Globally, liquidity recedes as six major central banks' combined balance sheet shrinks to 35% of global GDP, up from the pre-pandemic 25%.
Source: Fidelity
33 sats \ 1 reply \ @HardRich 16 Nov 2023
I don't understand the graph - could you help me? It seems like assets as a % of GDP is going up - I take it that's a bad thing, but I don't understand how? Does it mean that banks are hording assets because they think something bad is coming? In a healthy economy do banks have way lower amounts of assets as a % of GDP?
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20 sats \ 0 replies \ @TomK OP 16 Nov 2023
The first two that are highly correlated show that the market cap of global stocks (MSCI) is more or less a function of the cumulated central bank balance sheets (bs it is called I guess). Below it shows the for QE adjusted change of real rates of the Fed Fund Rate that since the GFC never went positive. Comm banks in this model are part of the cumulated MSCI.
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33 sats \ 1 reply \ @fm 16 Nov 2023
we are so fucked
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21 sats \ 0 replies \ @TomK OP 16 Nov 2023
Oh yes. We are sleepwalking into a desaster
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20 sats \ 1 reply \ @BlokchainB 16 Nov 2023
The soft landing is going to work right?
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50 sats \ 0 replies \ @TomK OP 16 Nov 2023
The MSM is pretty clear about that. So... yes, of course
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20 sats \ 0 replies \ @TomK OP 16 Nov 2023
Just to put some hopium on the table. As long as they are drying off the RRP we are fine.
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0 sats \ 0 replies \ @BitcoinIsTheFuture 17 Nov 2023
They’ll continue to manipulate as long as they can. Redefining a recession, making up a soft landing, more bank failures, remember the banks are all still insolvent. Nothing changed since the beginning of the year. These banks that failed were bigger than in 08
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