Business, Economics, and Taxes: Capitalism. Yay? >=(

[dxmnkd316]

This is gonna make a great movie.

Especially the ending where they kill everyone involved in this

[LynahFan]

Especially the ending where they kill everyone involved in this

Should never have let Tarantino anywhere near that project.

[Kepler]

reditters discovered the Dian Fosse Center was running an adopt-a-gorilla.

GME went from 80 to 250 last week and wsb people got rich.

And so, we now have stuff like this.

[dxmnkd316]

Dumb apes lol

[Kepler]

Dumb apes lol

https://www.reddit.com/r/wallstreetb...r_of_the_dian/

[aparch]

Wells Fargo, Citi Bank, and Bank of America are all pleading with their shareholders to not make them accountable for their racist red-lining practices, claim they're "handling it internally."

[Kepler]

Elections have consequences.

The Federal Reserve said it was ending a yearlong reprieve that had eased capital requirements for big banks, disappointing Wall Street firms that had lobbied for an extension.

Friday’s decision means banks will lose the temporary ability to exclude Treasurys and deposits held at the central bank from lenders’ so-called supplementary leverage ratio. The ratio measures capital—funds that banks raise from investors, earn through profits and use to absorb losses—as a percentage of loans and other assets. Without the exclusion, Treasurys and deposits count as assets. That will likely force banks to hold more capital or reduce their holdings of those assets, both of which could ripple through markets.

[aparch]

Elections have consequences.

I think I get it, but can someone give me the "Explain-Like-I'm-5" explanation? Because this sounds like some of the fluidity we've seen in the markets may dry up if banks need to keep more cash on hand.

[Kepler]

I think I get it, but can someone give me the "Explain-Like-I'm-5" explanation? Because this sounds like some of the fluidity we've seen in the markets may dry up if banks need to keep more cash on hand.

My entire understanding of the article consists in the dictionary definitions of the term in the article. I'm sure we have others here with financial experience (dx?) who will know far more.

[dxmnkd316]

St clown?

This stuff flies a bit above my head. I understand they're basically changing what counts a "liquid" assets. I don't understand the impact to the market without reading more. Probably a lot of "ooga booga scary! Me want less regulations" nonsense.

edit, the more I read, the less I think I was even close.

[FadeToBlack&Gold]

CNN: Your #1 Source for Trump Bankruptcy Porn

[St. Clown]

St clown?

This stuff flies a bit above my head. I understand they're basically changing what counts a "liquid" assets. I don't understand the impact to the market without reading more. Probably a lot of "ooga booga scary! Me want less regulations" nonsense.

edit, the more I read, the less I think I was even close.

The short version is that it takes cash out of the economy as banks have to keep more cash within their FRB accounts. That would, normally, cause an increase in market interest rates as there’s less cash available to lend. However, given the tendency to try keeping interest rates as near zero as they can, I expect the Fed to start buying some Treasury debt to inject more cash into the system, offsetting the Required Ratio reset.

[dxmnkd316]

So is that a form of QE?

[St. Clown]

QE is putting more cash into the economy. Increasing the scope of what’s applied to the Required Ratio, or the % of the ratio itself, would cause the opposite. That’s why I think there will be an offsetting action taken by the Fed in the near future.

[dxmnkd316]

QE is putting more cash into the economy. Increasing the scope of what’s applied to the Required Ratio, or the % of the ratio itself, would cause the opposite. That’s why I think there will be an offsetting action taken by the Fed in the near future.

RIght, yeah, I wasn't very clear. I meant the Fed buying treasuries to offset is a form of QE.