Matt Dubuc

[Matt Dubuc @MattDubucnirn]

@unusual_whales Um. Nick Bostrom coined that term years ago. A must-read book.

[Matt Dubuc @MattDubucnirn]

@TOzgokmen And zero evidence resembling Lehman's criminal Repo 105, which Janet Tavakoli had to help the Fed interpret.

Janet later went on to convince Warren Buffet that 640 trillion in derivatives, dwarfing the Fed's puny 5 trillion were WMDs of finance
@RudyHavenstein
@Kathleen_Tyson_

[Matt Dubuc @MattDubucnirn]

@TOzgokmen More likely Bear Stearns.

[Matt Dubuc @MattDubucnirn]

@RyanRozbiani Of course not!

[Matt Dubuc @MattDubucnirn]

@RudyHavenstein 2/2. These are most likely swaps, RPs and reverse RPs, which are essentially loans which revert back to bailor, with zero ownership change.

But dataset doesn't specify if RPs are system repos or customer repos, so it's impossible to know if this reflected any policy shift!!!

[Matt Dubuc @MattDubucnirn]

@RudyHavenstein 1/2. This worthless data set omits critical info required to ascertain the intent of the Open Market desk, whose former chief Richard L. really likes me and my deep understanding of why Volcker rejected monetarism in mid-1982 at the urging of Wayne Angell and the KC Fed.

[Matt Dubuc @MattDubucnirn]

@GrantHBrennerMD Indeed . In electronics parlance, potentiometers often help.

[Matt Dubuc @MattDubucnirn]

@emma_j_saunders Perhaps both?

[Matt Dubuc @MattDubucnirn]

@emma_j_saunders Nuclear first strikes are not a panacea.

[Matt Dubuc @MattDubucnirn]

@emma_j_saunders Republicans are floundering around for competent, quick ways to win the affordability debate.

If they allowed market forces to actually work, they would allow our working poor to buy Chinese electric cars, which would benefit those neglected souls.
@RudyHavenstein

[Matt Dubuc @MattDubucnirn]

@emma_j_saunders @TOzgokmen @RudyHavenstein @Kathleen_Tyson_ 2/2. There are those in this thread who insist the price of gold must always go up, whether we are in inflationary times, deflationary times, or in between.

I was trying to reason with that viewpoint, which ignores the capitalist laws of supply and demand in price discovery.

I

[Matt Dubuc @MattDubucnirn]

@emma_j_saunders @TOzgokmen @RudyHavenstein @Kathleen_Tyson_ 1/2. Correct. First, the goal of the Fed is to steady & right the gigantic ship.

They do this, together with bond markets which dwarf their tiny balance sheet of just 5 trillion, by focusing on reducing real interest rates, which are a superior gauge of inflationary expectations

[Matt Dubuc @MattDubucnirn]

@kaur_kirenkaur @MarioNawfal Well, Demis Hasabis is quite a legend, and a Nobel Laureate.

[Matt Dubuc @MattDubucnirn]

@RudyHavenstein What an overhang.

[Matt Dubuc @MattDubucnirn]

@emma_j_saunders As you know, Bessent is required by law to only conduct these purchases at prevailing market prices.

Interesting day indeed, if true. It may be false however, so many are just talking their book.

[Matt Dubuc @MattDubucnirn]

@sokrypton @MelindaBChu1 Biologists are horrified at how little tech bros know about why and how a living organism is different than a chair.

[Matt Dubuc @MattDubucnirn]

@RudyHavenstein As an avid defender of beautiful Northern California, with more Nobel Laureates than anywhere in world, I was pretty disappointed in the quality of research papers that came from the San Francisco Fed when Yellen was in charge there.

The worst, save for St. Louis, in the 1980s.

[Matt Dubuc @MattDubucnirn]

@RudyHavenstein If a person claims the Fed cannot raise rates, they are foolish wrt the Fed, a priori.

"If you can't figure out who the sucker is at the poker table, it's probably you."

[Matt Dubuc @MattDubucnirn]

@RudyHavenstein @HillaryClinton @BillClinton Correct.

[Matt Dubuc @MattDubucnirn]

@RudyHavenstein The bond markets are smart enough to jack up interest rates to force the Fed's hand.