MalO
Elite
- Joined
- Nov 15, 2022
- Messages
- 775
Some threads about what's going on:
^That last one is a doozy.
Basically the bank of international settlements (BIS) had warned the international community about this 80 trillion dollar debt in swaps that they are worred the banks might not be able to pay back.
The CFTC stopped reporting swaps back in January 2021 so we haven't really known how bad it was until the BIS just spoke up about it. Apparently it's been getting bad for some time, and especially so over the last 2 years.
A good portion of those swaps are held in pension funds.
More bad news. Apparently the Federal Reserve and FDIC want banks to start selling more bonds to retail traders. The reason? If a bank collapses, the Fed doesn't have to bail out the bond holder if someone bought a bond from the bank. The bond just goes *poof*. However if the bond is still held by the bank, then the Fed has to come up with the cash to bail out the bank and that bond is still on their records and has to be dealt with. Basically the Fed is conspiring with the banks to find bag holders.
Guess who also holds lots of bonds? Pension funds.
Now can you guess who is going to be the bag holder for the next collapse?
All I can tell you is this little retail trader isn't going to be touching swaps or bonds.
^That last one is a doozy.
Basically the bank of international settlements (BIS) had warned the international community about this 80 trillion dollar debt in swaps that they are worred the banks might not be able to pay back.
The CFTC stopped reporting swaps back in January 2021 so we haven't really known how bad it was until the BIS just spoke up about it. Apparently it's been getting bad for some time, and especially so over the last 2 years.
A good portion of those swaps are held in pension funds.
More bad news. Apparently the Federal Reserve and FDIC want banks to start selling more bonds to retail traders. The reason? If a bank collapses, the Fed doesn't have to bail out the bond holder if someone bought a bond from the bank. The bond just goes *poof*. However if the bond is still held by the bank, then the Fed has to come up with the cash to bail out the bank and that bond is still on their records and has to be dealt with. Basically the Fed is conspiring with the banks to find bag holders.
Guess who also holds lots of bonds? Pension funds.
Now can you guess who is going to be the bag holder for the next collapse?
All I can tell you is this little retail trader isn't going to be touching swaps or bonds.