McLong Johnson

[Pi-Fi @gherkinit]

Just musing here but....
The front end of the Yen carry collapsed and a significant amount of positioning risked off, but cost-to-carry on the longer duration side of the carry is rising.

If the dollar continues to fall, tightening the spread, maintaining leverage will require that more and more assets are marked to market to satisfy calls.

So, If Jpow cuts the carry will tighten more and margin requirements in the long end will rise. If participants are forced to sell short term paper to cover the rise in cost-to-carry on the long end, liquidity can crunch, breaking the buck, and pushing MMs toward failure.

I think the low RRP balances, in the face of a rapidly falling dollar may indicate that money markets are not carrying a sufficiently liquid buffer and meeting 2a-7 requirements, are more exposed to volatility on short paper. This would increase exposure to a liquidity event and possibly leave money markets unable to meet redemptions and maintain a stable NAV.

I think this may already be in motion as we "return to normal" following the recent shock. But Jerome said "The time has come for policy to adjust", so maybe I'm just an idiot.

[McLong Johnson @McLongJohnson1]

@leadlagreport If boj matches the fed interest rate what would keep the yen falling?

[McLong Johnson @McLongJohnson1]

@BLZNCrypto @FearTheFiat @MasonVersluis It’s gonna go lower you’ll be able to average down

[McLong Johnson @McLongJohnson1]

@CheddarFlow Blackrock bigger than renaissance tech no?

[McLong Johnson @McLongJohnson1]

@MrZackMorris $REV PUMP IT

[Super 70s Sports @Super70sSports]

“Think of how stupid the average person is and then realize half of them are stupider than that.” - George Carlin

[Glenn Greenwald @ggreenwald]

Adam Smith, "The Wealth of Nations," 1776:

[McLong Johnson @McLongJohnson1]

@MrZackMorris The man literally always tells y’all to watch your size and and set stops… who cares if he gets in a few days before, if it still runs 50%+ for a few days after😂

[McLong Johnson @McLongJohnson1]

@manztrades Plotkins fund is irrelevantly small. They will facade a run and use this as the cause, June opex is coming up

[McLong Johnson @McLongJohnson1]

@smartertrader Fly private next time fella

[McLong Johnson @McLongJohnson1]

@AMCbiggums It’s literally in the name, hedge

[McLong Johnson @McLongJohnson1]

@ShinobiSignals @Mini_Tradez @STXRBOY999 @stocktalkweekly @Prophitcy @Ducky_Trades Didn’t even @MrZackMorris smh.

[McLong Johnson @McLongJohnson1]

@MrZackMorris You’re a legend. Your legacy will be truly appreciated by all once you’re gone Fr

[McLong Johnson @McLongJohnson1]

@The_RockTrading Shill 😂

[Joe Pompliano @JoePompliano]

Jeff Bezos owns the Washington Post.

He is the world’s 2nd richest person.

[McLong Johnson @McLongJohnson1]

Tony Stark

[Manz🌪 @ManzTrades]

What an entry $TSLA

https://t.co/C75M5VRR2W

[McLong Johnson @McLongJohnson1]

@LadeBackk Wait till people start figuring out the DTC owns all the stocks and has 54 trillion in assets

[McLong Johnson @McLongJohnson1]

@MrZackMorris Fucking legend