RE: Global waves of debt.19 Dec 2019 21:13
SC/Boomer, debt is one thing. Since the Fed shrank their balance sheet in QT, they've blown back through it with half a trillion + bucks in liquidity + $60 billion of QE but don't call it QE, that gives the wrong signals. Banks are nervous, who owes what to whom. The collateral is becoming more doggy hence the spike in repo rates recently. It's a confidence thingy - confidence is everything, otherwise seizure.