Recent comments in /f/wallstreetbets

SeemoarAlpha t1_jdg644c wrote

Reply to comment by mytendies in Fed Balance Sheet by Mega-Lithium

Well that's the source of volatility isn't it? Some people get it, some don't, and they fight it out in the markets. The spectrum of "smart money" still follows the Gaussian distribution curve. Quiescent markets then converge on the reversion to the mean. Along the way, volatility is the mother's milk of the quant arbs, quietly vacuuming up the nickels and dimes of the frenetic who won't miss them.

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DYTTIGAF t1_jdg0yjw wrote

Reply to comment by Wander21 in Fed Balance Sheet by Mega-Lithium

Currency was created and inserted into the economy nonetheless. What happens when banks "do what they're supposed to do" which is lend it out and leverage that pile of capital 10X or more?

They have 0% reserve requirements since those restrictions were lifted during COVID.

It's not this particular instance but the steady stream of customers (Signature, First Republic, etc.). Who's next U.S. Bancorp, or Comerica?

The solution is accountability. Fraud and loss cannot constantly be subsidized. It's the moral hazard. Banks saying: "Fuck it. Let's be stupid. The Fed will make us whole".

There's no discipline. Every skinned knee get to go to the emergency room paid for by a third party.

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