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The 2022 Economic Crisis Megathread

Started by Tamas, May 25, 2022, 05:15:04 AM

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The Minsky Moment

Quote from: HVC on December 07, 2022, 03:31:56 PMFeel better, thank minksky. What's the point of these short term swaps? Gambling on exchange changes? Or is it supposed to act as a currency hedge?

Currency hedging and securing lower borrowing costs. 

According to BIS, pension funds are big players in these markets.  That's probably a hedging rationale.  Pension funds invest in overseas securities to diversify returns but may not desire to acquire the foreign exchange exposure they take on as a by-product of those investments.  A swap is one way to address that.
The purpose of studying economics is not to acquire a set of ready-made answers to economic questions, but to learn how to avoid being deceived by economists.
--Joan Robinson


Quote from: HVC on December 07, 2022, 12:45:33 PMThis can't be good. Smart people explain to me how this is over blown

85 Trillion dollars "missing"

QuoteIts researchers can predict financial crises three years in advance using machine learning to aggregate predictions from different models.

EDIT:  Damn, scooped by Minsky.


Backin the real world Sainsbury's et al are taking the piss with their cheese prices, bog standard cheddar up a quid since last time.
"We have it in our power to begin the world over again"


Probably shouldn't be eating cheese in the bathroom, just saying.
Being lazy is bad; unless you still get what you want, then it's called "patience".
Hubris must be punished. Severely.