Who the hell is Blackrock ?

Discussion in 'Stock Market' started by Angelo, Oct 14, 2019.

  1. Toddsterpatriot
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    Toddsterpatriot Diamond Member

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    Why are banks no longer lending to each other? Are they afraid that collapse is imminent somewhere in the system, as with the Lehman collapse in 2008?

    No. They have new liquidity requirements.
    They have to hold a lot more cash than they used to.
    That's why, despite trillions in excess reserves, the overnight repo market dried up.

    The Fed’s stated objective in boosting the liquidity available to financial markets was simply to maintain its “target rate” for the interest charged by banks to each other in the Fed funds market.

    When the overnight rate moves above or below the target rate, the Fed intervenes.
    It's what the Fed does. What they've always done.

    Why were private capital markets once again in need of public support if there was no financial crisis in sight?

    They don't need support, they need liquidity, to maintain the target rate.

    Is the Run on the Dollar Due to Panic or Greed?

    As a "banking expert", Ellen is one hell of a lawyer...err...nutrition author...err...LOL!

    What the Fed was doing instead, it said, was reviving its “standing repo facility”—the facility it had used before September 2008,

    See? Not unprecedented.
     
  2. Toddsterpatriot
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    Toddsterpatriot Diamond Member

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    Quick, give them more money...….climate change!!!
     
  3. Angelo
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    Angelo Gold Member

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    One of the ones that pulls Schiff's strings for sure.
    Laurence D. Fink - Wikipedia
     
  4. Picaro
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    Picaro Gold Member

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    Why would banks make loans to each other when they can just borrow from the Fed at less than zero real interest rates??? Some people really don't know basic things about business.
     
  5. Picaro
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    Picaro Gold Member

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    Re Blackrock, it's small potatoes.

    State Street Corporation - Wikipedia


    State Street Corporation is an American[3] financial services and bank holding company headquartered at One Lincoln Street in Boston with operations worldwide. It is the second United States bank on the list of oldest banks in continuous operation; its predecessor, Union Bank, was founded in 1792. State Street is ranked 15th on the list of largest banks in the United States by assets. It is one of the largest asset management companies in the world with US$2.511 trillion under management and US$31.62 trillion under custody and administration. It is the second largest custodian bank in the world.[4]


    Get that? It's only 15th ... and only 247th on the Fortune 500 ...

    Concentration of wealth and money in this country is massive.
     
  6. Toddsterpatriot
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    Toddsterpatriot Diamond Member

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    Why would banks make loans to each other

    Because the repo rate is usually below the rate at the discount window.
    And, just like in the old days, discount window borrowing makes regulators
    wonder what you're doing wrong.

    Some people really don't know basic things about business.

    Irony.
     
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  7. Picaro
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    Picaro Gold Member

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    We all already know what they're 'doing wrong', they're leveraging assets same as they always do, at high ratios, and that's why the eventually have to be bailed out, since in that market there aren't a lot a players and the funds can dry up almost immediately if even one of the big players suddenly refuses and withdraws from that market, which in turn will set off a mark to market panic on the leveraged assets, whether those assets be real estate or pine cones. So, your 'repo market' isn't nearly as big as it used to be, which is why the Fed is stepping in, to subsidize your heroes with less than zero interest rates; they get better terms in bankruptcy and panics from the Feds, i.e. taxpayers eating the debts, than they can suing each other.
     
  8. Toddsterpatriot
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    Toddsterpatriot Diamond Member

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    We all already know what they're 'doing wrong', they're leveraging assets same as they always do, at high ratios,

    Much, much, much better capitalized than in 2008. A lot less leverage.

    since in that market there aren't a lot a players and the funds can dry up almost immediately if even one of the big players suddenly refuses and withdraws from that market,

    Which market? Be specific.

    So, your 'repo market' isn't nearly as big as it used to be,

    How big did you think the repo market was in 2008? 2007? 2006?

    which is why the Fed is stepping in, to subsidize your heroes with less than zero interest rates;

    Repo rates aren't close to zero.
     
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