-has-kept-his-grip-on-an-economic-empire Kolomoisky is loyal to Putin and money therefore he used the leverage as a sort of defacto control over the Ukrainian government that Putin lost control of when Yanukovych and trumps soon to be campaign manager Paul Manafort were run out of town during Ukraines Maidan revolution in 2014. Kolomoiskiy is also heavily involved in Chabad. New York Postnypost.comBusinessmen accused of Ukraine money laundering gave millions to New York ... Time Magazinetime.comHow Paul Manafort Helped Elect Russia's Man in Ukraine Trump and Kushner are beholden to the CCP, Putin/Russia, and MBS (and UAE) for loans and business ventures. It’s just massive Kompromat at a corporate industrial level. In Ukraine, Maidan (The revolution of dignity) was, effectively, every sane Ukrainian realizing that the tax of corruption to the old soviet mob model where everyone pays up to the top man was wholly unsustainable. Russia has become so prolific at it that it consumed all the value in Russia and concentrated it into the hands of a select few oligarchs that happen to be Putin’s trusted circle. Most all of them have 3 passports. Russian, Israeli, and United States. Their common denominator was organized crime and money laundering. Because Ukraine is a 2 front war against Russia on the front lines and oligarch corruption at the rear, anything that detracts from the war front is a threat to Ukrainians existence. Seeing and identifying the money laundering networks that the kremlin uses becomes a necessity of survival. This in turn leads to the cocktail of trump laundering the Russian mobs stolen money, first through Atlantic City casinos until some of his casinos managers began seeing discrepancies in the numbers and started asking questions. All three executives, and two pilots were killed in a 1989 helicopter accident that trump was pulled off of at the last minute by a very insistent Roger Stone. https://www.nytimes.com/1989/10/11/nyregion/copter-crash-kills-3-aides-of-trump.html Kolomoisky (optima ventures) also happens to own the hotel that trump based his “stop the steal” rally out of in Cleveland as well as most of the blighted commercial real estate downtown. News 5 Cleveland WEWSwww.news5cleveland.comWho really owns the property that's falling down? The New York Timeswww.nytimes.comOpinion | American Real Estate Was a Money Launderer's Dream. That's Changing ... There is a consistent pattern across the U.S. of Putin friendly oligarchs doing minor variations of this same pattern with commercial real estate. Mainly buying a lot of it and letting it rot. This doesn’t make much sense on the surface. It isn’t until you fully grasp the insatiable greed that these handful of morally bankrupt men are driven by that you start to see the full picture of the plan Justin Kennedy (justice kennedys son) was the inside man at Deutsche bank that was getting all trumps toxic loans approved. No other bank but Deutsche bank would touch trump and his imaginary valuations. If trump was trying to avoid paying taxes he would be valuing everything low. Not high. Why? Because Deutsche bank was infested with Russian oligarchs.

Mentions:#MBS
r/BitcoinSee Comment

Its gotta be either a middle eastern country or Prince like MBS

Mentions:#MBS
r/BitcoinSee Comment

Yeah, I’m for real. I don’t think so, but I’ve spent countless hours studying bitcoin, so for me, I feel very comfortable, and having most of my net worth in BTC.. also, I guess I wasn’t entirely accurate with my percentages because I do own a fair amount of real estate (completely paid for ((no mortgage)) that generates amazing cash flows); so it’s *technically* more like 45% BTC, 45% real estate, 5% stocks, and 5% cash. I’m not at all worried about the volatility, I *understand what BTC IS* and I’ve actually come to really enjoy the volatility, it’s exciting! And for me (can’t speak for others) it’s very easy to cash out of as I bank with an extremely sound local bank that’s been around for awhile with a legit balance sheet sans a bunch of toxic MBS. It’s definitely not for everyone, I’ll give you that.

Mentions:#BTC#MBS
r/BitcoinSee Comment

Nope, Saudi Arabia is looking to switch to bitcoin. MBS want to incorporate crypto as the currency of the future paired with that city they are building called The Line. These current prices are about to look cheap.

Mentions:#MBS
r/BitcoinSee Comment

Agree with your premise, but I feel there needs to be a caveat inserted into this assumption. Retail home purchasers only looking to find a place to live aren't the ones driving this real estate speculation. The guilt liess with institutional and foreign investors buying out whole chunks of land and placing 500 homes in a development, or a whale purchasing a whole hi-rise. If it were simply retail investors, we wouldn't see these wild fluctuations, and, instead the price appreciation would be much more modest, just barely keeping ahead of inflation. Oh! The MBS investors in the 2007-08 crash helped things along too. Word on the street is they're back, too.

Mentions:#MBS
r/BitcoinSee Comment

How would you like a free beenie baby, tulip bulb, MBS, thousands of internet stocks, a South Seas certificate, a RR bond.....

Mentions:#MBS
r/BitcoinSee Comment

The rates are high because they don't and can't rehypothecate your collateral, unlike fiat based loans or loans based on MBS, and we've watched those institutions blow up repeatedly with devastating consequences for everyone, except the cantillionaires. With time, market competition, increased Bitcoin price and reduced volatility, these rates will either come down, or the tradfi system will burn to the ground around an indestructible foundation of Bitcoin from which a new, open, transparent and FAIR monetary system will emerge where the cantillionaires and the plebs have equal opportunity. We're still early. Hope it happens in my lifetime.

Mentions:#MBS
r/BitcoinSee Comment

I think we will probably move to a world where bitcoin gains a large chunk of central bank asset holdings, along with foreign bonds, MBS, and other possible reserve assets (gold?). But bitcoin is a fundamentally better store of value than any of those other vehicles. And it will continue its slow march to become the world's preferred reserve asset. Timeline is anyone's guess, but I believe thats where things are headed.

Mentions:#MBS
r/BitcoinSee Comment

>In 2008 the thing that caused the financial crisis was interest rates being raised from 1% to 5%. It is the raising of interest rates that always causes something to break and this time around we have raised rates from 0% to 5.5%. Sorry, but you lost me there. The 2008 crisis happened due to over-leveraging by hedge funds, who then couldn't meet their obligations when the market soured (Lehman Brothers had a leverage ratio of more than 30x). The mark-to-market requirements for MBS was the other factor, which forced companies to value their mortgage-backed derivatives based on market demand - when the banking regulators allowed in-house valuations then the crisis magically disappeared. IMO, the value of crypto like Bitcoin is decentralized finance, in which money cannot simply be printed and destroyed at the whims of a central authority. The bailouts and unprecedented money printing in the aftermath of the 2008 crisis (which ultimately culminated in the recent bout of inflation) is why Bitcoin exists.

Mentions:#MBS#IMO
r/BitcoinSee Comment

MBS is stacking!

Mentions:#MBS
r/CryptoCurrencySee Comment

There is no other explanation for his capitulation to Putin, not to mention Jared Kushner getting 2 billion from MBS in Saudi Arabia. Trump is so obviously compromised, you'd have to be brain dead to ignore it.

Mentions:#MBS
r/CryptoCurrencySee Comment

I'm saying that it wasn't clear to the market which MBS securities contained bad loans and which contained prime loans. It was this uncertainty about the quality of the underlying loans that led to the price collapse of the MBS market. Mortgage underwriters absolutely understood the riskiness of the NINJA loans, but since they could package those loans into MBS and offload the risk, while earning the origination fee they didn't care.

Mentions:#MBS#NINJA
r/CryptoCurrencySee Comment

How so? The GFC story goes as follows: 1. Mortgages are packaged into securities, but it's not clear which mortgages underly the MBS. 2. MBS are given high ratings AAA. 3. MBS are used as collateral in repo transactions and other liquidity transformation activities. 4. Housing market collapses as values were driven by loose underwriting standards - subprime NINJA loans. 5. No one has a clear understanding of what loans underly each MBS security. 6. Price of MBS collapse - step 3 counterparties issue collateral calls and demand immediate repayment. 7. Lehman Bros doesn't have available funds to meet collateral calls as MBS are trading at pennies on the dollars. 8. Lehman bros collapses and because it is interconnected to lots of other financial institutions it creates a cascade of stress and failures. By 2009 the RMBS market had recovered - the high rated (AAA to AA) tranches faced minimal actual losses despite trading for 10 cents on the dollar in 2007. The GFC was ultimately caused by a lack of information - the appeal of smart contracts in investments is that they create public ledger of the details. If investors had known which loans were backing the MBS and whether those loans were in deliquency there never would have been a GFC.

r/CryptoCurrencySee Comment

What do you mean I'm moving the goalpost? I haven't changed my point in any way, and I didn't say the market was sidelined, I said the market disagrees, i.e. the buyers think it's less, and the seller's think it's more. You are committing a fallacy when you claim the price of a commodity is justified by the amount of wealth already invested in it. They made the same fallacious argument about MBS back in 05, you know.

Mentions:#MBS
r/BitcoinSee Comment

This is what I’m afraid of. I’m still a little curious why the Argentinian president Milei joined Chabad the week after he took office as president of Argentina. https://jewishinsider.com/2023/11/javier-milei-argentina-president-elect-ohel-chabad-lubavitcher-rebbes-grave/ There is an interesting common denominator in Chabad. https://www.timesofisrael.com/inside-anatevka-the-curious-chabad-hamlet-in-ukraine-where-giuliani-is-mayor/ https://jewishcurrents.org/our-oligarch https://www.politico.com/magazine/story/2017/04/the-happy-go-lucky-jewish-group-that-connects-trump-and-putin-215007 World War 2 ended the systemic genocide of Jews in Europe and established the Jewish state of Israel. With that establishment came a migration of Russian Jews as well, both to Israel and to the United States. Mostly good people who just wanted a better opportunity for themselves and their families. But to quote the old Yiddish proverb- “one rotten apple spoils the others” The dreary conditions of mid 20th century Russian communism created the breeding grounds for oligarchs. Hiding behind the good people were the hypocrites using religion as a shield to cover their corruption. It is not new to humans. It seems to repeat itself every few generations. The pharisees of the Old Testament and Talmud finding their “technically legal” work around to allow them to walk more than 40 steps on the sabbath was a warning, not a road map, but some hiding within the Chabad movement seems to have taken it as a sort of GPS for their current activity. In Ukraine an oligarch named Kolomoiskiy started Privatbank which didn’t exist on paper but was taking and absconding with IMF money. When the IMF figured it out they began demanding that Zelensky have Ukraine and more specifically innocent Ukrainians pay it back before they would extend any more. https://eurasianet.org/how-an-embattled-ukrainian-oligarch-has-kept-his-grip-on-an-economic-empire Kolomoisky is loyal to Putin and money and therefore used the leverage as a sort of defacto control over the Ukrainian government that Putin lost control of when Yanukovych and trumps soon to be campaign manager Paul Manafort were run out of town during Ukraines Maidan in 2014. He is also heavily involved in Chabad. New York Postnypost.comBusinessmen accused of Ukraine money laundering gave millions to New York ... Time Magazinetime.comHow Paul Manafort Helped Elect Russia's Man in Ukraine Trump and/or Kushner are beholden to the CCP, Putin/Russia, and MBS (and UAE) for loans and business ventures. It’s just massive Kompromat at a corporate industrial level.

Mentions:#MBS
r/BitcoinSee Comment

They still remember the ICELAND government bought US government MBS

Mentions:#MBS
r/BitcoinSee Comment

I'm not saying it doesn't: >Domestic US tax receipts may only play a small part in the demand equation. >the fed can act as a buyer of last resort for treasuries. They can swap "reserves" for Treasuries, yes. >We have been following that formula fairly agressively since 2008 for sure. Yes. But I see that as due to the abandonment of bank-generated collateral (MBS, ABS, etc.. once widely used in repo). The banking system became irreversibly risk averse in that specific area.. leaving government debt (and govt guaranteed debt) as the preferred collateral.

Mentions:#MBS
r/CryptoCurrencySee Comment

By the FEDs [own admission](https://youtu.be/lK_rYS8L3kI?si=StkjQlB4yMgL_y0q) they flooded our monetary system with currency (~40% expansion in a year), then called inflation transitory and signaled to the CBS that rates would stay low, then the commercial banks loaded up on treasuries and MBS on the FEDs guidance, which turned out to be bogus as inflation was not transitory and they hiked rates so quickly that they caused a banking crisis that required an emergency liquidity program (bank term funding program) to stem the contagion

Mentions:#MBS
r/BitcoinSee Comment

>So the fed reserves are just to replace bad debt of banks to keep them afloat. So that shouldn’t increase m2 really or make inflation worse. Reserve issuance increases M0, M2, and M2.. but those don't actually measure the supply of money (no one measures it. M3, M4+ and anything further have been discontinued. Bank of England talks about the problem in the last quoted paragraph in the original comment). Fed reserves are the evolution of clearing certificates. They are a balance sheet line item for the Fed, and do not circulate beyond accounts member banks have with the Fed. In other jurisdictions, they can be given other names (e.g. "Settlement Balances"). They don't really replace bad debt, as move eligible security the Fed can hold, to the Fed's balance sheet. I'm not downplaying the "bailout" notion of this... however even the "toxic" sub-prime MBS acquired under TARP (went to the treasury instead), ending up being disposed of at a profit. >But banks making the credit in the first place is the problem. I think this is what George Gammon goes on about… that the fed are really not running the show. Gammon is a doom/gloom huckster. He also doesn't really "get it"... but does go into it a bit more than just pointing at a debt clock. >Well guess we take our money out of the banks. Btc… Well, that's what this sub proposes as a tenet. For most folks, the current system "works"; and it does... in fits and bursts. Global trade intermediation would utterly evaporate with any other currently available alternative.

Mentions:#MBS
r/BitcoinSee Comment

>1) so you're suggesting the amount of principal has remained constant since then? No businesses have been profitable or mortgages paid off? I don't see how you could get that from what I said. No, I'm not saying that. I'm saying that lending does not require "reserves". Either the self-selected prudential kind, or the central bank balance sheet line item. >2) collateral rehypothecation is BS and shouldn't be possible with proper due diligence by a lender in the first place. Collateral rehypothecation is the engine. Repo markets operate robustly using bonds, MBS, etc.. with many instruments rehypothecated several times over... providing wholesale funding for banks and near-banks.

Mentions:#BS#MBS
r/BitcoinSee Comment

I hope you are correct. But we know how taking real estate and making MBS' and CDO's and synthetic CDO's worked out.

Mentions:#MBS
r/CryptoCurrencySee Comment

Securitization Securitization is the process in which certain types of assets are pooled so that they can be repackaged into interest-bearing securities. The interest and principal payments from the assets are passed through to the purchasers of the securities. Examples … Examples of securitization Mortgage-backed securities (MBS) or asset-backed securities (ABS) are examples of securitization and can be divided into tranches. Asset-backed securities (ABS) are bonds backed by financial assets, such as auto loans, mobile home loans, credit card loans, and student loans. Tokenization Let's get specific: tokenization is the process of issuing a digital representation of an asset on a (typically private) blockchain. These assets can include physical assets like real estate or art, financial assets like equities or bonds, nontangible assets like intellectual property, or even identity and data. Tokenization is just a form of securitization. They call it something different but it's just the same shit. Tokenizing into a blockchain is a pool of assets. Securitization of mortgage debt in bond-like investments such as mortgage-backed securities and collateralized debt obligations was a big cause of the financial crisis. Securitization of home mortgages fueled excessive risk-taking throughout the financial sector, from mortgage originators to Wall Street banks. Tokenizing everything is just an everything bubble. Systemic risk.

Mentions:#MBS
r/BitcoinSee Comment

2. Is always anti climatic, because it takes time for the scarcity to kick in. 10. Won’t happen, orelse the homie MBS will be removed from power and a new puppet will be installed. He knows that too well.

Mentions:#MBS
r/BitcoinSee Comment

Qatar, Irán or MBS can build the best mines if they really wanted… No super power is accumulating

Mentions:#MBS
r/CryptoCurrencySee Comment

They want to allocate a portion of portfolios to digital. It is like the early days of MBS, it offers a low risk chance to massively push the potential returns. By allocating 5% of their portfolio, it allows then to push potential returns by 20-30%.

Mentions:#MBS
r/BitcoinSee Comment

The same way bankers used over priced real estate market, MBS and retirement accounts to unload their bags before the ‘08 crash, bankers will use over priced Bitcoin, and the etf, to unload their bags before the coming crash. Buckle up!

Mentions:#MBS
r/CryptoCurrencySee Comment

SOL will be the future MBS will be the next AXIE

Mentions:#SOL#MBS
r/CryptoCurrencySee Comment

I'm down with your TA on MBS

Mentions:#MBS
r/CryptoCurrencySee Comment

You listed the highest increase items from the inflation pie. Lowest treasury is 4.5% right now. Very few reasons to buy and hold duration assets, more likely better to active manage it and here MBS look relatively attractive for the convexity.

Mentions:#MBS
r/BitcoinSee Comment

Either they didn't understand them or, more cynically, they understood them but knew it didn't matter because they would get bailed out either way. What is certain though is they didn't bet against the economy. Holding MBS would be betting *on* the economy.

Mentions:#MBS
r/CryptoCurrencySee Comment

XRPL is so far ahead of BTC in terms of interbank market integration they aren't even in the same category. XRPL has verticals in every interbank settlements market. Customers will hold it for a few seconds but with daily utility comes Institutional investment and market makers making $ from the spreads. Ripplenet is the only product that removes central counterparties like JPMorgan from the interbank markets. Major tier 2 financial institutions don't want anything to do with Ripple because it destroys their monopoly they've had on the interbank markets for over 50 years. It levels the playing field for all financial institutions. Who needs JPM to be a correspondence bank when you can now download software from Ripple and it does all that and more for 10000x less overhead. The demand is there as evidenced by the obscene growth abroad in very small corridors. You as well as this subreddit have a very limited view of what Ripple has made. You think the entire business model is cross border transactions. When it's actually every interbank market not just Forex Remittance. It's Derivatives OTC, Securities, commodities, futures, interest rate swaps, CDO, MBS, anything that requires a central counterparty to facilitate a market by providing liquidity. Sullivan and Cromwell along with JPMorgan, GoldmanSachs, Citi, and the rest of the incumbents stand to lose the majority of their market share to Ripplenet and services like it. Ripple is by far the furthest along in this category.

Mentions:#BTC#MBS
r/CryptoCurrencySee Comment

Y'all need to make up your mind if you want some regulation or not. Bitcoin was born out of the 2008 financial crisis because there was simply no regulation surrounding the complexity of MBS, the legitimacy of Ratings Agencies, the leverage of hedge funds and their over-reliance on short term funds. If Bitcoin and other assets are to succeed and make sure '08 never happens again, some prudent regulation would be good for the sector IMO. Prudence of course is key.

Mentions:#MBS#IMO
r/CryptoCurrencySee Comment

Why? Because of Khashoggi? Because of Free Speech arrests? Honestly both of those aren't enough for me to hate him and I'm a Saudi myself, never we had a leader before him that gave me this much hope in the future of the nation. My life today is so much better. The women of my family finally can breath, they can drive, they can open bank accounts, they can own land and rent houses, they can educate themselves and wear whatever they want. All of these used to be either illegal or it required a permission from male family members. And all I have to do is to not say "Fuck MBS" on twitter with my face as the profile pic lol

Mentions:#MBS
r/CryptoCurrencySee Comment

Man I hate it that someone like fucking MBS is so competent with this kind of planning and execution.

Mentions:#MBS
r/CryptoCurrencySee Comment

A new reward is available on coinbase wallet for $5 of MBS of you sign up to UNJKD gaming world.

Mentions:#MBS
r/CryptoCurrencySee Comment

Given the low supply of crypto on exchanges, this is an absolutely enormous volume that will have some contagion effects on crypto. ​ Just consider that Bear Stearns was desperate for a bailout and same for Lehman Brothers because they carried so much in MBS that there would be contagion affecting the global market. ​ Now put this on the scale of FTX and the scale of the much smaller crypto market.. the effects could be devastating.

Mentions:#MBS#FTX
r/BitcoinSee Comment

I am honestly surprised MBS hasn't already demanded BTC in exchange for his oil. Why would he prefer fiat for his oil? Must be political reasons preventing him from doing so. He probably fears the wrath of the US Military who would need to bring "Freedom" quickly to SA.

Mentions:#MBS#BTC#SA
r/BitcoinSee Comment

evidently they aren't big enough to blow up the CME.... ;-). (or maybe MBS is afraid to anger the USA?)

Mentions:#MBS
r/CryptoCurrencySee Comment

Quantitative easing involves a country's central bank purchasing longer-term government bonds, as well as other types of assets, such as mortgage-backed securities (MBS). Economists tend to agree that QE works, but caution that too much of it can be a bad thing.

Mentions:#MBS
r/CryptoCurrencySee Comment

Have some copy pasta. This guy words it better than i ever could. *There's 4 big problems that I see with ETF's and I fully believe they will be at the heart of some future financial crisis.* *The 1st is that everybody is in them. Literally, ask anyone you know what is in their retirement portfolio, and 99% of the time it's almost all put into one of two things: an index-tracking ETF like SPY, VOO, or VTI, or some target retirement date mutual fund. If it's the latter, ask them what's in the fund - they'll probably have no clue, but guess what; i can guarantee it overlaps HEAVILY with those same broad ETFs. Look at the Vanguard Target Retirement 2060 Fund, which is what a lot of millenials would probably be in; 54% of its holdings are just sitting in another fund, the "Vanguard Total Stock Market Index Fund Institutional Plus Shares." The end result of all this is that virtually every single person on the planet super heavily invested into the same set of shares; AAPL, MSFT, AMZN, GOOG, NVDA, TSLA, BRK.B...you get the idea.* *The second is that literally nobody gets how these things work. Even the financial advisors who tout them as a sure thing don't have a clue what the mechanics of these things are. Besides all the operational shorting, something that a lot of people don't seem to realize is that a lot of them have liquidity multipliers that are used as part of allocations. Basically, they are built specifically to have only the most liquid securities, so that they can trade in mass (which is important for issuers because the fees are so low). The result of this, again, is that they are less diverse than you think - the same highly liquid securities are among the top holdings in almost any ETF you find.* *The 3rd thing is, they keep being presented to investors as diverse and "safe", when that couldn't be further from the truth. If nearly every single investor has a huge chunk of their savings in the same top 20 stocks, how is that diverse? You know how there's this weird phenomenon, that fund managers can no longer beat the market for more than a year or 2? That wasn't always the case. It's not that the fund managers suddenly all got bad at it at the same time; it's that these broad market index funds are carrying more risk than anyone cares to admit. More risk = higher returns, but when the market truly turns, its gonna be insane because whether you are selling SPY, VOO, or a retirement fund, you are selling the same shares as everyone else in the world.* *And 4th. The operational shorting. Watch Richard Evans on YouTube if you haven't, because he explains it really well. One of the reasons you have insane short interest and FTDs on ETFs is because AP's have learned to delay the purchase of shares. If there is some systemic event that creates a liquidity crunch in the underlying stocks, I could see the ETFs just straight up breaking.* [https://www.youtube.com/watch?v=ncq35zrFCAg&t=1s](https://www.youtube.com/watch?v=ncq35zrFCAg&t=1s) *It's terrifying and kind of mind-boggling if I'm being honest how we got to this point. It reminds me a lot of the MBS's that were being sold in mass leading up to 2008 - everyone keeps saying - "look, over time they always go up." Only its even worse because this time it's not just banks buying the bags of shit, it's basically everyone who has a retirement account. It's so strange to me how self-assured everyone is that the safest thing you can do is DCA into the SPY and never look back. They say things like "statistically this beats everything in the long run" - but if past results don't predict future returns why is this different? What makes everyone so damn confident?*

r/CryptoCurrencySee Comment

Lol simplifies. Doesn't really look that 'simple'. I'm not claiming to have some great understanding of how they work specifically either, just saying i straight up don't trust them, or the people who tout them as a guarantee. I'll copy out a comment that words it better than i could ever hope to. *There's 4 big problems that I see with ETF's and I fully believe they will be at the heart of some future financial crisis.* *The 1st is that everybody is in them. Literally, ask anyone you know what is in their retirement portfolio, and 99% of the time it's almost all put into one of two things: an index-tracking ETF like SPY, VOO, or VTI, or some target retirement date mutual fund. If it's the latter, ask them what's in the fund - they'll probably have no clue, but guess what; i can guarantee it overlaps HEAVILY with those same broad ETFs. Look at the Vanguard Target Retirement 2060 Fund, which is what a lot of millenials would probably be in; 54% of its holdings are just sitting in another fund, the "Vanguard Total Stock Market Index Fund Institutional Plus Shares." The end result of all this is that virtually every single person on the planet super heavily invested into the same set of shares; AAPL, MSFT, AMZN, GOOG, NVDA, TSLA, BRK.B...you get the idea.* *The second is that literally nobody gets how these things work. Even the financial advisors who tout them as a sure thing don't have a clue what the mechanics of these things are. Besides all the operational shorting, something that a lot of people don't seem to realize is that a lot of them have liquidity multipliers that are used as part of allocations. Basically, they are built specifically to have only the most liquid securities, so that they can trade in mass (which is important for issuers because the fees are so low). The result of this, again, is that they are less diverse than you think - the same highly liquid securities are among the top holdings in almost any ETF you find.* *The 3rd thing is, they keep being presented to investors as diverse and "safe", when that couldn't be further from the truth. If nearly every single investor has a huge chunk of their savings in the same top 20 stocks, how is that diverse? You know how there's this weird phenomenon, that fund managers can no longer beat the market for more than a year or 2? That wasn't always the case. It's not that the fund managers suddenly all got bad at it at the same time; it's that these broad market index funds are carrying more risk than anyone cares to admit. More risk = higher returns, but when the market truly turns, its gonna be insane because whether you are selling SPY, VOO, or a retirement fund, you are selling the same shares as everyone else in the world.* *And 4th. The operational shorting. Watch Richard Evans on YouTube if you haven't, because he explains it really well. One of the reasons you have insane short interest and FTDs on ETFs is because AP's have learned to delay the purchase of shares. If there is some systemic event that creates a liquidity crunch in the underlying stocks, I could see the ETFs just straight up breaking.* *It's terrifying and kind of mind-boggling if I'm being honest how we got to this point. It reminds me a lot of the MBS's that were being sold in mass leading up to 2008 - everyone keeps saying - "look, over time they always go up." Only its even worse because this time it's not just banks buying the bags of shit, it's basically everyone who has a retirement account. It's so strange to me how self-assured everyone is that the safest thing you can do is DCA into the SPY and never look back. They say things like "statistically this beats everything in the long run" - but if past results don't predict future returns why is this different? What makes everyone so damn confident?*

r/CryptoCurrencySee Comment

Because that wasn't a fault or flaw of ETF's, it was a fault of the ETF product (MBS). Here's how Bard simplifies how the ETF would work (Coinbase is the AP). An investor wants to buy shares of the BlackRock Bitcoin spot ETF. The investor places an order to buy shares on an exchange. The exchange sends the order to Coinbase, the authorized participant. Coinbase creates new ETF shares by buying Bitcoin on the open market. Coinbase deposits the Bitcoin into the ETF's trust. Coinbase delivers the new ETF shares to the investor. The opposite process happens when an investor wants to redeem shares of the ETF. An investor wants to redeem shares of the BlackRock Bitcoin spot ETF. The investor places an order to sell shares on an exchange. The exchange sends the order to Coinbase, the authorized participant. Coinbase sells the Bitcoin from the ETF's trust on the open market. Coinbase delivers the proceeds of the sale to the investor. Coinbase cancels the ETF shares. The ETF's NAV is calculated by dividing the total value of the Bitcoin in the trust by the number of ETF shares outstanding. As long as there is enough demand for the ETF, the APs will be willing to create and redeem ETF shares at the NAV, which will keep the ETF's price close to the price of Bitcoin on the open market.

Mentions:#MBS#AP
r/CryptoCurrencySee Comment

I don't trust ETF's. They remind me a lot of the MBS securities that everyone was touting back in 2008.. What makes everyone so damn confident in them?

Mentions:#MBS
r/CryptoCurrencySee Comment

MBS got that damn painting on his big ass boat... ridiculous.

Mentions:#MBS
r/CryptoCurrencySee Comment

This is directly relevant to XRPL because the derivatives markets themselves are illiquid and require central counterparties to operate. Central counterparties are commercial banks, aka government approved market makers. This is a problem because for example Lehman Bros was the largest private central counterparty for MBS prior to 2008'. They were also the most exposed to the fraud. The most common underlying assets for derivatives are stocks, bonds, commodities, currencies, interest rates, and market indexes. Contract values depend on changes in the prices of the underlying asset. Derivatives can be used to hedge a position, speculate on the directional movement of an underlying asset, or give leverage to holdings. These assets are commonly traded on exchanges or OTC and are purchased through brokerages. The Chicago Mercantile Exchange (CME) is among the world's largest derivatives exchanges. OTC-traded derivatives generally have a greater possibility of counterparty risk, which is the danger that one of the parties involved in the transaction might default. These contracts trade between two private parties, are unregulated, and facilitated by central counterparties.To hedge this risk, the investor could purchase a currency derivative to lock in a specific exchange rate. Derivatives that could be used to hedge this kind of risk include currency futures and currency swaps. Not all futures contracts are settled at expiration by delivering the underlying asset. If both parties in a futures contract are speculating investors or traders, it is unlikely that either of them would want to make arrangements for the delivery of a large number of barrels of crude oil. Speculators can end their obligation to purchase or deliver the underlying commodity by closing (unwinding) their contract before expiration with an offsetting contract. Many derivatives are, in fact, cash-settled, which means that the gain or loss in the trade is simply an accounting cash flow to the trader's brokerage account. Futures contracts that are cash-settled include many interest rate futures, stock index futures, and more unusual instruments such as volatility futures or weather futures This is directly relevant to the type of network and services Ripple has developed. They have a service that recreates all of the disparate types of exchange schemes into one platform that can create these markets and settle value without a central counter party. Tokenization of these assets being traded with the decentralized neutral bridge asset XRP that means you no longer need central counterparties makes this a big deal for financial services industry. Literally solves the biggest problem in banking and finance ATM, counter party risk.

Mentions:#MBS#XRP#ATM
r/CryptoCurrencySee Comment

Ripples service that utilizes XRP solves the largest problem in banking and finance. Central counterparty risk. This is the exact reason they were attacked by JPMorgan. The interbank settlements markets are facilitated by central counterparties in each market. Usually a handful and sometimes only one commercial entity creates a government approved market for whatever is being traded. I.e. the market maker. For example if you're in the market for the settlements of retail securities just like Robinhood then you would have to go to Citadel to be able to have the liquidity to settle the transactions. I think most people are aware of why this is bad at this point the AMC Wallstreetbets clusterfuck is well known. In every market there is a counter party and JPMORGAN is the largest private central counterpart for the settlement of international payments and their biggest client is Alibaba. Hmmm Or perhaps your familiar with Lehman Bros who was largest central counterparty for MBS in 08'. Side note former SEC Chairman Jay Clayton sold Lehman Bros just FYI JPM doesn't want a system like Ripplenet legal because now any small regional or even local bank can become a correspondence bank or investment bank because liquidity is on demand from an open market with no counter party risk I.e. no 3rd party in transactions in the interbank markets. Ripple has consolidated the entire interbank settlements market and all it's different trade schemes into a single platform. XRP has verticals in every interbank market not just Forex payments remittance.

r/BitcoinSee Comment

and the property owner is subsidized by money printing and MBS buying from the FED

Mentions:#MBS#FED
r/BitcoinSee Comment

And someone buys those MBS and CMBS. But instead they are treasuries. The finest catshit wrapped in dogshit

Mentions:#MBS
r/CryptoCurrencySee Comment

They invested in one of the safest investment vehicles available because they needed to put the deposits to work at the time they were received. They could’ve hedged against inflation/interest rate risk, and probably should’ve, but it’s hard to anticipate one of the most aggressive interest increases in history. Then - through no fault of their own - other regional banks that DID take significant risks begin to fail due to deposit flight. Fear spreads, other (well managed) banks fail, and the issue perpetuates. If no one pulled their deposits and the banks were allowed to ride the bonds to maturity, none of this would be a problem. People also read negative headlines about *share* price and think their *deposits* are at risk. This isn’t banks getting heavily over leveraged on MBS and CDOs gambles…

Mentions:#MBS
r/CryptoCurrencySee Comment

Probably. Issue is that there's less one concerted bubble in the US like MBS/banking and more every sector is bloated due to inflation and not enough corrections. It makes it very hard to track or predict what will happen. Likely an external factor (Chinese real estate, OPEC controls, Ukraine war, environmental like Pakistan's flooding a while back, more banks failing causing a run, BRICS influence) will start a cascade for the US economy over a lengthy period that spreads out to the world. The government has enough controls that it will progressively get worse but not pop over small domestic fears, at least probably not soon without a catalyst.

Mentions:#MBS
r/BitcoinSee Comment

Nobody knows. The FED was supposed to stop buying MBS in 2018 to prove that 2008 wasn't a massive fuckup. Instead they went nuclear with the money printers. Nothing is predictable these days.

Mentions:#MBS
r/CryptoCurrencySee Comment

Can we talk about the crack epidemic in the 70s/80s and who harmed minorities? 👀…..or 2008 and who condoned the criminal use of MBS’s and bailed out the greedy banks which wrecked peoples livelihood …the g O V t 🫠

Mentions:#MBS
r/CryptoCurrencySee Comment

Weekly Recap 1) 🇫🇷 $10 trillion asset manager BlackRock Paris headquarters taken over by protestors. 2) 🇲🇾 Malaysia Prime Minister says there's no reason to continue to depend on the US dollar. 3) 🇸🇦 Saudi Arabia's Crown Prince MBS says he is no longer interested in pleasing the US. 4) 🇺🇸 Former President Trump says "our currency is crashing and will soon no longer be the world standard." 5) #Bitcoin  whitepaper is hidden on every Apple MacBook computer running recent versions of macOS software. 6) 🇺🇸 US presidential candidate Robert F. Kennedy Jr. warns the Federal Reserve's 'FedNow' digital currency will result in financial slavery and political tyranny. 7) 🇺🇸 Bank of America, JPMorgan & other major banks subpoenaed over President Biden's family financial records. 8) 🇺🇸 Three US congressmen introduce 'Gold Standard Bill' to stabilize the US dollar's value. 9) Twitter updates its website logo to Dogecoin DOGE. 10) 🇨🇳 Chinese Yuan replaces US dollar becoming the most traded currency in Russia. 11) 🇨🇳 China to invest $39 billion in Malaysia. 12) 🇺🇸 US Treasury says decentralized crypto markets threaten national security. 13) 🇷🇺 Russia and India abandon Europe-dominated oil price, agree to use Dubai oil price benchmark. 14) Almost nobody paid taxes for crypto in 2022, Bloomberg reports. 15) 🇺🇸 Former President Trump says China will probably displace the US dollar as number one currency in the world. 16) 🇺🇸 FED official says Federal Reserve will need to raise interest rates above 5% and hold them there for a while. 17) 🇹🇭 Thailand opposition leader promises $300 crypto airdrop per citizen if elected Prime Minister in May. 18) 🇺🇸 Former President Trump's NFT sales have increased by 251% following his arrest. 19) 🇺🇸 Florida Governor Ron DeSantis says a Federal Reserve digital dollar threatens US financial freedom. 20) 🇺🇸 Arkansas passes bill to protect Bitcoin and crypto mining .

Mentions:#MBS#DOGE
r/CryptoCurrencySee Comment

US and the western allies kinda fucked up USD/SWIFT by weaponising it. US froze and took Afghan Central Bank money to try to repay 9/11 victims and now we have US and western allies freezing Russia assets/properties in hope to use that to fund rebuilding of Ukraine. Sure it's the moral right thing to do when Russia invaded Ukraine without any provocation, but the 2/3 of the world are not in line with US "moral value" Now Xi, MBS, Putin, Raisi know that their US denominated assets can be frozen anytime US decided to. So an alternate currency and payment system is welcome from their perspective to hedge against the risk of holding USD and China took the opportunity to increase RMB circulation

Mentions:#MBS
r/CryptoCurrencySee Comment

A couple crypto projects have registered with the SEC before. It's not wholly impossible. Maybe once some regulation is clearly laid out, an existing entity broker like Fidelity will start tokenizing their MBS. If 'the law is gray' is the reason not to do it, it just means we're early - not it can't or shouldn't be done. MBS doesn't grant you ownership to a house, either. Only ownership over the debt. Crypto is finance foremost so I think a scheme like this would be extremely efficient over typical broker-broker-broker trades.

Mentions:#MBS
r/CryptoCurrencySee Comment

Ripple's product ODL solves the biggest problem in international finance. Ripples product updates the infrastructure of the financial system. Ripplenet is essentially capable of doing exactly what a correspondence bank like JPM does for 10000x less overhead, it does payments with settlement instantly 3-4 sec, it shows you the quote before transfer and has no 3rd counter parties like traditional transfers. There are 9 main interbank markets with multiple players providing liquidity and playing 3rd party central counterparty for a fee as market maker. There are multiple convoluted protocol and market types in interbank markets. XRPL is connected to 98% of fiat/cash equivalent payout markets Ripple developed interoperability between "Request for quote" (RFQ), "central limit order books" (CLOBs), "anonymous streaming", and "match auctions" for interbank settlements so it can all be done seamlessly with no counter parties. Ripplenet is an on demand liquidity system for banks to borrow financing instantly. That's important because of what's happening right now with the banking system instability. Banks were encouraged by the FED after 08' collapse to hold long duration treasuries the FED printed to save systemically important banks, it devalued treasuries when they bought MBS and distressed assets this flooded the market with liquidity. It hoped those treasuries would be enough to keep the bank's balance sheets healthy. As long as they could hold till maturity. The collapse of Silicon valley Bank was because it's a regional bank that put a lot of money into long duration treasuries.most regional banks don't have the infrastructure for interest rate swaps to offset this. The FED hiked rates very fast because of the delay it has in data. This caused the SVB to have to sell treasuries to meet withdrawal demands, On top of a gloomy venture capital market it began selling 1.25% treasuries into a 5-7% environment. The market ate them alive. Had Silicon valley Bank been an ODL customer they could have used ODL to meet demand instantly. Now it seems Wallstreet is aware of about 100+ other banks in a similar position, now it's short the banks hunger games happening. The interbank settlements markets are $500-700 trillion a year because this number includes all the complex financial instruments /derivatives used by the banks to reduce counterparty risk. Ripplenet ODL has no counterparty risk. It levels the playing field between financial institutions with frictionless fiat transfer without counterparties. Exactly why they're being attacked by the bank cartel that has a monopoly on interbank settlements because they are the central counterparties.

Mentions:#MBS
r/CryptoCurrencySee Comment

I like this overall explanation of QE, but the increases in the reserves arent really inflationary and dont have a direct effect on consumer prices. The BTFP allows the Fed to accept collateral from banks in the form of MBS and UST at par value in exchange for liquidity and a 5% rate and repayment in a year The increase you see on the Fed’s balance sheet isnt policy-related as its actually the collateral theyve accepted for BTFP and will be returned to the banks next year All this being said opening swap lines is usually a sign of easing as other central banks will no doubt need that ez $

Mentions:#MBS
r/CryptoCurrencySee Comment

Their written statement confirms they are still reducing its holdings of MBS, Treasuries, and Agency debt at the same pace as previous announcements

Mentions:#MBS
r/CryptoCurrencySee Comment

well i didn't hear the fed mention anything about clearing about the balance sheet. like for example offloading some of those pesky MBS... no action at this point might as well be QE considering the state of the economy

Mentions:#MBS
r/BitcoinSee Comment

You are correct. We saw lies like this in 2008 when they kept saying MBS's were AAA credit yet the majority or mortgages were subprime. Same BS, just a different day.

Mentions:#MBS#AAA#BS
r/BitcoinSee Comment

What would happen if a bank invested in #Bitcoin  and hyperinflation/hyperbitcoinization were to occur? Would #Bitcoin  be considered a hedge bet for a bank? Would such a banker be seen an smart? Or a traitor? If bankers can buy nickel and MBS and rocks, can they buy #Bitcoin ?

Mentions:#MBS
r/BitcoinSee Comment

When the government can just pump more fiat out to satisfy demand, as more people withdraw, more is pumped into the system, thus the value of fiat will *decrease* during a bank run. The reason the value of the dollar increased during the bank runs of the great depression was because there was only a fixed quantity of dollars because of the gold standard. In 2008, the value of the dollar increased due to a rush to safe haven assets, but then sharply decreased once the fed implemented QE and bought MBS. Bitcoin has a fixed supply and a known minting rate, if there were to be a "run" on bitcoin, the value would increase. It's simple supply and demand.

Mentions:#MBS
r/CryptoCurrencySee Comment

They have every reason to blow it up and start new because their toxic balance sheet cannot be rescued from MBS & CMBS.

Mentions:#MBS
r/CryptoCurrencySee Comment

CDC going for that sweet MBS teat.

Mentions:#MBS
r/CryptoCurrencySee Comment

Right on man! Thanks for the discussion as well. >Can’t compare SVB to WF, JPM, BAC. SVP is a drop in the bucket compared to those 3. Oh I'm not, but alot of the banks are way over leveraged. >Will it take down a big bank? Nope. Full disclaimer, I work for one of them and the risk Culture definitely changed since 2008. Yes, I'm aware there are policies in place to try and mitigate risk. I just think it's going to be something else other than MBS this time. Most Americans have very little in savings and alot of debt. What happenes when they start losing their jobs due to the recession? We keep hearing unemployment is at all-time lows, the economy is great, ect. But it doesn't appear that way in the real world. History doesn't always repeat itself but often times it rhymes. >Either way, remind me in 6 months so I can apologize if I am wrong or bask in my 10 second glory debate win. Haha like wise!

Mentions:#BAC#MBS
r/BitcoinSee Comment

> By trading in their bonds and MBS. No money creation or incremental liquidity happened. At par value, so significantly above their market value. I’d say that this definitely counts as “incremental liquidity”. Yes it’s for a limited time and they get the loan at a rate of OIS + 2bps. It buys struggling banks some time, but it remains to be seen whether banks will be able to resolve their liquidity issues or if they’re going to need additional help.

Mentions:#MBS
r/BitcoinSee Comment

By trading in their bonds and MBS. No money creation or incremental liquidity happened. Banks trade in their bad bonds and MBS investments that could sink them if contagion (bank run) occurs for cash at par value. However it comes with a 4.5% interest rate. Historically speaking banks taking money from the discount window is embarrassing for them and not good for their business so they're incentivized to pay that back quickly. There's a lot of parallels here to 2019. QE is coming but it hasn't arrived. The Fed just bought themselves more runway.

Mentions:#MBS
r/BitcoinSee Comment

Let me explain, since Powell is mostly inept at his job, along with the rest of the banking cartel. The Fed has established a long-term goal of 2% inflation, as measured by the Personal Consumption Expenditures (PCE) price index. The target was officially adopted by the Fed in January 2012, replacing the previous informal target of 2% inflation or lower. These are the primary arguments by the FED, but I will also list the real reason, which is much easier to understand. **FEDs arguments for:** Avoiding deflation: Deflation, or a sustained decrease in the overall price level, can lead to a variety of economic problems. Consumers may delay purchases, anticipating lower prices in the future, which can lead to a decrease in demand and economic growth. Deflation also makes it harder for individuals and companies to repay debts, as the real value of the debt increases. In extreme cases, deflation can lead to a vicious cycle of decreasing demand, lower production, and further price decreases. By targeting a 2% inflation rate, the Fed aims to avoid deflation and its negative consequences. Promoting economic growth: Moderate inflation can stimulate economic growth by encouraging consumers and businesses to spend and invest. If prices are expected to rise, individuals may be more likely to make purchases now rather than waiting, while companies may be more likely to invest in new projects. Inflation also allows the Fed to lower nominal interest rates, which can make borrowing cheaper and promote economic activity. However, high inflation can be detrimental to economic growth by reducing the purchasing power of consumers and eroding confidence in the economy. Historical evidence: Empirical evidence suggests that a moderate level of inflation can be beneficial for the economy. For example, during the 1990s and 2000s, the United States experienced a period of relatively low and stable inflation, which coincided with a period of economic growth and prosperity. Similarly, during the 1970s and early 1980s, the United States experienced a period of high and volatile inflation, which was accompanied by slower economic growth and higher unemployment. The 2% inflation target represents a balance between promoting economic growth and avoiding the negative effects of high inflation. International standards: The 2% inflation target is also consistent with the inflation targets of other central banks around the world. For example, the European Central Bank and the Bank of Japan both have a target of 2% inflation, while the Bank of England has a target of 2% inflation with a tolerance range of +/- 1%. This consistency helps to promote stability and predictability in the global economy. **The real and only reason the FED targets this:** GDP growth. GDP, or gross domestic product, is a measure of the total value of goods and services produced in an economy. Inflation affects GDP growth in several ways: Inflation can stimulate demand: As noted earlier, moderate inflation can stimulate demand by encouraging consumers and businesses to spend and invest. This increased spending can lead to an increase in GDP. Inflation can lower real interest rates: The Fed can use monetary policy to control inflation by adjusting interest rates. Lower nominal interest rates can stimulate borrowing and investment, which can lead to increased economic activity and GDP growth. Inflation can also lower real interest rates (nominal interest rates adjusted for inflation) which can further stimulate borrowing and investment. Inflation can promote investment: Inflation can also promote investment in productive assets, such as real estate or equipment. If the value of these assets is expected to increase with inflation, investors may be more likely to invest in them, leading to increased economic activity and GDP growth. **So what is the FED doing?** Simply resetting the market. They crash the economy for the vast majority of Americans, drive up unemployment and reset the market. Then to re-stimulate the economy, they lower interest rates again, and participate in quantitative easing. The FED has been aggressively purchasing up MBS, and Treasury securities for the past year, so right now, the declining market has put them in a hole to the tune of 1.2T dollars on the FEDs balance sheet. For normal banks like Silicon Valley bank, their assets vs liabilities and free cash on hand to service customers caused a bank run and a collapse. But with the FED it's different, they get to print money out of nothing and inject it into the money supply with no real consequences to themselves because the only customers they have are other banks. If you look at how Silicon Valley bank actually ran itself, it's not too dissimilar to how the FED is operating. The historical evidence shows that to drop inflation by 2% correlates to a 3.5% increase in unemployment, and we are currently sitting at 6% inflation and 3.6% unemployment. So the FED wants to drop it by another 4%. To do that means that the unemployment rate has to increase by 7%, for a total unemployment of 10.6%. Once that happens, people will be losing their homes, cars, and not be in competition for those assets/liabilities for a long time. The reason they won't be in competition for those things for a long time is because those people will have massive damage to their credit, as we all saw in the last economic crash of 2008. Those people that went into default from losing their jobs, substantially tarnished credit, which in turn effected those individuals from being able to get home loans, vehicle loans etc. The net result is that this will cause a decrease in demand, because those people can't afford, nor get, credit to purchase. Asset values will decrease, not only from demand, but because of an increase in supply due to foreclosures. Then those assets get to be repurchased at a substantial discount, and they ride up the wave of inflation again as the FED injects money into the economy and lowers rates. The interest rates will slowly decline, as this will allow all the real estate assets to be refinanced at a lower rate, with increases in appreciation that lets real estate owners re-fi the debt, and pull imaginary equity out as real estate assets start to rebound in price. The cycle is really simple. Crash economy, drive up unemployment, remove purchasing power out of the market, which drives down demand because those people can't compete for those assets/resources. Once asset values have depreciated enough, last time it was between 20%-30% depending on the asset, and unemployment was 9.9% in 2009, they started acquiring again, and purchasing up distressed real estate. Then as the FED lowered rates to stimulate the economy again, and increase demand, prices for those assets started to increase, and then they could cash out refi to pull equity that had magically appeared due to the increase in demand from the lower rates, and lower the debt service on the commercial property. They do this every 12-24-36 or 48 months, just depends on the bank, how much equity they will let the owner pull (usually 70%-75% of the equity can be pulled). They ride this cycle in the inflationary market of steady decreasing rates, which lowers the debt service on the commercial asset, and the imaginary appreciating quality of the real estate asset as demand increases with the lowering of rates. Once they have done this multiple times, and the market hits a peak, they crash the economy again and start over. But when they start over, they have secured their real estate assets with usually historical lower debt service on their mortgages, and have built a cash-flowing portfolio that has little risk of default since most real estate portfolios are well diversified for the reset. So when it's time to start purchasing again, at the bottom of the next crash, they will have increased borrowing power against their already existing portfolio's, so they can scoop up more real estate assets this time than before.

Mentions:#MBS
r/CryptoCurrencySee Comment

Lol they got burned by duration mismatch on US treasuries and MBS bought during decades of low interest rate policy, rekt by JPow in 1 year of 500bs hikes. This is a policy failure because it is in no way isolated to the scapegoat tech banks that didn't get the fed liquidity infusion to keep them upright. [Tech/Trump didn't do this](https://content.fortune.com/wp-content/uploads/2023/03/BANKING-FINANCE-Unrealized-losses-at-U.S.-banks-graphic-from-FDICs-Gruenberg.png?w=1280&q=75).

Mentions:#MBS
r/CryptoCurrencySee Comment

The other Fed inflation-fighting policy tool is QT (quantitative tightening) where the long treasuries and MBSs that were bought during the easy money times are sold off or allowed to roll-off at maturity. Current policy caps treasury sales / roll-off at 95b per month. MBS balance is reduced by pass-through principal payments. Fed could accelerate QT by raising the 95b cap and start selling MBSs outright. This would raise long interest rates (including real estate mortgage interest rates).

Mentions:#MBS
r/CryptoCurrencySee Comment

The same guys who gave AAA ratings to MBS in 2008 and aided in the global financial meltdown

Mentions:#AAA#MBS
r/BitcoinSee Comment

And so the FED stepped in and basically said they'd absorb all of those losses as I understand it? Am I getting that right, that any bank can trade in their bonds or MBS products to the FED and the FED will give them the "at par" value, essentially absorbing their loss? Won't all banks cash in on that ASAP, basically giving a $600B print to the banks?

Mentions:#MBS
r/CryptoCurrencySee Comment

Guy was involved in crashing a bank with degen mortgage security gamble in Lehmans. Guess what SIVB crashed with? That’s right, mortgage securities. 43% of their assets was in MBS. The idiot thought ”this time it will work”.

Mentions:#MBS
r/BitcoinSee Comment

If you believe buying MBS is a "risky" behaviour for a bank...

Mentions:#MBS
r/CryptoCurrencySee Comment

Projection at its finest. Maybe get rid of MBS and CDOs and then you'll have less fuckery in the "regulated" space.

Mentions:#MBS
r/CryptoCurrencySee Comment

No, it has to do with the way Fed has raised interest rates. The MBS are fine. This isn't 2008.

Mentions:#MBS
r/CryptoCurrencySee Comment

Absolutely, note that a bank that has not been called out in this, Wells Fargo, is also facing issues with MBS. Just this weekend people started reporting issues with missing deposits and balances not showing correctly. Completely separate from crypto, be sure to have cash on hand and withdraw fiat, everyone.

Mentions:#MBS
r/CryptoCurrencySee Comment

Someone wants profit of course. Plus it’s a liquidity question - try to get 100 million dollar in cash in the first place. That is available in the form of swaps and bonds of course but as the actual delivered cash? No. It isn’t too bad if you do this via treasury notes and similar things. Really. Because that lifts the credit quality of the collateral at least somewhere near the credit quality of the US. Of course you could… try to come up with reasonable bounds on that. Like at least 90% of the collateral must be cash or cash-like notes. Which is what large banks need to fulfil and which is part of Basel II/III after 2009. You can thank the orange numbnut for letting smaller banks like SVB just run around and fuck their collateral strategy. This is what you get then. It’s again MBS, it’s again no risk management, it’s all the things again that were problems in 2008. Slightly different instruments around them but it’s the same issue. You can reinvent finance in crypto but the CONNECTION to classical fiat NEEDS to play first class with the financial regulatory frameworks. But you have tech bros that still play by the “move fast and break things” mantra doing that.

Mentions:#MBS
r/BitcoinSee Comment

So you're telling me all their deposit are back 1:1 with MBS or Govt debt? No fractional reserve?

Mentions:#MBS
r/BitcoinSee Comment

Yes, you were right on depositors being made whole. It is however creating new money that wouldn’t otherwise exist (equal to par minus actual bond value) which amounts to monetary inflation coming in the form loans at OIS (I believe) + 2bp. Inflation screws over those without debt financed assets, i.e., people with no assets aka the poorer part of the population. I wonder also what this does to bond pricing. MBS are also eligible for instance, and I wonder if BTFD has the potential of bonds becoming mispriced (fetching a higher price and so lower yield than they should). Also, the perverse incentive here is that firms learned that they don’t have to care about the stability of a bank they engage with. Firms only have to consider the terms offered — this in turn may incentivize banks to become more reckless in their offerings.

Mentions:#MBS
r/BitcoinSee Comment

They come from the MBS assets that the former bank holds. If the fed holds them to maturity they make back all the deposits and then some.

Mentions:#MBS
r/BitcoinSee Comment

SVB main business was making loans to startups. Even if they had MBS only, which makes zero sense btw, the housing market crash would make many loans none-performing and MBS would take a haircut.

Mentions:#MBS
r/BitcoinSee Comment

Most of the bonds SVG have are mortgage backed securities that will payoff until maturity. This isn't 2006 MBS are not junk and few people who are paying a 3% mortgage are going to refinance or sell.

Mentions:#MBS
r/CryptoCurrencySee Comment

Exchanges going bust has nothing to do with crypto’s value proposition, and BTC/ETH are not Ponzi schemes Banks loading up on treasuries and MBS at the top & the fed’s aggressive rate hikes to try and correct their monetary policy of the past decade+ led us here

Mentions:#BTC#ETH#MBS
r/CryptoCurrencySee Comment

MBS? They bought US TREASURIES. Literally the least risky investment on this earth. The fed doesn't know anything about good monetary policy and raised interest rates so high so quickly that almost every bank in the US right now would collapse from a bank run. This is a systemic issue because of the gov, not an isolated bank running wild 🤦‍♂️

Mentions:#MBS
r/CryptoCurrencySee Comment

Not MBS, long term treasuries from what I read. But yeah, your point remains. Heads of the bank were idiots.

Mentions:#MBS
r/CryptoCurrencySee Comment

So a bank decides to go all in on MBS’s in a riding interest rate env without any interest rate hedging? It’s the subs ignorance?

Mentions:#MBS
r/BitcoinSee Comment

Yes MBS are still generally very safe. We don’t have the same situation related to MBS that we did back in 2008 where almost all MBS were packaged repackaged junk loans. One thing we have done well at least since the housing market crash is so better at checking people trying to buy a house etc.

Mentions:#MBS
r/CryptoCurrencySee Comment

If Silicon Valley Bank DCA’d into BTC instead of 10 year 1% MBS, they wouldn’t have a liquidity crisis. For someone handling 80 billion dollars I think they can hire someone with two brain cells to hit “buy”

Mentions:#BTC#MBS
r/CryptoCurrencySee Comment

It is not the Fed’s job to handhold risk managers. Every company in the world, including every other bank, has had to deal with higher rates. You don’t see all of them going belly up. The fact of the matter is SVB had awful risk management. Taking short term deposits from startups who may need to withdraw at any moment and using them to purchase long dated treasuries and MBS at sub 2% rates is simply terrible terrible risk management.

Mentions:#MBS
r/CryptoCurrencySee Comment

> invested in ten year MBS that they can't liquidate without a significant loss. afaiu, they have 50%+ US government bonds. Both Bonds and MBS have resale/market values for cash, but even with good credit ratings for their securities, if they bought at 2%/3%, and current yields are 4%/5%, then, only if they sell for cash, they have to post a loss on that sale. They did not do anything risky, afaiu, but their liquidity is trapped by accounting appearances. > This is something the bank's risk analysts are supposed to care about. The black swan is that no... there is no actual risk of losses in bonds. There is risk from appearances caused by having to sell them when interest rates go up. Risk is not "lost profit opportunities". The black swan risk is "if major banks, and their US government puppets/masters, want to help crypto fail by not bailing out/investing fairly in SVB", then they can screw it over, along with tech/innovation industries, so that old money cronies can prevent disruption and maintain their role at the top of the subjugation chain.

Mentions:#MBS
r/CryptoCurrencySee Comment

Their entire job as a bank is to hedge themselves against exactly the kind of risk that caused this. Lots of other banks have long term investments but not like 80% of their balance sheet invested in ten year MBS that they can't liquidate without a significant loss. There may be a couple more banks that fail due to the same issue, but most large banks should be well insulated against this as "The fed raising interest rates" is an entirely predictable, entirely telegraphed occurrence. This isn't a black swan event. This is something the bank's risk analysts are supposed to care about.

Mentions:#MBS
r/CryptoCurrencySee Comment

SVB main failing was the overexposure to just ONE type of depositors. They should have gone to the Federal Reserve for help IMMEDIATELY. The fed should have been the lender of FIRST resort. Feds could have bought those trash commercial MBS off SVB's hands. Fed could also have bought the low yielding 10 year treausries for face value as well. SVB could have also created shares out of thin air and swaped them to the Fed for much neede reserves. The regional Fed was asleep and should have helped SVB.

Mentions:#ONE#MBS
r/CryptoCurrencySee Comment

SVB owned lots of Commerical real estate MBS. Covid destroyed commercial office rentals. Which meant SVB's assets were shit. Their only good assets were USA treasuries, yielding less than 2%. It was fine but they were forced to sell their safety net USA treasuries during the bank run. Which meant their tier 1 capital was gone. Which meant regulators HAD no choice but go and shut down SVB.

Mentions:#MBS
r/CryptoCurrencySee Comment

Just fyi, MBS as issued by governmental entities Fannie Mae or Freddie Mac are guaranteed by the US government, as much guaranteed as treasuries are guaranteed by the same government.

Mentions:#MBS
r/CryptoCurrencySee Comment

Why did Circle keep money in SVB after their MBS exposure was made public?

Mentions:#MBS