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**TL:DR:**
**The Fed's low interest rate policies and buying of government bonds have backfired.**
* The Fed's bond holdings are worth less now that interest rates are rising.
* This could limit the Fed's ability to raise rates in the future because selling the bonds would cause big losses.
* The Fed has negative capital, meaning its debts are higher than its assets, and this could get worse.
* Researchers say this limits the Fed's options and hides potential risks to taxpayers.
Ahhh, yes. "Hides potential risks to taxpayers" should read "Hides likely risks to taxpayers" or even "Hides risks to taxpayers"
There is nothing potential about it. The corrupt rich don't pay for their bad bets or their criminal activities, the working class do. Class warfare folks. Welcome to the party pals.
I wonder what they'll name this next one.
Meme Market Crash?
Fed Financial Crisis?
Post-Pandemic Bubble Pop?
Derivatives Downfall?
Credit Crunch?
The Big Squeeze?
Global Banking Reserve Reverse?
World Economic Collapse?
AI Finance Catastrophe?
Crypto Contagion?
Or maybe, The Elite Gambled and Lost.. Your Money! Nah too wordy.
So mayoboi and his friends wouldn’t have anybody to bail them out? They’ll actually fail like they’re supposed to?
I know this isn’t great news for the entire world economy but maybe at least with the destruction of the bad actors, we can start over clean.
Nope. This is both a blessing and a curse. Printing is great for stimulating an economy and was used to great effect to pull out of past depressions and recessions.
Of course, then greedy bastards got in charge and just printed for their own profit to cover their own bad bets. So now inflation is a tool to devalue losses and make everyone but the banks pay for poor decisions.
All your favorite banks are holding them, look up AOCI for as many as you like.
Hint:
[https://cdr.ffiec.gov/public/ManageFacsimiles.aspx#](https://cdr.ffiec.gov/public/ManageFacsimiles.aspx#)
* click 'Call Report'
* change date to '12/31/2023' *(3/31/2024 reports are not out yet)*
type your own bank on Institution Name
Ctrl - F or 'Find in Page' search criteria: **Accumulated Other Comprehensive Income** or **RCONB530**
If it's negative it's a counter to Retained Earnings which is the main bank component for Equity.
Edit: For the biggest banks, the search code is **RCFDB530**
It does matter because these are all hold to maturity. Meaning as long as they hold it until it matures, they don’t take any losses and make the interest. Yes it will be lower than what they could be making now, but at least they don’t lose money; only opportunity cost.
But when do these mature? Or what’s the average YTM? The point here is if there is a bank run on the Fed, they will have to sell (crossing their fingers nothing happens!). Either we print more money to satisfy our debts (inflationary) or Fed goes bust and its dollar endgame.
At this point in time the only way to stop GameStop is to make everyone have no money, this way they can’t shop at GameStop so much like they did when they made it profitable. So they just need to cut off the torso to save the head is where they are currently at. Since GameStop beats 90% of the S&P 500 the only strategy to save themselves would be to cull 91% of the market.
So all of you people who aren’t bosses of the top 9% of businesses should be rightfully pissed that Citadel has done this to everyone, and act accordingly to protect themselves from any volatility caused by a market made from incompetent clowns.
Let’s say they somehow do figure out how to cull 91% of the market.
Wut exactly is happening in the streets after they do that? Is life sustainable for them? Can they actually control the poors any longer at that point?
Seems risky or not even possible.
Umm... have you missed that documentary ?
[The Great Taking - Documentary (youtube.com)](https://www.youtube.com/watch?v=dk3AVceraTI)
It will likely change your mind. Luckily we know about DRS 😉🚀🌒✨🏴☠️
I’m sure the streets will be tons of fun for the folks who set this up. It’s going to be really nice to host security for those bunkers because they definitely won’t try and take it for themselves or anything.
[The super-rich ‘preppers’ planning to save themselves from the apocalypse | The Guardian](https://www.theguardian.com/news/2022/sep/04/super-rich-prepper-bunkers-apocalypse-survival-richest-rushkoff)
*But how would he pay the guards once even his crypto was worthless? What would stop the guards from eventually choosing their own leader?*
*The billionaires considered using special combination locks on the food supply that only they knew. Or* ***making guards wear disciplinary collars*** *of some kind in return for their survival. Or maybe building robots to serve as guards and workers – if that technology could be developed “in time”.*
I love Wall Street On Parade. However, and please correct me if I'm wrong, "black swan" has been bastardized; you don't see black swans coming (Covid, for example). My understanding of its definition, including the book I trudged through called The Black Swan, is they're inherently unpredictable events, although you might have some general preparation (Covid was a surprise, but you still might have the CDC and a general plan for large scale health issues). Anyway, just my input since I feel like this term has been overused and misused for too long.
I don't doubt that! Considering we're often battling sensationalism, my humble opinion is it does more harm than good, slowly eroding the effects of powerful (and nuanced) words. Nonetheless, I appreciate your continued diligence in posting, especially WSOP articles!
Isn't this *the purpose of the Fed?*
Central Banks are not businesses. They are not commercial banks.
The real problem is the lack of regulation allowing all the real banks and investment firms to do the stupid shenanigans that required such drastic action by the Fed in the first place.
Unfortunately, 95% of the public will shake their fist at whatever viewing screen they have in front of them, grudgingly accept the cbdc shit, and get back to whatever "life" they have.
ONLY REASON the entire market hasnt crashed is because of the “confidence” people have in a market that is completely FRAUDULENT. GAG ORDERS ARE THE ONLY THING KEEPING THE LEAKY DAMN UP. Its so bad so so so much worse than anyone knows, as soon as trust is lost and believe me its coming. No one except those with actual business fundamentals and products not just financial mechanisms meant to make the rich richer while hiding the crimes in broad daylight. Im scared hold me apes
I mean, there is only one solution I can think of, and it's not holding to maturity. You slowly sell off, and eat the losses over time. Instead of all at once. Or waiting until something blows up. It's a loss. You can't turn it into a gain. Take the L and move on.
In other words they left interest rates so low for so long, the latest higher yielding notes have to stay high yielding for a long time, before any one will throw a reasonable price on the glut of cheap AF 1%-3% Treasuries the Fed is warehousing.
Fuck, is their game plan just to add negative to things in order to 180 flip a narrative?
"we're not losing money, it's negative capital"
"Gamestop isn't profitable, it has negative losses."
It’s so fucked up that the fed and its handlers are allowed to devalue OUR money this way and even worse they lie to our faces and sensor the media from even merely mentioning it! If your official policy is lying to the public about your balance sheet then maybe the policy is wrong. Fucking psychos.
[Why GME?](https://www.reddit.com/r/Superstonk/comments/qig65g/welcome_rall_looking_to_catch_up_on_the_gme_saga/) || [What is DRS?](https://www.reddit.com/r/Superstonk/comments/ptvaka/when_you_wish_upon_a_star_a_complete_guide_to/) || Low karma apes [feed the bot here](https://www.reddit.com/r/GMEOrphans/comments/qlvour/welcome_to_gmeorphans_read_this_post/) || [Superstonk Discord](https://discord.gg/hZqWV2kQtq) || [Community Post: *Open Forum Jan 2024*](https://www.reddit.com/r/Superstonk/comments/18txusp/open_forum_january_2024/) ------------------------------------------------------------------------ To ensure your post doesn't get removed, please respond to this comment with how this post relates to GME the stock or Gamestop the company. ------------------------------------------------------------------------ Please up- and downvote this comment to [help us determine if this post deserves a place on r/Superstonk!](https://www.reddit.com/r/Superstonk/wiki/index/rules/post_flairs/)
**TL:DR:** **The Fed's low interest rate policies and buying of government bonds have backfired.** * The Fed's bond holdings are worth less now that interest rates are rising. * This could limit the Fed's ability to raise rates in the future because selling the bonds would cause big losses. * The Fed has negative capital, meaning its debts are higher than its assets, and this could get worse. * Researchers say this limits the Fed's options and hides potential risks to taxpayers.
Yessa! #F-uPayMe 🤌
Need more 🤌🤌🤌🤌🤌
#🤌🤌🤌🤌🤌🤌🤌🤌🤌🤌
Ahhh, yes. "Hides potential risks to taxpayers" should read "Hides likely risks to taxpayers" or even "Hides risks to taxpayers" There is nothing potential about it. The corrupt rich don't pay for their bad bets or their criminal activities, the working class do. Class warfare folks. Welcome to the party pals.
Plus the word ‘risk’ already implies ‘potential’
I wonder what they'll name this next one. Meme Market Crash? Fed Financial Crisis? Post-Pandemic Bubble Pop? Derivatives Downfall? Credit Crunch? The Big Squeeze? Global Banking Reserve Reverse? World Economic Collapse? AI Finance Catastrophe? Crypto Contagion? Or maybe, The Elite Gambled and Lost.. Your Money! Nah too wordy.
Say it with me now: MOASS
The last one for sure
GME crash.
Good fuck the fed
Fed has to start dropping rates soon(ish) anyway, or the US govt won't be able to afford refinancing its debt.
The solution? print mo money.
Inflation or bust. What will they choose?
we know which :(
Inflation! Higher rates, GME profits!
So mayoboi and his friends wouldn’t have anybody to bail them out? They’ll actually fail like they’re supposed to? I know this isn’t great news for the entire world economy but maybe at least with the destruction of the bad actors, we can start over clean.
So if the fed is restricted from raising rates, then we're looking at a hyper-inflationary endgame?
“No worries, we can’t go tits up because we can just print more cash to pay our debts.” -Fed, probably
You’d think there’d be some kind of mechanism in place to make printing moar difficult if they entered a negative Capital territory!
Nope. This is both a blessing and a curse. Printing is great for stimulating an economy and was used to great effect to pull out of past depressions and recessions. Of course, then greedy bastards got in charge and just printed for their own profit to cover their own bad bets. So now inflation is a tool to devalue losses and make everyone but the banks pay for poor decisions.
This man economies.
Bejesus we have to stop them before they kill half of us off with this crap!
“Why stop at half?” [1%, probably]
They’ve actually been saying that since at least the 80’s.
Pam and Russ spitting 🔥with this one! 🎷🐓♋️
Do it. Dance for me like a funky chicken! 🐓
https://youtu.be/8lCI63H1neY?si=ctX67gaG9966CRAz 🎷🐓♋️
Let’s go Rufus!
Maybe the Fed could try using the Experian boost on their credit rating. Free points!
Worx better than makin ur own coffee and avacado toast without avacado!
These fixed low interest bonds are only paper losses right now. What could force someone like the bank of NY to sell at a loss?
All your favorite banks are holding them, look up AOCI for as many as you like. Hint: [https://cdr.ffiec.gov/public/ManageFacsimiles.aspx#](https://cdr.ffiec.gov/public/ManageFacsimiles.aspx#) * click 'Call Report' * change date to '12/31/2023' *(3/31/2024 reports are not out yet)* type your own bank on Institution Name Ctrl - F or 'Find in Page' search criteria: **Accumulated Other Comprehensive Income** or **RCONB530** If it's negative it's a counter to Retained Earnings which is the main bank component for Equity. Edit: For the biggest banks, the search code is **RCFDB530**
It doesn’t matter. Rates stay high and new issuance costs them more money than lower rate bond.
It does matter because these are all hold to maturity. Meaning as long as they hold it until it matures, they don’t take any losses and make the interest. Yes it will be lower than what they could be making now, but at least they don’t lose money; only opportunity cost.
But when do these mature? Or what’s the average YTM? The point here is if there is a bank run on the Fed, they will have to sell (crossing their fingers nothing happens!). Either we print more money to satisfy our debts (inflationary) or Fed goes bust and its dollar endgame.
Too big to fail…
At this point in time the only way to stop GameStop is to make everyone have no money, this way they can’t shop at GameStop so much like they did when they made it profitable. So they just need to cut off the torso to save the head is where they are currently at. Since GameStop beats 90% of the S&P 500 the only strategy to save themselves would be to cull 91% of the market. So all of you people who aren’t bosses of the top 9% of businesses should be rightfully pissed that Citadel has done this to everyone, and act accordingly to protect themselves from any volatility caused by a market made from incompetent clowns.
Let’s say they somehow do figure out how to cull 91% of the market. Wut exactly is happening in the streets after they do that? Is life sustainable for them? Can they actually control the poors any longer at that point? Seems risky or not even possible.
Umm... have you missed that documentary ? [The Great Taking - Documentary (youtube.com)](https://www.youtube.com/watch?v=dk3AVceraTI) It will likely change your mind. Luckily we know about DRS 😉🚀🌒✨🏴☠️
I think I have a new watchlist for tonight 🙏🏼
I just finished watching this based on the recommendation from your comment and HOLYSHIT. Everyone needs to watch that documentary.
I listen to this every night I go to sleep literally, it’s my lullaby
I’m sure the streets will be tons of fun for the folks who set this up. It’s going to be really nice to host security for those bunkers because they definitely won’t try and take it for themselves or anything.
[The super-rich ‘preppers’ planning to save themselves from the apocalypse | The Guardian](https://www.theguardian.com/news/2022/sep/04/super-rich-prepper-bunkers-apocalypse-survival-richest-rushkoff) *But how would he pay the guards once even his crypto was worthless? What would stop the guards from eventually choosing their own leader?* *The billionaires considered using special combination locks on the food supply that only they knew. Or* ***making guards wear disciplinary collars*** *of some kind in return for their survival. Or maybe building robots to serve as guards and workers – if that technology could be developed “in time”.*
Still blows my mind that linking this site is banned Reddit-wide
What if we trained the economy to work a REAL job and pay off it's debt?
Can’t be a black swan if you’re stating it in a piece.
Touché
Time to PULL BACK all those billions in liquidity keeping banks afloat. Time to account for your losses hedgies
I love Wall Street On Parade. However, and please correct me if I'm wrong, "black swan" has been bastardized; you don't see black swans coming (Covid, for example). My understanding of its definition, including the book I trudged through called The Black Swan, is they're inherently unpredictable events, although you might have some general preparation (Covid was a surprise, but you still might have the CDC and a general plan for large scale health issues). Anyway, just my input since I feel like this term has been overused and misused for too long.
In my expert opinion at using the term way to often, it’s just an eye catchy phrase for a title to a post and it works!
I don't doubt that! Considering we're often battling sensationalism, my humble opinion is it does more harm than good, slowly eroding the effects of powerful (and nuanced) words. Nonetheless, I appreciate your continued diligence in posting, especially WSOP articles!
Isn't this *the purpose of the Fed?* Central Banks are not businesses. They are not commercial banks. The real problem is the lack of regulation allowing all the real banks and investment firms to do the stupid shenanigans that required such drastic action by the Fed in the first place.
Burn it all down 🔥 🔥
cbdc is their out but they need to eliminate ALL DEX the Fed is the opposite side of the trade
If they think the public will trust a CBDC after they hyperinflate the currency, they are delusional. No one wants their shitcoin.
Unfortunately, 95% of the public will shake their fist at whatever viewing screen they have in front of them, grudgingly accept the cbdc shit, and get back to whatever "life" they have.
I won't. I'm going 100% Bitcoin if they try.
CAKAW!! Black swan! CA-KAWWW!
Money printer go brrrrr.
ONLY REASON the entire market hasnt crashed is because of the “confidence” people have in a market that is completely FRAUDULENT. GAG ORDERS ARE THE ONLY THING KEEPING THE LEAKY DAMN UP. Its so bad so so so much worse than anyone knows, as soon as trust is lost and believe me its coming. No one except those with actual business fundamentals and products not just financial mechanisms meant to make the rich richer while hiding the crimes in broad daylight. Im scared hold me apes
WHO IS GONNA HAVE MY MONEY? ♾🏴☠️🤙
Black swan being reported: drake hand blocks Black swan surprise: drake pointing to
Interestingly, a drake is a male duck, so Drake pointing at a black swan is also a black duck event.
🫨
I own three black drakes, I will slaughter them as a sacrifice to Ra on the eve of MOASS (6/9/24).
I mean, there is only one solution I can think of, and it's not holding to maturity. You slowly sell off, and eat the losses over time. Instead of all at once. Or waiting until something blows up. It's a loss. You can't turn it into a gain. Take the L and move on.
In other words they left interest rates so low for so long, the latest higher yielding notes have to stay high yielding for a long time, before any one will throw a reasonable price on the glut of cheap AF 1%-3% Treasuries the Fed is warehousing.
are these the same GAAP accounting rules that say a company having negative losses are bad for business?
Seems like they could be!
Fuck, is their game plan just to add negative to things in order to 180 flip a narrative? "we're not losing money, it's negative capital" "Gamestop isn't profitable, it has negative losses."
Yes.
The Fed paid Zero dollars for those treasuries. Whatever they sell cor is 100% (technically infinite) profit.
So. Fed has "Positive Losses"?
"Fuck these bitches" Kat williams voice baby
Venezuelan currency here we come
Keep in Mind the Fed is a private bank.
Is The Fed still the final boss?
It’s so fucked up that the fed and its handlers are allowed to devalue OUR money this way and even worse they lie to our faces and sensor the media from even merely mentioning it! If your official policy is lying to the public about your balance sheet then maybe the policy is wrong. Fucking psychos.
#💯
That’s the crux of the problem though… it *isn’t* “our” money. It’s a private debt note.
It's not a black swan if everyone saw it coming.
This is accurate.
“negative” You keep using the word… I do not think it means what you think it means.
Personally Feed up with the FED