Archegos shows how leverage is the great accelerator of stock prices on the way up, and on the way down. One of its bets, ViacomCBS collapsed by 60%.
Subsidizing CMBS impedes the necessary market adjustment away from commercial property and toward residential redevelopment.
And refinance mortgage applications plunged by over half from 2020 spike.
The Fed provides the data quarterly, I dissect it at the stunning per-capita level.
Banks, as prime brokers and counterparties to the hedge fund, are eating multi-billion-dollar losses as they try to get out of these secretive stock derivative positions.
Now they’re wondering why.
The Fed smiles upon rising long-term Treasury yields as sign of economic growth and rising inflation expectations.
Gimme a break, will ya? Wherein I rant, supported by the Fed’s own data.
These manias and the rising long-term interest rates are on collision course.
In an investment environment where nothing matters anymore – until it suddenly does.