Soooo...all the chatter about taxes on unrealized gains, it appears someone is positioning on taking a deduction on unrealized losses, is that what this all is really about? Just sayin'.
Say I would buy a security for 1000, and it price slumps to 750. As long as I do not sell the security no loss is incurred.
As a manner of bookkeeping requirement, the books have to be updated reflecting the current value or, worse, liquidation value, especially when a margin call is in the works.
The same with bonds. Say I would have a 1000 dollar bond yielding 3% a year. When the interest rate goes to 2, it means that my bond has become more valuable as the same amount of money yields more.
In case I wanted to get rid of the bond, I could earn a premium on it.
The opposite is true as well, Say the interest would go to 4. Who would be interested in getting a measly 3%? So, the acquiring price at a sale would be lower.
As we saw with these banks last year, the moment the securities are called in, that' s were the problem starts, cascading down in free fall.
Now consider the Bank of England in a state of REPO ANYTHING, including on-performing loans? And what about the ECB? They have a 2 trillion sword of Damocles above their heads.
The other thing about this graph is the size of the securities for sale ....So, what could be the reason to touché a loss? Some people really want out of the game....
Money isn't actually lost. It exchanges hands. All that upside down is the fiat flowing back I to the cabals hands. They can't spend it fast enough. If it doesn't get converted when the flip happens which it won't, then it will in truth be lost because nobody on the planet will be taking it anymore and they won't get to convert it.
MOASS. Is. Tomorrow.
It's always tomorrow until it is today.
We ride in October. then options chain is crazy for a reason.
Kamala enters the chat. Kek!
Soooo...all the chatter about taxes on unrealized gains, it appears someone is positioning on taking a deduction on unrealized losses, is that what this all is really about? Just sayin'.
A waterfall?
Before reading further: activate this song by Leonard Cohen: You want it darker:
https://iyewtu.be/watch?v=hCXaPzEHPXY
Here it goes:
These are paper losses ....
Say I would buy a security for 1000, and it price slumps to 750. As long as I do not sell the security no loss is incurred.
As a manner of bookkeeping requirement, the books have to be updated reflecting the current value or, worse, liquidation value, especially when a margin call is in the works.
The same with bonds. Say I would have a 1000 dollar bond yielding 3% a year. When the interest rate goes to 2, it means that my bond has become more valuable as the same amount of money yields more.
In case I wanted to get rid of the bond, I could earn a premium on it.
The opposite is true as well, Say the interest would go to 4. Who would be interested in getting a measly 3%? So, the acquiring price at a sale would be lower.
As we saw with these banks last year, the moment the securities are called in, that' s were the problem starts, cascading down in free fall.
Now consider the Bank of England in a state of REPO ANYTHING, including on-performing loans? And what about the ECB? They have a 2 trillion sword of Damocles above their heads.
The other thing about this graph is the size of the securities for sale ....So, what could be the reason to touché a loss? Some people really want out of the game....
....Kill the flame
Nice analysis. The Leonard Cohen song made it really sink in.
Looks like a royal flush going down the toilet bowl.
It's the Greatest Economic Recovery of Our Lifetimes.
At least that is what Pravda has been telling us.
Money isn't actually lost. It exchanges hands. All that upside down is the fiat flowing back I to the cabals hands. They can't spend it fast enough. If it doesn't get converted when the flip happens which it won't, then it will in truth be lost because nobody on the planet will be taking it anymore and they won't get to convert it.