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Except there won’t be money available when they ask for it. When the dollar collapses after the Fed cuts rates, the interest rate will rise very high. The gover

Except there won’t be money available when they ask for it. When the dollar collapses after the Fed cuts rates, the interest rate will rise very high. The government will be forced to cut spending, and there will be no bailouts this time.

zukzuk 7y ago
zerohedge.com is leaking again
- allovernow 7y ago
  Zerhoedge has also been a month ahead of the media with respect to coronavirus reports. The fact that ZH speculates about conspiracies does not mean that everything on their site is BS.
  - bdcravens 7y ago
    Even a broken clock is right twice a day.
    - SirYandi 7y ago
      Yet useless for telling the time
      - hk__2 7y ago
        That’s precisely the point.
    - allovernow 7y ago
      They've been posting summaries of published literature out of China in real time.
    - dehrmann 7y ago
      And a clock three seconds fast is never right.
  - hilbertseries 7y ago
    If you doomsay about everything that could possibly cause a crisis, you may eventually be right about one of them causing a crisis. Does it make their articles in 2018 about how the economy has about to collapse more accurate?
    - allovernow 7y ago
      Summarizing published literature out of China with estimates for R0 and CFR is not doomsdaying. CNN and Fox also misrepresent news regularly - that doesn't mean they have nothing useful to report.
  - seppin 7y ago
    > The fact that ZH speculates about conspiracies does not mean that everything on their site is BS. It's exactly that reason why they are a useless source for information.
- refurb 7y ago
  Indeed. Anyone who follows zerohedge has probably noticed that the economy was on the brink of collapse every single week of the past decade. I do follow zerohedge since they often report on things others won't, but I take their analysis with a grain of salt.
- humaniania 7y ago
  That site is so cynical and toxic. I regret giving it any significant amount of time. WallStBets reminds me a lot of it. Lots of manipulative content.
mathattack 7y ago
Right now rates are very low.
bdcravens 7y ago
The article is about rules in Europe.
cinquemb 7y ago
>When the dollar collapses after the Fed cuts rates, the interest rate will rise very high. As long as the dollar denominated debt outstanding continues to dwarf the amount of dollars in circulation (claims on future dollars far exceeds the amount of dollars that exist), I don't see the dollar collapsing. Interest rates can also rise due to credit risk. Fake interest rates set by FRBNY cant fix credit risk, they cant make corporations/goverments with severely stressed/ no cash-flow solvent. > The government will be forced to cut spending This is the usually the opposite that happens during credit busts, they increase deficits. If you doubt a governments ability to generate cashflow, then one should worry. > and there will be no bailouts this time. For whom? Some banks merely have to go to the discount window and keep rolling over their loan with any illiquid asset they have as collateral with FRBNY, JPM is doing this now[0]. A few other banks[1] can go to the FRBNY repo market for either a daily/term bailout with their rehypothicated UST/MBS collateral at fake interest rates. I'd be more worried about the corporates (and the assets they may be holding that will have to get liquidated) who were engaging in bank like activities without the access to these facilities. [0] https://www.bloomberg.com/news/articles/2020-02-25/jpmorgan-eyes-plan-to-tap-fed-s-discount-window-to-break-stigma https://www.bloomberg.com/news/articles/2020-02-25/jpmorgan-... [1] https://www.newyorkfed.org/markets/primarydealers https://www.newyorkfed.org/markets/primarydealers
- onlyrealcuzzo 7y ago
  What corporations are engaging in bank-like activities without access to the mentioned facilities??
  - cinquemb 7y ago
    Anyone you can think of that's not on this list: https://www.ffiec.gov/npw/StaticData/Y15SnapShot/20181231_20190723_FRY15%20Snapshot%20Indicators.csv https://www.ffiec.gov/npw/StaticData/Y15SnapShot/20181231_20...

zukzuk 7y ago

zerohedge.com is leaking again

allovernow 7y ago
Zerhoedge has also been a month ahead of the media with respect to coronavirus reports. The fact that ZH speculates about conspiracies does not mean that everything on their site is BS.
- bdcravens 7y ago
  Even a broken clock is right twice a day.
  - SirYandi 7y ago
    Yet useless for telling the time
    - hk__2 7y ago
      That’s precisely the point.
  - allovernow 7y ago
    They've been posting summaries of published literature out of China in real time.
  - dehrmann 7y ago
    And a clock three seconds fast is never right.
- hilbertseries 7y ago
  If you doomsay about everything that could possibly cause a crisis, you may eventually be right about one of them causing a crisis. Does it make their articles in 2018 about how the economy has about to collapse more accurate?
  - allovernow 7y ago
    Summarizing published literature out of China with estimates for R0 and CFR is not doomsdaying. CNN and Fox also misrepresent news regularly - that doesn't mean they have nothing useful to report.
- seppin 7y ago
  > The fact that ZH speculates about conspiracies does not mean that everything on their site is BS. It's exactly that reason why they are a useless source for information.
refurb 7y ago
Indeed. Anyone who follows zerohedge has probably noticed that the economy was on the brink of collapse every single week of the past decade. I do follow zerohedge since they often report on things others won't, but I take their analysis with a grain of salt.
humaniania 7y ago
That site is so cynical and toxic. I regret giving it any significant amount of time. WallStBets reminds me a lot of it. Lots of manipulative content.

mathattack 7y ago

Right now rates are very low.

bdcravens 7y ago

The article is about rules in Europe.

cinquemb 7y ago

>When the dollar collapses after the Fed cuts rates, the interest rate will rise very high. As long as the dollar denominated debt outstanding continues to dwarf the amount of dollars in circulation (claims on future dollars far exceeds the amount of dollars that exist), I don't see the dollar collapsing. Interest rates can also rise due to credit risk. Fake interest rates set by FRBNY cant fix credit risk, they cant make corporations/goverments with severely stressed/ no cash-flow solvent. > The government will be forced to cut spending This is the usually the opposite that happens during credit busts, they increase deficits. If you doubt a governments ability to generate cashflow, then one should worry. > and there will be no bailouts this time. For whom? Some banks merely have to go to the discount window and keep rolling over their loan with any illiquid asset they have as collateral with FRBNY, JPM is doing this now[0]. A few other banks[1] can go to the FRBNY repo market for either a daily/term bailout with their rehypothicated UST/MBS collateral at fake interest rates. I'd be more worried about the corporates (and the assets they may be holding that will have to get liquidated) who were engaging in bank like activities without the access to these facilities. [0] https://www.bloomberg.com/news/articles/2020-02-25/jpmorgan-eyes-plan-to-tap-fed-s-discount-window-to-break-stigma https://www.bloomberg.com/news/articles/2020-02-25/jpmorgan-... [1] https://www.newyorkfed.org/markets/primarydealers https://www.newyorkfed.org/markets/primarydealers

onlyrealcuzzo 7y ago
What corporations are engaging in bank-like activities without access to the mentioned facilities??
- cinquemb 7y ago
  Anyone you can think of that's not on this list: https://www.ffiec.gov/npw/StaticData/Y15SnapShot/20181231_20190723_FRY15%20Snapshot%20Indicators.csv https://www.ffiec.gov/npw/StaticData/Y15SnapShot/20181231_20...