Podcast and Chill #75
From Liquidity To Credit Crisis; Bank Runs, Bailouts & Bitcoin; The Banking System is Broken
Today’s Cheat Sheet -
Support and resistance levels and our daily, weekly and monthly bias on BTC, ETH, OIL, ES, and NQ as well as our favorite altcoins.
“The Fed's H.4.1 report was released this past week, which saw the balance sheet increasing by roughly $300 Billion. The balance sheet increase consisted of a record $152.9 billion usage in the Fed's discount window, $11.9 billion in the Fed's new BTFP facility & a final $142.8bn to guarantee all deposits at SVB and Signature Bank. With a rally in risk asset's, many viewed this as the return of QE, similar to the 2019 repo crisis. In this episode, we discuss whether this is really the return of QE, or not and what it will mean for markets in 2023.”
“The Fed’s going to end up having to expand its balance sheet again, to proverbially print money, in order to provide the extra cash for the banks to be able to meet the demand deposit withdrawal; the banks should have been sitting on that cash all along.” — Caitlin Long.”
‘Jim Bianco, president and macro strategist at Bianco Research, explains what’s causing the recent cascade of bank failures. Yield seekers taking their money elsewhere are putting banks under strain. However, the Signature Bank takeover by New York regulators is “a little fishy,” Bianco says. He adds that DeFi has been holding up strong, providing an “alternative to this unstable system that we have right now.”’