5 ms·

I've been studying the history of the settlement systems, and incidentally, this is a lesson learnt by each successive generation. https://news.ycombinator.com/

I've been studying the history of the settlement systems, and incidentally, this is a lesson learnt by each successive generation. https://news.ycombinator.com/item?id=25791646 https://news.ycombinator.com/item?id=25791646 A part of the reason why the Automated Clearing House system was setup was the collapse of Herstatt, which was a settlement failure that led to the global push for RTGSes. It is not that difficult to imagine another such storm. A heavily shorted stock, where retail traders "rally" to stick to the man and buy + hold on to the majority of the stock in circulation. And then the shares left in pools + the open market aren't enough to cover everyone's position. Creating a cascading failure.

petegordon 6y ago
That is interesting. Thanks. I’ve been looking at settlement also and am particularly interested in overnight Interest rates. https://en.m.wikipedia.org/wiki/Overnight_indexed_swap https://en.m.wikipedia.org/wiki/Overnight_indexed_swap This past years changes at the Fed for Central Bank Interest Rate Swap Lines and 9 new banks, which included Sweden and others. https://www.federalreserve.gov/newsevents/pressreleases/monetary20200729b.htm https://www.federalreserve.gov/newsevents/pressreleases/mone... The dollar is running the world right now. Lots of demand even as, or maybe why, the value has been weakening. https://www.marketwatch.com/investing/index/dxy https://www.marketwatch.com/investing/index/dxy Curious when the dollar running the world will begin to change. The US dollar and CN Yuan are the only countries keeping us with positive, basically zero, interest rates globally (See IMF SDR) https://www.imf.org/external/np/fin/data/sdr_ir.aspx https://www.imf.org/external/np/fin/data/sdr_ir.aspx Lastly, Power to the Players! Still looking for more short squeeze on the GME shorts, would like to see them get pushed down to a reasonable level of the float (5-20%?). I’m holding.

petegordon 6y ago

That is interesting. Thanks. I’ve been looking at settlement also and am particularly interested in overnight Interest rates. https://en.m.wikipedia.org/wiki/Overnight_indexed_swap https://en.m.wikipedia.org/wiki/Overnight_indexed_swap This past years changes at the Fed for Central Bank Interest Rate Swap Lines and 9 new banks, which included Sweden and others. https://www.federalreserve.gov/newsevents/pressreleases/monetary20200729b.htm https://www.federalreserve.gov/newsevents/pressreleases/mone... The dollar is running the world right now. Lots of demand even as, or maybe why, the value has been weakening. https://www.marketwatch.com/investing/index/dxy https://www.marketwatch.com/investing/index/dxy Curious when the dollar running the world will begin to change. The US dollar and CN Yuan are the only countries keeping us with positive, basically zero, interest rates globally (See IMF SDR) https://www.imf.org/external/np/fin/data/sdr_ir.aspx https://www.imf.org/external/np/fin/data/sdr_ir.aspx Lastly, Power to the Players! Still looking for more short squeeze on the GME shorts, would like to see them get pushed down to a reasonable level of the float (5-20%?). I’m holding.