Recent comments in /f/wallstreetbets

DerpyMcOptions t1_jefjqzs wrote

Big $ has ways to make markets pump in order to offload before the unwind begins.

Remember BLK is one of the biggest dealers in UST's, they're trying to sell T bills for cash so they can use their discount to buy the call options off of ppl they sell the T bills to.

BLK has a vested interest in yelling that rates should go higher until the fed has to capitulate on rate caused problems. At which time they're holding all those calls... BLK was shorting T bills through puts, don't think they won't also buy calls on them as well.

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Trest43wert t1_jefj29b wrote

This is a big part of the story - many banks can't pay more than 0.5% interest because the money from their deposits are locked up in low interest loans from the past. Their overall portfolio may average 2% given that they had to sell recent bonds to fund outflows to money markets. Basically, bank holdings have dwindled to the assets with shit yield and they are trying, and failing, to pass that shit yield to grandma's savings account. Grandma aint having it so they sell more assets. Spiral ensues.

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